Opendoor studied 53 markets to see how weather impacted buyer behavior and found little correlation between weather and real estate seasonality. (iStock)
Winter may be the best time to snag a deal when it comes to buying a home, according to a recent blog by digital real estate platform Opendoor.
Opendoor studied 53 markets to see how weather impacted buyer behavior and found there wasn’t much of a “correlation between weather and real estate seasonality.”
Buyers who have traditionally put off their home search until spring or summer may not have to wait to find the best prices, according to the blog.
“Our data shows that average prices across economic cycles are the lowest in January, meaning buyers could find homes at lower price points,” Opendoor chief customer officer Megan Meyer Toolson said. “Buying a home is one of the largest financial decisions you’ll make, so I always advise buyers to do what’s best for them – not rushing or waiting for the ‘right’ time of year.”
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These cities are least affected by seasonality
Phoenix, Knoxville, Miami, Oklahoma City and Salt Lake City are the top five least seasonal markets, according to Opendoor data. These cities experience fewer shifts in home price appreciation, allowing buyers to find deals throughout the year.
“The traditional notion that there’s a ‘good’ and ‘bad’ time to buy or sell a home isn’t as applicable in these places,” Meyer Toolson said. “It’s surprising to see a market like Salt Lake City on that list, given how cold the winters can be.”
By contrast, the five cities with the most seasonal real estate markets are Asheville, Birmingham, Houston, Jacksonville and San Francisco, according to Opendoor.
“Even though cities like San Francisco and Jacksonville tend to have temperate weather, we found they experience higher seasonality in terms of price changes for homebuyers and sellers,” Meyer Toolson said.
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Mortgage rates react to improving inflation
The pace of inflation has begun to slow over the past few months, and some economists said that it may have peaked. That has contributed to the recent decrease in mortgage interest rates.
At the same time, home prices have started to cool. Median home-sale prices rose 1.4% annually, “the slowest growth rate since the start of the pandemic,” according to Redfin.
“Slowing inflation and the hope of the Fed easing rate hikes in the new year are likely to bring mortgage rates down further and thereby improve homebuying demand,” Redfin Deputy Chief Economist Taylor Marr said. “But don’t call it a comeback or even a recovery yet; demand is still way down from its peak.”
If you are looking to purchase a home or refinance your current loan, you can consider an online marketplace like Credible to compare your options. Visit Credible to compare multiple mortgage lenders at once and find the one that is the best fit for you.
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