3 Reasons To Buy a Home Before Spring

3 Reasons To Buy a Home Before Spring

Let's acknowledge that purchasing a home can be daunting with the current mortgage rates. You may be contemplating whether it's better to wait until spring, when there could be more homes available and possibly lower rates.

However, the future direction of mortgage rates is uncertain, and delaying your purchase could lead to increased competition, higher prices, and additional stress.

What if deciding to buy now—before the spring surge—actually provides you with an advantage? Here are three reasons why this might be true.

1. Less Competition from Other Buyers

The winter months often see a slowdown in the real estate market. With fewer people searching for homes, you're less likely to encounter intense competition when making an offer. This can make the home-buying process feel more relaxed and less stressful.

According to the National Association of Realtors (NAR), homes typically remain on the market for longer periods during the winter compared to the spring and summer months (refer to the graph below):

With fewer buyers active in the market, you're likely to have more time to make thoughtful decisions about your home purchase. Additionally, this reduced competition may enhance your negotiating power, potentially leading to better terms or prices. As stated by the Alabama Association of Realtors:

“A significant benefit of buying a home in winter is the reduced competition. Because of the perceived benefits of spring, many buyers delay the start of their house hunt. As a result, you will find fewer people competing for the same properties during winter. Less demand can translate into more negotiating power as sellers may be more willing to entertain offers or agree to concessions to get a deal closed quickly.”

2. More Negotiating Power

With homes remaining on the market for extended periods, sellers may become more open to negotiation. This flexibility can result in more favorable deals for you as a buyer, such as lower prices or additional incentives like sellers agreeing to cover closing costs or undertake necessary repairs. Chen Zhao, an economist at Redfin, highlights this trend:

“. . . buying during the off season means less competition from other buyers. That means potentially negotiating a better deal.”

Plus, when demand is lower, sellers often feel more pressure to work with serious buyers. This could give you an edge to negotiate terms that work best for your situation.

3. Lock in Today’s Prices Before They Rise

Historically, home prices often reach their lowest levels during the winter months. Data from the National Association of Realtors (NAR) indicates that last year, home prices were at their lowest in January, February, and March—just before the onset of the spring buying season (refer to the graph below):

This pattern of lower prices in the winter is well-established—data from Bright MLS indicates that between 2010 and 2024, home prices in January and February were, on average, 15% lower than during the peak months, which typically occur in June. Buying during the off-season can thus mean avoiding the higher prices driven by the strong demand of spring.

Additionally, home prices generally tend to appreciate over time, increasing year after year. This means that if you're ready and able to buy now, you're not just potentially getting the best prices of the year, but you're also securing a property at today's prices before they rise further in the future.

Bottom Line

While spring is often considered the ideal time to buy a home, purchasing before the peak season can offer significant advantages, such as less competition, greater negotiating power, and lower prices.

If you’re ready to explore your options and take advantage of these benefits, let’s connect.