Todd Teta, chief product officer of ATTOM Data Solutions claims, “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.” Although, some might think spring is the prime time for house shopping. December is the time to buy.
Analysis from his company shows that there are only three days in the year where homes are seen being sold below market value. All of which occur in December.
The report shows discounts of .3% over sales price the day after Christmas and discounts of .1% on both, New Years Eve and December 4. This study was determined with more than 23 million single family home and condo sales over the past six years.
If you haven’t found a home on one of these days, analysis shows December is the overall best month to buy with a stay pay premium 1.2% above market value. Which in comparison is better than any other month with premiums as high as 7.1%.
Throughout the year, home prices hover around the same median despite the drastic jump in premiums; $197,500 in October; $198,018 in November; $198,000 in December.
Moving away from yearly averages, and breaking it down by state shows homebuyers in Ohio experiencing the largest discount below market value, buying at 7.4% below market value in January. In Michigan, with prices down 7.2% in February; Delaware, with prices down 6.3% in February; Tennessee, with prices down 6.2% in January and New Jersey, with prices down 5.8% in December.
Teta explains, “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.”