Winter is the Best Time to Buy a Home
Buyers willing to close the day after Christmas realize biggest discounts; The analysis also looks at best months to buy at the state level.
ATTOM Data Solutions, curator of the nation’s premier property database and first property data provider of Data-as-a-Service (DaaS), released its annual analysis of the best days of the year to buy a home, which shows that only three days of the year offer discounts below estimated market value — all falling in the month of December.
According to the analysis, buyers willing to close on a home purchase the day after Christmas realize the biggest discounts below the full market value of any day in the year. This analysis of more than 23 million single-family home and condo sales over the past six years is evidence of the continuation of a hot sellers’ market (see full methodology below).
“Closing on a home purchase the day after Christmas or on New Year’s Eve can be one of the most financially beneficial holiday-season gifts you can get,” said Todd Teta, chief product officer with ATTOM Data Solutions. “While lots of folks are shopping the day-after Christmas sales or getting ready to ring in the New Year, our data shows that buyers and investors are buying homes on those days at a discount. That’s a far cry from buying during June when they are likely paying about a 7 percent premium.”
Best Months to Buy
The analysis also looked at the best months to buy at the national level (December) and at the state level.
Nationally, while December is considered the best month to buy overall, there is still about a 1.2% premium. However, you can expect to pay higher premiums if you plan on purchasing in the summer, with the month of June having the highest premium at 7.1%.
The states realizing the biggest discounts below full market value were Ohio (-7.4% in January); Michigan (-7.2% in February); Delaware (-6.3% in February); Tennessee (-6.2% in January); and New Jersey (-5.8% in December).
For this analysis, ATTOM Data Solutions looked at any calendar day in the last six years (2013 to 2018) with at least 10,000 single-family home and condo sales. There were 362 days that matched this measure, with the four exceptions being Jan. 1, July 4, Nov. 11 and Dec. 25. To calculate the premium or discount paid on a given day, ATTOM compared the median sales price for homes with a purchase closing on that day with the median automated valuation model (AVM) for those same homes at the time of sale.