If you're looking for a new home, consider waiting until there's snow on the ground and a nip in the air. Buying in winter can save you tens of thousands of dollars, according to a new LendingTree study.
A review of 2024 real estate data found that January was the cheapest month for home sales, with properties going for a median of $178.60 per square foot. By May, the priciest month, comparable homes were selling for $194.20 per square foot, an 8% increase. On a typical 1,500-square-foot house, that's an extra $23,400.
In February, the second-cheapest month, houses sold for a median of $183.70 per square foot, or $15,750 less than in May.
| Month | Price per square foot |
|---|---|
| January | $178.60 |
| February | $183.70 |
| March | $187.90 |
| April | $190.50 |
| May | $194.20 |
| June | $193.40 |
| July | $190.30 |
| August | $189.70 |
| September | $187.40 |
| October | $189.40 |
| November | $188.10 |
| December | $187.40 |
In part, the price differential is due to competition. Summer is the most popular time for homebuying, according to LendingTree, which found Americans buy about 1.4 times more homes between June and August than they do between December and February.
"Moving during the summer means parents don't have to uproot their kids in the middle of a school year, which can be traumatic," Matt Schulz, LendingTree chief consumer finance analyst, said in a release.
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10–30 years
620
5% for conventional loans, 3.5% for FHA loans, 0% for VA loans, 10.01% for jumbo loan
10, 15 or 30 years for fixed-term conventional loans, 30-year VA and FHA loans. Custom mortgages with fixed-rate terms from 8 to 29 years.
620 for conventional, 500 for FHA
0% for VA, 1% for RocketONE+, 3% for conventional, 3.5% for FHA, 10% to 15% for jumbo
The longer days and warmer weather also mean touring homes is a more pleasant experience. And many leases end in the summer, enabling renters to smoothly segue into homeownership.
According to Schulz, however, there are ample benefits for those willing to brave the cold. Homes stay on the market longer in January — a median of 75 days, compared to just 48 days from April to June.
"While there may be less inventory in the winter, you may find less competition for available homes," he said. "You might also find that sellers are more eager to bargain during those off-peak times, not wanting to alienate buyers."
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