With mortgage rates settling near 6%, homebuyers are venturing back into the market — and this month presents a golden opportunity for significant savings.
Purchasing a 1,500-square-foot home in January could save buyers an average of $23,000 compared to buying the same property in May, according to a recent LendingTree study.
The numbers tell a compelling story. LendingTree’s analysis of 2024 home prices revealed that May was the most expensive month for buyers, with median prices reaching $194.20 per square foot.
In contrast, January’s median stood 8% lower at $178.60 per square foot, while February came in at $183.70 — still 5.4% below May’s peak.
Taking note of the study, Realtor.com asked real estate professionals about these trends. The agents attribute the savings to several factors.
Matt van Winkle, a Compass real estate agent who has tracked markets for 15 years, notes that in January, sellers are often especially motivated. That fact allows buyers to benefit from the previous year’s pricing.
The strategic advantage extends beyond price per square foot. With fewer competing offers during the winter lull, buyers gain substantial negotiating leverage. This can translate into seller concessions, repair credits or assistance with closing costs — benefits that evaporate during the competitive spring market.
December 2025 housing data supports this trend, showing median home prices fell 0.6% to $399,950. Active listings rose 12.1% year-over-year, although inventory remains 12.5% below pre-pandemic levels. The market presents a unique window: Sellers motivated to close deals before year-end meet buyers ready for a fresh start.
The time to seek great deals varies by region. May marks the summer slowdown in South Florida, offering potential discounts. On the other hand, Midwest markets see May as their peak season due to school schedules and warmer weather. Those factors drive prices upward in the Midwest during May.
However, January is a great time to make a purchase in many markets. As Neil Brooks, president of NewDay Home, told Realtor.com:
“Many people pause their search during the holidays and wait for the spring rush, so buyers are often competing against fewer offers. That can translate into real savings through price negotiations, seller concessions, repair credits, or help with closing costs.”
If you are already a homeowner, check out the “7 Moves Homeowners Should Make Before Interest Rates Drop.”
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