As the holidays draw near and the cold sets in we tend to become more dormant, much like the real estate market in many regions of the country, making it a great time to get out and buy before conditions likely thaw out by spring.

Real estate professionals in many parts of the country report the market is softening, which is normal for this time of the year. Kids are settled into the school year, the holidays are approaching, and many put off buying a home until spring, or at least until the new year.

But the savvy buyer will take advantage of the current conditions, which, coupled with interest rates below 6 percent for a 30-year, fixed-rate mortgage, make it an excellent time to buy.

"Well, the market, it is a changing," said Realtor Bill Merryman, of Concord, North Carolina. "Slowly moving toward a buyer's market. Homes are staying on the market a tad longer without as many multiple offers and prices are soft in all price ranges. With interest rates remaining low, isn't this a lovely time to buy?"

And with houses sitting on the market longer, buyers will often have the upper hand in negotiations. This is especially true in areas of California.

"It has become a much more balanced market," said Judith Brickman, a Danville, California Realtor. "Buyers are able to negotiate on price and sellers are looking at the statistics before adjusting their expectations. The good, well-priced properties are not staying on the market more than 30 to 45 days ... Our interest rates are great and a lot people feel that this is the time to buy."

Pacific Grove Realtor Eric Stauffer agrees.

"The Pacific Grove market is slower than I have seen in quite some time," he said. "While prices are not plummeting they are certainly soft. The inventory of available homes is greater than it has been in years. Perhaps the best of all conditions for buyers, more homes to choose from generally soft market conditions and a overall resilient real estate market."

If you have been thinking about buying, or plan on buying in the near future, you may want to think about changing your mindset. It could end up saving you a considerable amount of money.

"Traditionally in Minnesota prices remain steady or decline a bit in the late fall and winter months, which is generally as a result of the seasonal changes," said St. Paul, Minnesota, Realtor Joann Conrad. "Don't be fooled by thinking you don't want to move during winter or over the holidays. If you wait for spring, you will likely pay much more. Now is the time to buy."

Not only will you risk the probability that prices will rise, but who knows what interest rates will be like next year. Today's 5.94 percent for a 30-year, fixed-rate loan is incentive enough to think about buying now.

Speaking of incentives, if you're in the market for a new home, builders traditionally try to sell as much as they can by year's end. What that means to you is incentives - those nice little extras they throw in to get you to buy.

"As the holidays approach and the real estate market slows, there's a good choice of houses for buyers, and new construction makes up over 50 percent of sales," said Seattle Realtor Susan Spencer. "Builders are providing a lot of incentives - buyer's closing costs, reduced mortgage rates, $1,000 to $10,000 dollars in allowances for buyers " house options" like hardwood floors, upgraded appliances and lighting."

And anxious sellers are providing incentives, too.

"Now that the chill of winter is beginning to set in and the holiday season is nearly upon us, sellers are beginning to see that they must be more competitive in the marketplace to affect a sale," said Stacy K. Willhoit, a Realtor in Springfield, Missouri. "Many listings are now beginning to show large reductions in price, and sellers are becoming more willing to offer incentives to buyers in order to set their homes apart from all the others on the market."

So if you do start looking in the weeks ahead, be sure to keep an open mind. Always think about the potential. You can always change the carpet that would clash with your furnishings, paint those dingy walls, replace outdated appliances, or add the back yard patio area that is missing. Remember, if the sellers are anxious to sell or the house has been on the market a considerable length of time, you'll likely have the advantage in the negotiation process.

Finally, if you do manage to buy and close escrow by the end of the year, you'll have the added benefit of being able to deduct your closing costs, mortgage interest, and property taxes on your 2002 tax return.

Published: November 19, 2002

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