December is the Month to Save MoneyForget about Black Friday, Cyber Monday and Cyber Week sales. As it turns out, November is not the best time to make your biggest ticket purchase. A new report from ATTOM Data Solutions says the best time to buy a home is December. Buying a home in December will save you more money than buying during the peak of the real estate season.
ATTOM Data Solutions, a provider of real estate data, just released its annual analysis of the best time of year to buy a home. The month of December came out the clear winner. Why December? Because December is a buyer’s best chance of buying at the best price. The data reveals that in December, homes sold for 1.2% more than their estimated market value on average. To compare, homes sold in June sell for about a 7% premium. For home-buyers, December is going to provide you with the best value.
According to their report, the three days of the year where homes sold for a discount relative to estimated market values were all in December: December 4, December 26, and December 31. Of these, the day after Christmas, December 26, was the best time to buy that home sweet home and get a 0.3% discount. Buyers and investors who are making home purchases on December 26 and December 31 are taking advantage of good pricing.
Gift Yourself a Home for the HolidaysSkip the after Christmas sales or the New Year’s Eve party. Instead make the most financially savvy gift-giving decision you can make by closing on your new home the day after Christmas or on New Year’s Eve!
A Look at the Local LevelWhile the analysis looked at best months to buy at the national level, the month of December as noted above, it also looked at the state level. The states with the biggest discounts below full market value were:
1. Ohio -7.4% in January
2. Michigan -7.2% in February
3. Delaware -6.3% in February
4. Tennessee -6.2% in January
5. New Jersey -5.8% in December
MethodologyATTOM Data Solutions looked at any calendar day in the last six years (2013-2018) that had at least 10,000 single-family home and condo sales. Meeting that threshold were 362 days with the exceptions being January 1, July 4, November 11, and December 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.
At Sherry & Co., our team model is comprised of three agents who specialize in the home-buying process. We also have two agents specializing in the home-selling process. Don’t let the winter months delay your real estate plans. Wintertime is actually an ideal time for prepping your home for the spring market and as the data shows for buying a home!