The housing market heats up in January

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Real Estate


The housing market heats up January
As hard as it is to believe, the "spring" housing market actually starts up each January in the dead of winter. There are two main reasons for this, and the first has to do with basic human psychology.
When the calendar turns to January, it is, of course, the beginning of a new year, and while the weather - in Minnesota, at least - is perhaps at its worst - the fact that a new year has begun inevitably makes us think about the months to come.
Each January, many of us set obligatory resolutions, start working out and dieting (for a while, anyway), and put all holiday decorations in storage for 10 months. In short, we are psychologically ready for a new beginning - and that often makes us think about moving to a new home. After all, if you find a home you like in January, it may not be until late March or even April until you ultimately move - just in time for spring.
The second reason January is a big time for home searches is a bit more dark - it reigns as the most popular month for starting divorce proceedings. While this is often an unfortunate occurrence, it also results in a spike of housing inventory, which is good for both buyers and sellers - and, yes, the agents who work with them.
Year in and year out, divorce attorneys and mediators report that January is the month when at least one partner decides "enough is enough" and wants to make a clean break and start a new life in the new year.
But why wait until January to split? Experts say that it often relates to simple timing - not wanting to put children and other family members through a messy (or even an amicable) divorce during the holiday season. Another reason might be that a new calendar year makes a marital dissolution a bit less complicated for tax purposes and child support allocation.
In any event, January is the time when housing markets across the country show signs of life, the number of homes for sale rise, and curious buyers emerge from behind their keyboards to take personal tours of homes of interest to them.
The question for 2023, however, is what the local and national market will ultimately do when all is said and done. Will sellers be less willing to place their homes on the market? Will buyers take advantage of more inventory and try to bargain their way into homes and neighborhoods previously unobtainable? Or will rising mortgage interest rates drastically slow down transactions? Time will tell!
Meanwhile, if you would like to discuss your plans for buying or selling in the coming weeks and months - or just chat about your plans for later this year or next - please feel free to text, call or email me. I'm here for you when you are ready.
Until next time,
InMotion Realty
Licensed in MN and WI
651.402.6356 - text or call any time!