Is January the Best Time to Buy a Home?

You might be tempted to put your homebuying plans on hold until spring, but winter—especially January—could actually work in your favor. While spring is traditionally seen as the prime season to buy, recent market data suggests January may be one of the smartest times for budget-conscious buyers.

Surprising? Let’s break down why January deserves a closer look.

Home Prices Are Often Lower in January

According to LendingTree, January is typically the least expensive month to buy a home. Historically, this time of year shows some of the lowest price-per-square-foot averages, while spring tends to bring peak demand—and higher prices.

To put that into perspective, data from the most recent full year shows that buyers who closed on a typical 1,500-square-foot home in January paid roughly $23,000 less than those who purchased in May. While the exact savings will vary depending on the home’s size, location, and price, the pattern is consistent year after year.

For today’s buyers, that difference can be significant—especially with affordability still top of mind for many households.

Less Competition and More Motivated Sellers

Winter is traditionally one of the slowest seasons in real estate. Many buyers and sellers choose to wait for spring, which creates a quieter market. For buyers who stay active, that can mean:

• Fewer competing offers

• Less chance of bidding wars

• More flexibility to negotiate

• A more relaxed buying experience

• 
  

Even more importantly, sellers who list their homes in winter are often highly motivated. With fewer buyers shopping, these sellers may be more open to negotiations and concessions. As Realtor.com notes:

“Less competition means fewer bidding wars and more power to negotiate the extras that add up—closing cost credits, home warranties, and repair concessions. These savings can reduce the overall cost of a home by thousands of dollars.”

That flexibility can show up in price adjustments, closing cost assistance, repair credits, or timeline accommodations.

Should You Wait Until Spring?

The biggest advantage of buying in January is avoiding the pressure that comes with the busy spring market. Once more buyers enter the picture, competition increases—and so do prices and stress.

Only you can decide what timing works best for your life, but waiting for spring doesn’t always mean better opportunities. In many cases, it can mean paying more for the same home and navigating a much more competitive process.

Buying in January often offers three key advantages: lower competition, potentially lower prices, and sellers who are more open to negotiation—benefits that tend to disappear as the market heats up.

If you’ve been thinking about buying a home, January may offer more opportunity than you expect.

Curious what purchasing in January could look like for your budget and goals? Connect with a local real estate professional who can help you explore available homes and run the numbers for your area.