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    Saturday, May 04, 2024

    Report: Winter holidays bring the best prices for buyers

    There's a perception that the real estate market enters a sort of hibernation once the temperatures start. Buyers can feel less motivated to search for a home during wintry conditions; sellers, in turn, may not think it's worth it to list the property when demand isn't as great.

    Of course, plenty of homes will still be on the market during the winter, and buyers are often able to score significant deals in this season. According to a recent report by the real estate data company ATTOM Data Solutions, the three best days of the year to buy a home all occur in December, with two occurring around the month's major holidays.

    The analysis looked at more than 23 million single-family home and condominium sales between 2013 and 2018, in markets with at least 10,000 sales during the year. The data showed that the housing market strongly favored sellers during this period, as the best discount only amounted to 0.3 percent below market value. Homes sold on December 26 had a median sales price of $195,500, just $500 below the median market value.

    The other two days associated with a bargain price were December 4 and 31, with both dates having a 0.1 percent discount. Homes sold on December 4 sold for a median price of $195,000, or $151 below market value. The typical property sold for $190,000, or $270 below the median sales price.

    "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."

    The end of the year was associated with more affordable home prices, although buyers typically paid a premium in these months as well. The median home sold in October between 2013 and 2018 had a price of $197,500, 1.8 percent above market value. The typical premium rose to 2.1 percent for a $198,018 median-priced sale in November, but dropped to 1.2 percent for a $198,000 median-priced sale in December.

    ATTOM Data Solutions also determined that the largest median discount during the winter occurred in Ohio, where buyers in January typically bought a residence at a 7.4 percent discount. The next highest savings occurred in February, with a median discount of 7.2 percent in Michigan and 6.3 percent in Delaware.

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