Real Estate News with Heather Tankersley, Keller Williams
- Heathery Tankersley
- 3 days ago
- 4 min read
Is January the Best Time To Buy a Home?
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? Let’s take a closer look at your numbers and the homes that are available in our area.
Is Buyer Demand Picking Back Up? What SellersShould Know.
The housing market hasn’t felt this energized in a long time –and the numbers backing that up are hard to ignore. Mortgage rates have eased almost a full percentage point this year, and that shift is starting to wake up buyers.
Home loan applications have risen. Activity has picked up.
And sellers who step in early could benefit from the momentum long before the competition catches on.
Let’s take a look at what’s happening behind the scenes and how you can take advantage of it.
When Rates Come Down, Buyer Activity Goes Up
In today’s market, buyer demand is closely tied to what happens with
mortgage rates. As rates come down, applications for home loans go up. Rick Sharga, Founder and CEO of the CJ Patrick Company, explains it like this:
“We’re in an incredibly rate-sensitive environment today, and every time we’ve
seen mortgage rates drop into the low-to-mid 6% range,
we’ve seen an influx of buyers hit the market.”
And that’s exactly what the data shows. More people who were sidelined are applying for mortgages again now that borrowing costs have come down. Of course, that’s going to ebb and flow just like rates ebb and flow. But the bigger picture is, there’s been improvement as a whole since rates started coming down.
In fact, the Mortgage Bankers Association (MBA) shows the Mortgage Purchase
Index is hovering at the highest level so far this year:
And that's not the only sign of optimism. MBA also shows mortgage applications recently hit their highest point in almost 3 years too.
A clear sign demand is moving in the right direction heading into 2026:
And just in case you were wondering, it’s not just pent-up demand coming out of the government shutdown that slowed some of the processing of
government loans for a month or so. If you look back at the last graph, you’ll see the steady build-up of momentum throughout the entire year.
The big takeaway for you is this. Now that rates have come down, buyers are
starting to ease back into the game. And that’s turning into real contracts on
homes just like yours.
Home Sales Are Rebounding
Just to really drive home that this is trending in a good direction, the most recent report from the National Association of Realtors (NAR) shows pending home sales (homes that are under contract) are picking up too. The Pending Home Sales Index is also at the highest it’s been all year (see graph below):
And that means the market is ending the year on a high note and headed into 2026 with renewed energy. While that may not seem like a
big shift, it’s a rebound worth talking about.
Pending home sales are a leading indicator of where actual sales are going. If more homes are going under contract, it’s a good sign more homes will
actually close over the next two months, ultimately boosting sales. This could be part of why experts project home sales will inch higher in 2026 than they were in 2025 or in 2024.
Of course, this may ebb and flow a bit as we see some year-end volatility with
mortgage rates. But, it shouldn’t be enough to change this overall trend. Expert forecasts say rates should stay pretty much where they are throughout 2026. That means the stage is set for this momentum to continue going into the new year.
What This Means for You
Here’s the opportunity. Selling now means:
More buyer demand. As affordability improves, you could see more buyer traffic and home showings (if your house is priced and staged right). And the best part?
The buyers who are re-engaging feel like they’ve already waited too long for this moment. So, they’ll be eager to move.
Being ahead of the curve. Listing sooner rather than later puts you ahead of the game, before other sellers realize something's shifted.
Whether you’ve been putting off selling because you thought buyers weren’t buying, or you took your house off the market because you weren’t
getting any bites, this is your sign to act.
Bottom Line
Want to know what's happening with buyer activity in our area,
and what it could mean if you want to sell your house in the new year?
Let’s talk about getting your house listed in early 2026, so you can take
advantage of this momentum building in the market.
How To Stretch Your Options, Not Your Budget
After several years of high mortgage rates and hesitation from buyers,
momentum is one of the biggest homebuying advantages you can give yourself today is surprisingly simple: a flexible wish list.
Think of it like this. Your wish list and your budget are the guardrails of your search. And when your budget needs to hold firm, there’s another lever you can pull. That’s seeing if you truly need all of your desired features. Because the truth is, a small compromise could be the difference between feeling stuck and getting the keys to your next home.
The data shows more buyers are using that strategy to offset affordability hurdles
in today’s market. A recent study from Cotality found most buyers (70%) ended up compromising on one or more items from their original wish list. But before they started searching, only 33% expected to compromise at all:
What changed? They realized something during the search. The things you
can’t change matter far more than the things you can update later.
You can:
Install hardwood floors
Put in those marble countertops
Upgrade the bathrooms down the line.
You can’t as easily:
Add land
Tack on more bedrooms or bathrooms
Move the house closer to people you care about
In the end, things like the location, layout, and overall bones matter far more than the cosmetic features you can change later. And that realization is power.
A Simple Step That’ll Open More Doors
So, if you’re hitting a wall in your search or you’re browsing online and just not seeing “it,” here’s an easy exercise that can reset the whole experience.
Write down everything you want in a home, then sort it into three buckets:
Must-Haves: Your non-negotiables. The things that make daily life workable: the number of bedrooms, the length of your commute, accessibility, safety, or being close to your family or support system.
Nice-to-Haves: Features you’d absolutely enjoy but aren't truly essential. Some examples: a fenced-in backyard, dual closets in the owner’s suite, or a stamped patio.
Dream Features: The extras that would truly be over the top. They’re the things you think about when you say “one day, I want to have...” It's great if you get them, but totally fine if you don’t (for now).
Once you divide your list, you’ll notice something. Your wish list can either
limit your options or open them up.
Sometimes you’re treating “nice-to-haves” like “must-haves.” Loosen that up even a little, and suddenly more homes come into range – including homes you may have scrolled past that could actually work for your lifestyle.
Small Flexibility, Big Payoff
Your next home doesn’t need to check every box.
It just needs to check the right ones.
Maybe that means considering a house that needs light cosmetic updates. Maybe it means choosing a slightly smaller yard for a better location.
These aren’t sacrifices. They’re worthwhile trade-offs that get
you into a home. Just remember, anything cosmetic
can be upgraded over time. But getting the
right bones, the right layout, the right location? That’s what sets you up
for the long run.
An Agent Helps You See the Possibilities
If you’re not sure what to hold firm on and where you can flex, that’s where a trusted agent can be a game changer. They'll help you spot the opportunities, walk you through
what features you truly shouldn’t budge on, and determine which ones you can add later – when the time is right.
Bottom Line
If you’re ready to find a home that fits both your budget and your life, let’s take a look at your wish list together. With a local expert on your side, it’s easier
to see where a little flexibility can open up a lot more opportunity.