Why January Is the Cheapest Month to Buy a Home

Why January Can Be the Best Month to Buy a Home

If you are eager to buy a home this year January may quietly be one of the smartest windows to make a move especially in Wylie TX and across the DFW metroplexMany buyers plan to wait until spring assuming May is the best time because more homes usually hit the market That part is true But what also shows up in spring is a surge of buyers and with it more competition and higher prices.  In real estate the biggest advantages often go to first movers not the crowd

What the Data Shows

According to a recent LendingTree study buyers who purchased in January paid significantly less than those who waited until May. Looking at nationwide 2024 sales data buyers who purchased a 1500 square foot home in January paid about 23400 less than buyers who bought the same size home in May

That difference alone can mean:

A larger down payment
More cash left after closing
Lower monthly payments
Less financial stress

In many cases it is the difference between stretching and feeling comfortable

Why January Is Typically Less Expensive

This pattern shows up almost every year.

In 2024 May was the most expensive month to buy with a national median price of 194.20 per square foot January was about 8 percent cheaper at 178.60 per square foot February followed closely behind. On a typical home that seasonal gap adds up quickly

The reason is simple buyer behavior

Americans buy about 1.4 times more homes in the summer than in the winter In 2024 alone May accounted for nearly 10 percent of all home sales while January represented just over 6 percent

More buyers create more competition More competition pushes prices up Fewer buyers create leverage

What the Market Looks Like Right Now

This January advantage is showing up while the broader market is already cooling. According to Realtor dot com the national median home price dipped slightly at the end of 2025 Inventory is also higher than last year even though seasonal slowdowns are normal during the holidays

What that means in plain language is this:

There are more sellers than last January
There are fewer buyers than there will be in spring
Homes are not selling at peak speed

That combination gives buyers more breathing room

Why Buyers Have More Leverage in January

When homes sit longer sellers tend to listen more. Nationally newly listed homes spend about 75 days on the market in January From April through June that number drops closer to 48 days

That difference changes negotiations

In a January market buyers are more likely to secure:

Lower purchase prices
Seller paid closing costs
Repair credits
Interest rate buydown help

Each one affects how much cash you bring to the table and what your monthly payment looks like

What That 23000 Difference Really Means

Saving 23400 is not just about the purchase price It can change your entire financial picture

It can mean:

A stronger down payment
Avoiding private mortgage insurance
More savings after closing
Less stress when life happens

Those benefits last long after move in day

Should You Buy Now or Wait

January is not perfect There are fewer homes to choose from and less variety

But the tradeoff is leverage:

Less competition
More flexible sellers
Lower prices than spring

If you are planning to buy in Wylie or the DFW area this year it is worth paying attention to what the calendar alone can do for you

You do not need to rush
You just should not ignore what the data is telling you