Will Buying a House in January Save You Money? Experts Weigh In

Many real estate investors emphasize picking the right location, but timing also matters when buying a property. Some aspiring homeowners wait until slower months to purchase. But is buying a house in January the right choice for you? 

We chatted with multiple real estate experts and reviewed data from multiple sources to determine if January is the best month to buy a house. For context, I’ve been writing about finance for more than five years, and I’m very familiar with the real estate market. Let’s get into it.

Is January a Good Time to Buy a House?

Ultimately, the best time to buy a house is when you can afford it. However, buying a house in January offers several advantages over other months if you're ready to go. 

Homebuyers Have Less Competition in January

Brian Shahwan, VP Mortgage Banker & Broker at Melissa Cohn Group, Raveis Mortgage at William Raveis Mortgage, explains some of the benefits of closing a real estate deal in January.

“January can be a great time for buyers to purchase a home as competition is typically less aggressive than it is during the spring season,” Shahwan explains. “Although most sellers hold off listing their property until the official start of the spring season, typically around March, depending on the property's location, January can be an ideal time to scoop up a property and get a great deal. For example, buyers looking for a home located within areas that experience high summer traffic can find better deals and more motivated sellers during the off-season rather than during the peak season.”

Median Housing Prices Dip at the End of the Year

Data from the National Association of Realtors shows a consistent pattern with median housing prices. The median cost usually peaks in the summer and gradually dips for the rest of the year, with the biggest drop traditionally in January.

For instance, the median housing price was $415,700 in June 2023, which was the highest for the year. Then, the median cost to buy a house dropped steadily, reaching a low of $383,500 in January 2024 before prices began to rise again.

Less demand for housing in the winter months gives buyers more leverage. Most people don’t want to move to a new location during cold months, but this guidance seems to only apply to cold areas. 

Robert Washington, a Broker at Savvy Buyers Realty, helps people buy homes in Florida. He explains that locations that attract snowbirds have different peaks and dips compared to areas further from the equator.

“It can depend on the region you are in,” Washington explains. “For example, our peak season is the opposite of most of the country. Our peak season is in the winter when we have a lot of “snowbirds” in the area and our slow season is in the summer when there are fewer tourists in the area. Most markets have a peak season in the summer months due to kids being out of school.”

Moving Costs Are Cheaper

You will save money in most real estate markets if you buy a house in January, but the house’s price isn’t the only thing that will be lower. Since fewer deals get done in January, moving companies often lower their prices to attract buyers during slow months.

January is subject to extreme cold and blizzards. Meanwhile, the real estate market reaches its apex each summer, resulting in many people competing for moving services. You can save over $1,000 in moving costs if you buy a house in January instead of waiting until the summer when the kids are out of school.

Housing Inventory Drops in January

While you can save money buying a house in January, you won’t have as many options. Sellers also know that they can’t command high prices during the slower months and some opt to take their listings off the market during those months. 

However, the few sellers on the market will likely be motivated to sell. They know they’re not getting the best price for their property in January, but they list it anyway. Some sellers want to get the property off their hands and are willing to offer great deals for buyers. 

If you want more choices, you may want to wait until the spring or summer. However, if you want the lowest price possible while still having a chance of finding a house that matches your criteria, buying a house in January may be the best move.

When is the Best Time to Get a Mortgage?

While housing data clearly shows that January is the best month to buy a house, mortgage data is less conclusive. Mortgage rates fluctuate and there are personal factors to consider before deciding.

“Your specific financial situation will determine when the right time to purchase a property will be. Speaking with a mortgage professional is a great way to understand if now is a good time for you or not,” Shahwan explains.

“If now is not the ideal time, a mortgage professional can assist in coming up with a plan to get you where you want to be,” he continues. “These conversations are noncommittal and can alleviate a ton of stress by uncovering your true purchasing potential and what the actual figures of a home loan would be.”

What to Check Before Getting a Mortgage

If you’re on the fence about getting a mortgage or want to prepare yourself properly, you should monitor these things.

• FICO score: A higher credit score will make you eligible for better financing. You can get an FHA loan with a credit score as low as 500, but you’ll need a higher credit score to receive a conventional mortgage with a low APR.
• Debt-to-income ratio: Mortgage lenders check your debt-to-income ratio to gauge how much you can afford. Most lenders limit you to a 43% debt-to-income ratio, but some offer financing if you have a 50% DTI ratio. You can lower your debt-to-income ratio by earning more income, paying off your debt or taking out a 30-year mortgage instead of a 15-year mortgage.
• Down payment: A 20% down payment gets you out of private mortgage insurance and also results in a more favorable debt-to-income ratio. You also won’t have to worry about interest on any money you put down.
• Interest rates: If the Federal Reserve continues to reduce interest rates, mortgages will become more affordable. You can boost your chances of getting a low rate by improving your finances, but lower rates will also help.

Why You Should Trust Us

Benzinga has guided readers on their financial journeys for over 15 years. The Benzinga team has access to many real estate experts who provide commentary on articles. The experts in the article have navigated multiple real estate cycles and speak from years of experience. 

I’m a Certified Personal Finance Counselor (CPFC) and have been a writer for Benzinga since 2021. I have also contributed to other finance publications, such as US News & World Report, Business Insider, and Newsweek. 

FAQ

Sources

Shahwan, Brian. Personal interview with the author. 12 Jan. 2025.

Washington, Robert. Personal interview with the author. 12 Jan. 2025.

Brately, R. (2024, April 15). What to look for when buying a house?. Benzinga. https://www.benzinga.com/money/what-to-look-for-when-buying-a-house 

Horvath, S. (2023, Nov. 15). How to Save for a House. Benzinga. https://www.benzinga.com/money/how-to-save-for-a-house

Horvath, S. (2024, Sept. 25). How Much House Can I Afford? Benzinga. https://www.benzinga.com/money/how-much-house-can-i-afford

Kilander G. (2025, Jan. 12). Current Mortgage Rates. Benzinga. https://www.benzinga.com/money/mortgage-rates

Existing Home Prices. Mortgage News Daily. https://www.mortgagenewsdaily.com/data/existing-home-prices#about