Guide to Buying and Selling in the Winter

There are many pros and cons to buying (or selling) a home during the winter season. Although the winter is generally known as a "slow season" for home buying and selling, it can have many benefits on both sides.





Here are CF Funding's list of Pros and Cons for Buying and Selling during the Winter season: 

Buying Pro's

Reduced Competition means less pressure, lower prices, and less likelihood of a bidding war.
Realtors may have more time during "slow season," are more available and responsive to your needs
Sellers may have less showings during winter months, therefore they may be quicker to respond.
Tax Benefits may be available for those who close by December 31, such as mortgage interest and property taxes.
Home shopping in winter allows you to see how well the house is built for winter weather (heating system, hot water, drafts, etc.)

Buying Cons

Limited inventory means you have less houses to choose from.
You may have difficulty seeing all features of the home's exterior due to weather (snow-covered defects may be hidden) leading to an unpleasant surprise.
You may feel a lot of pressure trying to balance holiday shopping / events with home shopping and mortgage tasks. Completing your holiday shopping early can help relieve this pressure !

Selling Pro's

Less competition from other sellers
Winter buyers tend to be more motivated, with a pressing need to move quickly.
Adorning your home with Christmas decorations is an easy way to make it look warm and welcoming!
According to a Redfin survey analyzing homes listed from March 2011 - March 2013, homes listed in winter had a 9% better chance of selling and sold about a week faster. They also sold for 1.2 percent higher price than those listed in other seasons! Read more on Redfin.com

Selling Cons

Showings may interrupt holiday events and activities.
Many home shoppers avoid looking during the winter, as they want more inventory, and may want to avoid moving in the cold and snow.


If you are looking to buy or sell this season, be sure to contact CF Funding for your mortgage needs. We can refer you to a great Realtor to help you get started, and we offer free preapprovals ! Give us a call at 630-328-8900 today, or visit our website at www.cffunding.com .

Rental Prices Rising as Interest Rates Remain Low

As the weather improves and Spring homebuying season is upon us, many renters are also shopping for new apartments. Unfortunately, rental prices are rising at the fastest pace since the recession, according to the apartment market research company Axiometrics Inc. At the same time, interest rates on a home mortgage are expected to stay low for years, as Federal Reserve Bank of New York President William Dudley shared in a speech today. CF Funding predicts these factors will combine to form a boost in housing activity in the coming years.

As the economy has improved and demand for apartments has risen, landlords were able to raise rental rates to an average $1,136.88 in April, which is 3.4 percent higher than in April 2013. Rental prices have seen the biggest spike this year since the recession ended in 2009. In a blog post from April 30^th, Stephanie McCleskey shared that “In Atlanta… only 9% of renters can afford apartments build in the past two years, compared with 22% of renters for units built in the previous cycle,” according to the research company’s affordability scale, which assumes 100 percent of residents can afford the least expensive apartment’s rent per unit.

In an updated blog post, the research company shared today that the apartment market is still strong, however “we still predict that the rate of effective rent growth and occupancy will moderate by the end of the year,” said KC Sanjay.

CF Funding is happy to share that buying a home is still affordable, as interest rates are still near 2014 lows and are expected to stay low. CNN Money shared today that there are three major reasons why the Fed may keep interest rates “below historic averages for the long haul,” based on William Dudley’s speech today. Dudley indicated that the economy is still too weak to raise interest rates, as the Great Recession “scarred households and businesses” and the housing industry faces “several significant headwinds.” Dudley emphasized the issues of mortgage credit availability for those with low credit scores, student loan debt burdens, and housing supply. Dudley also shared that as a large portion of Americans are retiring, the potential for economic growth is smaller than it was in the 1990s.

On a positive note, Dudley expects the federal rate to stay “well below” rates seen in a booming economy, which were as high as 4.25%.  CF Funding will keep readers updated as interest rates may change throughout the year on their website at www.cffunding.com/index.php/mortgagerates. Renters who are considering buying a home may contact the lender at 630-328-8900.