As the temperature drops and we all brace for the winter, there are major advantages to finding the home of your dreams during the cold season.
During the warmer seasons there tends to be an increase in inventory on the market but with that increase comes a hefty increase in price and contract competition. More buyers are looking and when it comes time to put an offer in, chances are you are not the only buyer interested.
Research has found that by home hunting during the colder months, buyers are more likely to find that prices have dropped and competition has also lowered.
- Sale prices decrease in the autumn months
- In the 50 metro areas, home sale prices dropped 2.96% on average (that’s a drop of $8,300 on the median home)
- Home sale prices are usually lowest in winter
When discussing winter buyers, Jonathan Smoke, Chief Economist of Realtor.com outlined “You have 50%-60% more inventory relative to the number of buyers, so there’s basically more options per buyer, and that translates into less competition.”
We found that NerdWallet backed up Smoke’s statements with data on how home prices usually bottom out in the winter months, providing an opportunity to save money.
The main advantages of less competition translates into lower home prices allowing buyers the opportunity for a lower down payment. During traditional market peak months, there tends to be more inventory on the market but with that inventory, buyers pay a higher premium.
We find that buying a home really depends on when you as a buyer are comfortable and prepared and that time is different for every buyer. When the numbers are crunched, winter statistically is the best opportunity for buyers as competition tends to fall away.
The best thing for all interested in purchasing a home is to connect with an experienced Loan Officer and discuss the home buying process. Every buyer has different needs and sitting down and discussing your home buying goals are is the best first step.