Traditionally, buyers have avoided buying a home during the      holidays, thinking the last month of the year is a time of many  religious, social, and cultural celebrations. Many people feel they are too busy to deal with real estate matters and/or are convinced that the market is pretty much dormant until at least early spring.  Not so!  Not only do many folks have vacation time in December and are thus free to house shop, but the slower months are often the ones where buyers are really serious and prices have been reduced. 

 Here are four strong reasons to buy a home during this season:

  •  Lower prices. Because many people are too busy to house hunt now, the slackening of demand is reflected in softer house prices.
  •  Less competition. With fewer active house-hunters out there, you are unlikely to end up in a bidding war, and sellers will be willing to negotiate.
  •  Favorable mortgage terms. Because there is less demand for mortgage money during the holiday season, lenders may be willing to shave a few basis points off the interest rate or to forgo some of their fees in order to get your business.
  •  Tax deduction. If you close on or before December 31, you are likely to be eligible to deduct the interest component of your first monthly mortgage payment and any money you paid for points from your taxable income for this year.