Waiting for perfect market conditions often means missing out. Because what you may not realize is, if you’re ready and able to buy, this time of year could actually give you an edge. Here’s why. As the weather cools down, the housing market can too – and that works in your favor.
You Likely Won’t Feel as Rushed
Homes tend to take a little longer to sell during this time of year. Data from the National Association of Realtors (NAR) shows the average time a house sits on the market jumps up during the winter months (see the green bars in the graph below):
This is partly because fewer buyers are active at this time of year – and that decrease in buyer competition means the houses that are on the market aren’t going to be snatched up as quickly. So, if you decide to buy a home in the next couple of months, you’ll likely have more time to consider your options and negotiate a deal without feeling as pressured.
Sellers May Be More Willing To Negotiate
And since homes generally take longer to sell during the winter, sellers are often more motivated to close a deal. That can work in your favor, too. According to NAR:
“Less competition can lead to better deals. While homes are not selling as fast as during the summer, sellers may be more willing to negotiate.”
You have more flexibility to negotiate price, closing costs, repairs, or include extras like appliances.
Homes Are Less Expensive in the Winter
With less competition from other buyers and sellers who are more willing to negotiate, you may see slightly lower prices too. In fact, according to NAR, home prices are typically about 5% lower now compared to their usual peak in the summer.
While it may not seem like much, on a $400,000 home, it could mean saving $20,000 on the price.
You can see this expected seasonal shift in home prices taking place this year. Check out the graph below showing the median sales price of existing homes over the past 12 months. The green bars show lower prices in the winter months, a trend likely to continue this year. That gives you the chance to make your budget go further:
Bottom Line
Buying a home during the winter means less competition, motivated sellers, and potentially lower prices.
Let’s work together with real estate agents to find the right one at the right price for you.
