Home buyers looking for a sweet holiday deal should forget about Black Friday, researchers say. Their bank accounts will be better off if they wait until Dec. 26 instead.
Yes, after-Christmas sales aren’t just good for scooping up discounted cashmere sweaters and kids’ toys. Buyers who close on Dec. 26 are likely to spend a median $2,500 less (or save about 1.3%) than they would on any other day of the year, according to a recent report from real estate information firm ATTOM Data Solutions. Overall, December is the best time to buy a home at a bargain price, as there are fewer buyers in the market.
Those savings are substantial, as buyers typically spend an estimated $7,000 more than the estimated market value of a property across all days of the year.
To come up with its findings, ATTOM looked at the median sales price on that day compared with the estimated market value compared with the rest of the year. The firm included only days on which there were at least 10,000 single-family home and condo sales nationally. (Only four days did not meet that threshold: Jan. 1, July 4, Nov. 11, and Dec. 25.)
“Very few buyers are looking for homes to buy around the holidays, which means less competition for the few contrarians out there who are buying,” Daren Blomquist, senior vice president at ATTOM, said in a statement. “Buyers and investors willing to start their home search right about when stores are setting up Christmas decorations will face less competition and likely be dealing with more motivated sellers, giving them the upper hand in price negotiations.”
But buyers need to time their offers wisely to save the most money, submitting them about a month before they plan to close. That means submitting bids right around now in order to finalize the sale around—or hopefully, the day right after—Christmas.
The other best days to purchase a home are Dec. 7, when buyers save a median $2,000; Dec. 4, at $1,823; Dec. 29, at $1,320; and Dec. 21, at $1,223.
“Great times to go out looking are all through November, particularly around Thanksgiving,” Blomquist said. “While everyone else is shopping for great deals on Christmas gifts, you could be shopping for a great deal on a home. It’s the home buyer version of a Black Friday sale.”
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Source: Housing Trends Feed