You may not want to put your homebuying plans into hibernation mode this winter. While a lot of people assume spring is the ideal time to buy a house, new data shows January may actually be the best time of year for budget-conscious buyers. 

Kind of surprising, right? Here’s why January deserves a serious look.

1. Prices Tend To Be Lower This Time of Year

Lending Tree says January is the least expensive month to buy a home. And there’s something to that. January has historically offered one of the lowest price-per-square-foot points of the entire year. But the spring? That’s when demand (and prices) usually peak. And that’s not speculation – it’s a well-known trend based on years of market data.

So, how much less are we talking? Here’s a look at the numbers. According to the last full year of data, for the typical 1,500 square foot house, buyers who closed on their home in January paid around $23,000 less compared to those who bought in May. And that general trend typically holds true each year (see chart below):

Now, your number is going to depend on the price, size, and type of the home you’re buying. But the trend is clear. For today’s buyers, it’s meaningful savings, especially when affordability is still tight for so many households.

2. Fewer Buyers and More Motivated Sellers 

And why do buyers typically save in the winter? It’s simple. Winter is one of the slowest times in the housing market each year. Both buyers and sellers tend to pull back, thinking it’s better to wait until spring. And that means:

• You face less competition
• You’re less likely to get into a multiple offer scenario
• Sellers are more willing to negotiate (since there aren’t as many buyers)

With fewer buyers in the market, you can take your time browsing.

But winter doesn’t just thin out the pool of buyers, it also reveals which sellers truly need to sell. Because fewer people are house hunting during the colder months, sellers who really need to move tend to be more open to negotiating. As Realtor.com explains:

“Less competition means fewer bidding wars and more power to negotiate the extras that add up: closing cost credits, home warranties, even repair concessions. . . these concessions can end up knocking thousands of dollars off the price of a home.”

This can include everything from price cuts to covering closing costs, adjusting timelines, and more. It doesn’t mean you’ll automatically get discounts on every home. But it does mean you’re more likely to be taken seriously and given room to negotiate.

Should You Wait for Spring?

Here’s the real takeaway. When you remove the pressure and frenzy that comes with the busy spring season, it becomes much easier to get the home you want at a price that fits your budget.

But if you wait until spring, more buyers will be in the market. So, waiting could actually mean you spend more and you’d have to deal with more stress.

Now, only you can decide the right timing for your life, but don’t assume you should wait for warmer weather before you move.

Buying in January gives you: less competition, potentially lower prices, and more motivated sellers. And those are three perks you’re not going to see if you wait until spring.

Bottom Line

If you’ve been thinking about taking the next step, this season might give you more opportunity than you think.

Curious what buying in January could look like for you? Talk to a local agent who can help you take a closer look at your numbers and the homes that are available in your area.

There’s no denying affordability is tough right now. But that doesn’t mean you have to put your plans to buy a home on the back burner.

If you’re willing to roll up your sleeves (or hire someone who will), buying a house that needs some work could open the door to homeownership. Here’s everything you need to know so you can decide if this is the right move for you.

What’s a Fixer-Upper?

A fixer-upper is a home that’s livable but requires some renovations. Think cosmetic updates like wallpaper removal and new flooring or more extensive repairs like replacing a roof or updating plumbing.

While fixer-uppers need a little TLC, here’s why they may be worth considering, especially right now:

1. They Usually Have a Lower Price Point. Because of the repairs involved, these homes are usually less expensive up front than move-in-ready options. According to a survey from StorageCafe, fixer-uppers come with price tags that are about 29% lower, making them a solid choice if you’re having trouble finding anything in your budget.
2. Less Competition. When you’re ready to make an offer, you’re less likely to deal with competition from other buyers who are focused on move-in-ready homes.
3. Build Equity Faster. From choosing how to redo the floors to picking which cabinets you want in the kitchen, a fixer-upper allows you to design a space that fits your needs and style. And with smart renovations, you can increase your home’s value faster and potentially see a big return on your investment.

As The Mortgage Reports notes:

“If you’re a house hunter who’s not afraid of sweat equity, buying a fixer-upper could be your ticket to homeownership. Doing so could lead to big savings, even in some of the nation’s largest and most popular housing markets. Plus, adding the right features could help your investment.”

What To Know About Buying a Fixer-Upper

The possibilities that come with a fixer-upper are exciting, but there are a few things to think about first.

• Do You Have a Gameplan? Consider if you have the time, skills, or budget to tackle renovations. Be honest about what you can handle yourself, what you’ll need to hire out, and if a fixer-upper is truly a good fit for your lifestyle. Remember, you’ll likely be living in a construction zone at least for a little while.
• Prioritize the Repairs and Upgrades: Don’t stress yourself out thinking you’ve got to do all the work up front. Space out renovations over time in a way that makes sense for your budget and what’s most important to tackle first.
• Location Matters: You want the money you’re spending to fix up a house to be worth the investment. So, make sure the home is in an area with increasing home values and amenities locals love, like parks and restaurants.
• Get a Home Inspection: Hiring an inspector to do a thorough inspection before you buy is a must. What they find will help you understand what needs to be updated, renovation costs, and if it’s a project you want to take on.
• Budget for Surprises: Renovations rarely go as planned. So, be sure to set aside extra money to cover things like extended repair timelines, an increase in the cost of materials, or other unknowns that may come up.

Talk to a Lender About Financing Options: There are some renovation mortgages designed for homes that need a little work. But they may have requirements like spending and timeline limits, so talk to a trusted lender to understand the fine print.

Bottom Line

Fixer-uppers aren’t for everyone, but if you’re open to doing a bit of work, they can be a great way to overcome today’s affordability hurdles and find something in your budget. With the right mindset and careful planning, you could turn a less-than-perfect house into the perfect home for you.

So, if you’re considering taking the plunge, talk to a real estate agent about finding a fixer-upper that fits your budget and goals.