Buying in January Could Save You $23,000—Here’s Why

Mortgage interest rates hovering close to the 6% range are encouraging buyers to come off the sidelines, but January may have an added incentive.

Buyers who snag a 1,500-square-foot home in the first month of the year could save an average of $23,000 compared with those who purchase one in May, according to a LendingTree study.

"I've tracked markets for that past 15 years and my clients who get the best prices have purchased in December or January," Matt van Winkle, real estate agent with Compass, tells Realtor.com®. "During those months, sellers who are still on the market are more motivated and usually there is less competition."

"By purchasing in January, often buyers are still getting the previous year's pricing," van Winkle adds.

LendingTree analyzed 2024 home prices throughout all 12 months, and found that May was the priciest month for homebuyers—at a median of $194.20 per square foot. January’s median was 8% lower at $178.60, while February’s was 5.4% lower at $183.70.

"January is often considered one of the best times to buy because the market is quieter and buyers typically have more leverage," Neil Brooks, president of NewDay Home, tells Realtor.com.

"Many people pause their search during the holidays and wait for the spring rush, so buyers are often competing against fewer offers. That can translate into real savings through price negotiations, seller concessions, repair credits, or help with closing costs," Brooks says.

Buyers may be more inclined to make a purchase especially as December median home prices fell 0.6% to $399,950, according to the Realtor.com December 2025 Monthly Housing Market Trends report.

In 2025, Realtor.com data found that December closed out a slow and challenging year for the U.S. housing market. Supply is steadily improving, but demand remains soft. Active listings in December rose 12.1% year over year, but fell 8.9% month over month, as expected during December. 

When should you buy?

South Florida real estate agent Samantha LaViola, with DeBianchi Real Estate, tells Realtor.com that the right time to buy depends on a variety of factors.

"The end of November and December can be great for buyers who connect with sellers interested in getting their home sold and start with a clean slate for the new year," LaViola explains. "The same goes with January where buyers can take advantage of the same thinking process of a seller if the property has been sitting since the previous year."

Home inventory has dropped month to month. Active listings fell below 1 million homes for the first time since April 2025.

Nationwide inventory in December was 12.5% below typical 2017–2019 levels, a similar level to each of the last several months.

"The new year can actually be a strategic time to buy," Dan O'Brien, real estate agent with Trueblood Real Estate in Indianapolis, tells Realtor.com. "It's still a slower time of year where listings are sitting a little longer and sellers may be more willing to negotiate, but we do start to see an uptick in the number of listings compared to the end of the year.

"So you start to see more options on the market, you could have more negotiating power, and all the spring and summer competition hasn't popped yet."

LaViola notes that "buyers during January have a fresh start and readiness to them."

But once buyers and sellers get through the winter months, spring will see a surge of activity, so whether you're buying now or later, experts advise to start planning.

"In South Florida, May can be a great time for buyers to take advantage and get properties for a discount as it’s the start of a summer slowdown," says LaViola. "But in areas with better weather conditions or in areas with great school districts, buyers may find these properties to be pricier."

O'Brien sees a different market in the Midwest. "May tends to be the most expensive month to buy because that's when we see the most transactions throughout the year," he says. "Whether you have kids or not, a lot of our selling season revolves around the school year. The weather warms up in the summer and so do home sales. When the demand and competition increase, the prices increase too.