Why Fall and Winter are the perfect time to buy a home in Chicago! August 13, 2015 by UrbandBurbRealty If you have heard anything about the cycles of the Chicago Real Estate Market, it’s that it starts in the spring and is dormant by October (Fall / Winter). Seasonal fluctuations often dictate real estate market activity, but the unique characteristics of the fall and winter Chicago real estate markets can make it a good time to buy. The onset of winter months and the return of a normal schedule for most buyers with kids in school can make many people reluctant to make the big move. This can leave savvy home-shoppers with the opportunity of finding motivated sellers, and lower housing prices. Historically Lower Prices It’s not just a myth and it not a one-time fluke, the Chicago average real estate price is 16%-20% lower in winter than it is in Spring. These deals that close in winter, were contracted in the fall. As the real estate market slows down during the fall, as buyers focus on back-to-school activities and sports schedules distracts them from the hunt and sellers are starting to get nervous about keeping the property yet another season until spring. That gives them motivation to lower prices and negotiate with any serious buyers who come their way. Typically, November and December are the slowest months for real estate activity. Because of this, you may have more buying power than usual and possibly negotiate a lower asking price. Taxes You may want to take advantage of year-end homebuyer tax breaks and choose to purchase a home during the fall. The IRS allows deductions such as mortgage interest, mortgage insurance premiums and property taxes. Also any prepaid taxes and insurance premiums paid at the closing table can be deducted as well. Buyers who purchase homes in the fall should have a good idea if these deductions will be needed in order to come out ahead at tax time.Additionally, to file for a home owners exemption on your principal residence you have to have owned it by Jan 1st of the year. So if you purchase a home in April of 2016, you will not be eligible for the home owner’s exemption reduction of your real estate taxes for 2016. If you close in December 2015, you are set to receive that home owner’s exemption for 2016.Regardless of when you choose to make that move, the trick is to start the search early and learn the market you are interest in and don’t discount the real estate “off” season. To start your home buying journey, please take the Urb & Burb Questionnaire.