Commonly, spring is thought of as the best home buying season. It turns out that this is not the case.
After reading data collected from a report done by ATTOM Data Solutions, there are only three days out of the year, all of which fall in December, where homes are sold under market value.
“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 of ATTOM Data Solutions.
The report was conducted among 23 million single family home and condo sales over the past six years. It shows buyers willing to close on a home the day after Christmas encounter discounts of .3% over expected price and a discount of .1% on both New Years and December 4.
Clearly, December is the best month to buy but you can still expect premiums of about 1.2% above market value. Thats great, in comparison to months like June, experiencing premiums as high as 7.1% above market price.
Further, the data is broken down by state. Particular months discounts were substantial. In Ohio homebuyers saw discounts as low as 7.4% under expected value in January; Tennessee, with prices down 6.2% in January; Michigan, with prices down 7.2% in February; New Jersey, with prices down 5.8% in December and Delaware, with prices down 6.3% in February.
Despite such drastic changes in premiums, buyers can expect homes to average between $197,500 – $198,000 throughout the holiday months.
“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,” Teta said. “That’s a far cry from buying during June, when they are likely paying about a 7% premium.”
Clearly, Black Friday is not the best time to look for a discount on the housing market.