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Here in the northeast region of the United States, the traditional home buying season is spring and summer while the off-season is autumn and winter. Spring starts the home selling and home-buying season with the weather warming, longer days and the impetus to be settled in a new house before the next school year begins.
Housing demand is highly seasonal due to weather and the school year so there is more inventory on the market in spring and summer which drives pricing up. The more homes on the market translates to more comparable data for appraisers to use which means a more accurate value of your property compared to the fall/winter off-season when there are fewer homes on the market therefore, less comparable data. The more data the better value for the Seller.
There is more than just anecdotal evidence for listing in the spring. A 2015 study* found that homes listed between May 1 through May 15 sold an average of 18.5 days faster than homes that weren’t listed during that time frame. Homes that sold in the first half of May were also purchased for about 1 percent more than the average listing price.
*2015 Study conducted by Zillow
Don’t forget to take advantage of homeownership when you file your tax returns this year…
The tax code allows homeowners to deduct the mortgage interest from their tax obligations. For many people this is a huge deduction, since interest payments can be the largest component of your mortgage payment in the early years of owning a home.
The first year you buy your home, you are able to claim the points (also called origination fees) on your loan, no matter whether they are paid by you or the seller. If you need a copy of your settlement sheet to give to your accountant, we can send it right away.
Real estate property taxes paid on your primary residence and vacation home are fully deductible for income tax purposes.
Home Equity Lines
In addition to your mortgage interest, you can deduct the interest you pay on a home equity loan (or line of credit). This allows you to shift your credit card debts to your home equity loan, pay a lower interest rate than the horrendously exorbitant credit card interest rates, and get a deduction on the interest as well.
Don’t Own a Home? Should You?
In addition to the tax advantages of homeownership, owning is cheaper than renting in most cases. Buying is 52% cheaper in the greater Philadelphia area when compared to renting thanks to low mortgage interest rates and rising rents. Homeownership nationwide has actually become a better deal, 38% cheaper than renting on average.
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Call: 484-540-5366, Email: Team@SettleSensibly.com
Call: 1-877-296-6639, Email: Mike@KBmortgagellc.com