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The final couple of months of the year tend to be a time to embrace the holidays, shop for gifts, and focus on year-end financial planning. Buying a home may not be on your radar. Or, it may be something you very much want to do, but aren’t expecting to check it off your list in the coming weeks.

But actually, buying a home before the end of the year could work to your benefit. Here’s why.

1. Inventory is up

For too long, home buyers struggled due to a combination of high prices, expensive mortgages, and a serious lack of inventory. Unfortunately, home prices are still pretty high, and that may not change for a while. And mortgages aren’t exactly cheap these days, either (though things are better than they were — more on that in a bit).

But one aspect of the housing market that has improved is inventory. In September, there were 1.39 million housing units available for purchase, according to the National Association of Realtors. That’s a 23% increase from September 2023.

The more inventory you have to choose from, the greater your chances of finding a home that checks off the right boxes and fits into your budget. Plus, an uptick in inventory gives you more bargaining power as a buyer.

When inventory is low, sellers get the upper hand. Now that inventory is improving, things are evening out, which means you may have more wiggle room to negotiate a lower sale price. And if you happen to find a seller who really wants to close by the end of the year, they may be even more willing to come down on price.

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2. You may have minimal competition

A lot of people can’t fathom the idea of buying a home at a time when they’re busy making holiday travel plans, hosting family meals, and hunting for bargains to tackle their gift-buying needs. But if you’re able to manage the holiday season in conjunction with house-hunting, it could work to your benefit.

If you buy a home in the coming months, you may find that you’re competing against fewer buyers. That could make the process less stressful. It could also give you more room to negotiate with sellers.

3. Mortgage rates aren’t quite as high as a year ago — and they could fall before year-end

As of Oct. 31, the average 30-year mortgage rate was 6.72%. At around the same time last year, the average 30-year loan rate was 7.79%. So even though mortgages aren’t inexpensive per se, there’s a bit of relief on the borrowing front.

Also, there’s a good chance mortgage rates will creep downward before 2024 ends. We already saw rates plunge quite a bit in September before creeping back upward. Lenders may very well lower their rates beyond current levels, resulting in more savings on your part.

Plus, if you shop around for a home loan, you could snag an even lower interest rate on your mortgage — especially if you have great credit.

You may not think of November and December as great months to buy a home. But you may find that buying before the end of the year leaves you paying less. And that way, you get to kick off the new year having achieved a major financial milestone.

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