ATTOM Data Solutions [1] found that analysis of the best days of the year to buy a home shows that only three days of the year offer discounts below market value—all falling in December.
The analysis shows that buyers are willing to close on a home purchase the day after Christmas get the biggest discounts that any day of the year. ATTOM’s study researched more than 23 million single-family home and condo sales over the past six years.
“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% premium.”
From 2013 to 2018, those who purchased homes on December 26 received a discount of 0.3%. The other two days with the biggest discounts were December 31 (0.1%) and December 4 (0.1%). December 31 had the lowest average sales price at $190,000.
While December is the best month to buy, there is still a 1.2% premium, which is a steep decline from June’s 7.1% premium.
The states that saw the most significant discounts before market value were Ohio (-7.4% in January); Michigan (-7.2% in February); Delaware (-6.3% in February); Tennessee (-6.2% in January); and New Jersey (-5.8% in December).
Evidence shows that existing home sales are rising as winter approaches, and the National Association of Realtors [2]reported that home sales rose 1.9% in October and overall sales rose 4.6% to 5.46 million.
“Historically-low interest rates, continuing job expansion, higher weekly earnings, and low mortgage rates are undoubtedly contributing to these higher numbers,” said Lawrence Yun, NAR’s Chief Economist. “We will likely continue to see sales climb as long as potential buyers are presented with an adequate supply of inventory.”