Nerdwallet and Realtor.com Chief Economist Jonathan Smoke say January and February are the best months to purchase a home. The median home sold in January sold for $7,003 less than the listing price, and home sales drop by 47 percent.According to two years of realtor.com data that includes the 50 most populous metro areas, home prices in January and February are, on average, 8.45 percent lower than prices in July and August — two of the most popular homebuying months. According to NerdWallet, home sales in January are 47 percent lower than in June, which means less competition for buyers looking for the perfect home. Smoke suggests home buyers grab whatever savings they can get because spring home prices will likely increase more than normal.
Smoke says another reason buyers should act now is an upcoming hike in mortgage rates, which are expected to reach nearly 5 percent. Take advantage of savings now. “As we look toward spring and later in 2017, that’s another reason to buy in January and February,” said Smoke. “Because rates are expected to be about 50 basis points, or half a percent, more as the year goes on.”