Why January May Be the Best Time to Buy a Home

It’s no secret that the housing market slows down in winter. Shorter days, colder weather, and the holiday season often keep both buyers and sellers on the sidelines until spring. But while spring is traditionally known as the best time to sell, it may not be the best time to buy a home.

According to a recent analysis, waiting until spring could cost buyers thousands. In fact, data shows that January is often the best month to buy a home, offering significant savings compared to the peak buying season.

How Much Can Winter Buyers Save?

The numbers speak for themselves. Home shoppers who purchased a house in January saved an average of $23,000 on a 1,500-square-foot home compared to those who bought in May, when market activity is at its highest. By price per square foot, the median home price in May last year was $194.20, while in January it was $178.60 — a meaningful difference that translates into real savings for today’s buyers.

In other words, buying during the winter housing market doesn’t just help you beat the crowds — it can also help you get more home for your money.

The Tradeoff: Lower Prices, Fewer Options

Of course, there’s a flip side. While winter home buyers enjoy lower prices and less competition, they also face limited inventory. Fewer sellers list their homes during the colder months, which means fewer options and potentially longer searches to find the perfect property.

Still, for motivated buyers — especially those prepared to act quickly when the right home appears — January offers a rare opportunity to buy before the spring rush and take advantage of softer pricing conditions.

Bottom Line

The best time to buy a home isn’t always when the weather warms up. If you’re ready to purchase, buying in January can deliver significant financial advantages, with less competition and lower average prices.