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Kelli Blystone
Spring and summer might be known as the peak homebuying seasons, but savvy buyers know that winter offers unique advantages. In fact, real estate data shows that peak season is mostly beneficial for sellers in the months of May, June, and July, offering seller premiums of 10% or more above market value. So, while that’s great for sellers, the opposite is true for buyers.
Because it’s off-season, there may be fewer homes on the market in the winter, but there’s also less competition for buyers and more opportunities to snag a great deal on a property.
From reduced competition to lower prices, purchasing a home in the colder months could save you time, money, and stress. Backed by data and industry insights, winter could be the perfect time to find your dream home.
1. Lower Prices Mean More Savings
According to the National Association of Realtors (NAR), home prices tend to be 3-5% lower during the winter months than during the summer. This seasonal dip occurs as demand decreases and sellers look to close deals quickly. Realtor.com also reports that median home prices often drop after the holiday season, allowing buyers to maximize their budget.
Additionally, if a home has been on the market since the spring and summer months, the sellers may be extra motivated to close a deal, meaning more leverage for buyers.
Pro Tip: These savings can offset other homebuying costs, like closing fees or minor renovations.
2. Less Competition in the Market
Winter months see 20-30% fewer buyers actively searching for homes compared to the spring and summer peak. With fewer buyers in the market, you’ll face less pressure to make split-second decisions or compete in bidding wars. This reduced competition means you’re more likely to purchase a home at or below the asking price, as sellers might be more willing to offer off-season discounts with fewer buyers at the table. In fact, in late 2022 and 2023, a significant portion of sellers included concessions, like covering closing costs or making price adjustments, in their deals, due in part to fewer competing buyers.
3. Homes Show Their True Colors in Colder Weather
Cold weather reveals a home’s potential flaws, highlighting issues that are less apparent in warmer seasons. Buyers can see how well windows insulate, whether the heating system is efficient, and if the roof withstands snow or ice buildup. While these problems are never fun to find, it’s better to find out if a home will need costly repairs before moving in rather than months down the line in your new home.
Identifying these problems upfront also allows you to negotiate repairs or adjust your offer. A survey by Porch found that 46% of respondents were able to use home inspection results to negotiate a lower price on their home, and leveraging inspection information saved homebuyers an average of $14,000 on the final price.
4. Motivated Sellers Could Mean Faster Transactions and More Bargaining Power for Buyers
Sellers listing their homes in the winter are often more motivated, whether due to job relocations, financial changes, or year-end tax benefits. The NAR found that homes sold in December and January typically close 10% faster than homes listed in peak months. Motivated sellers are also more likely to agree to buyer requests, such as covering closing costs or including appliances in the sale.
With fewer offers on the table, winter buyers gain more leverage. Motivated sellers during the off-season tend to negotiate more readily, offering opportunities for buyers to request discounts or repairs. Additionally, the slower pace of winter allows buyers to take their time during negotiations, ensuring they secure the best possible terms.
5. Realtors Can Dedicate More Time to Buyers
The slower winter market means realtors have fewer clients, allowing them to dedicate more time and resources to each buyer. The NAR found that buyer satisfaction increases in winter due to the personalized service they receive. Realtors can help you evaluate listings, negotiate deals, and navigate the closing process with fewer distractions.
6. Save on Hiring a Moving Company
Moving in winter can save you money. According to Moving.com, the average cost of hiring a moving company drops by 15-20% in the off-season. Additionally, you’ll likely have greater flexibility when scheduling your move. With fewer clients, movers often provide faster service and more personalized attention during winter. There may be a higher chance you’ll have to battle poor weather conditions during the move, but at least you’ll be saving money!
Ready to Make Your Move?
Don’t let the chill in the air stop you from achieving your homeownership goals. With lower prices, less competition, and motivated sellers, winter is a smart time to buy.
Remember, many factors are at play when deciding to buy a home. The season is just one aspect, and homebuying in the winter can mean many different things, depending on your location. Be sure to make homebuying decisions based on your own personal readiness and financial goals rather than only looking at seasonality trends.
