Holiday Homebuying: When you think of December, you likely picture holiday shopping, family gatherings, and year-end deadlines. Buying a house probably isn’t at the top of your to-do list. The common wisdom suggests that spring and summer are the prime seasons for real estate, while winter is a time for hibernation.
However, real estate experts suggest that overlooking the winter market might be a costly mistake. While the inventory may be lower, the financial incentives for buying a home during the holidays can be significant. From motivated sellers looking for tax breaks to a surprising dip in competition, December offers a unique window of opportunity for savvy buyers.
If you are currently on the fence about whether to sign a contract now or wait until the new year, the data suggests that acting sooner might save you money. Here is why putting a new home on your holiday wish list could be the smartest financial move you make this year.
Holiday Homebuying: Sellers are ready to make a deal
One of the distinct advantages of house hunting in December is the psychology of the seller. If a homeowner has their property listed during the holidays, it is usually because they need to sell, not just because they want to test the market.
Jonathan Miller, President and CEO of Miller Samuel Real Estate Appraisers and Consultants, notes that sellers active in December often want to close before the end of the year. This urgency can stem from a desire to finalize the transaction for tax purposes or simply to start the new year with a clean slate.
Because of this motivation, December sellers are statistically more likely to accept a lower offer. Data from the real estate platform ReAlpha indicates that, on average, sellers accept offers 1.8% below the listing price during this month.
While that percentage might seem small on paper, it translates to thousands of dollars in savings on a typical mortgage.
Beyond the purchase price, sellers are also more generous with concessions. ReAlpha’s data shows that December sellers are more willing to pay for the buyer’s closing costs—averaging around $5,000—or provide repair credits. In a market where every dollar counts, these concessions can make the difference between closing the deal and walking away.
Less competition means lower prices
If you have tried to buy a home during the spring rush, you know the frustration of bidding wars. The holiday season offers a refreshing change of pace.
With many potential buyers distracted by holiday festivities and travel, the pool of competition shrinks dramatically.
ReAlpha reports that there are between 35% and 50% fewer buyers in the market in December compared to other months.
This drop in demand has a direct impact on pricing. Historically, December ties with September as the third-cheapest month to buy a home, trailing only January and February.
Recent data supports this trend. In December 2024, the average price per square foot dropped to $187.40. Contrast this with the peak month of May, where the average was $194.20.
For a 2,000-square-foot home, that difference in price per square foot represents a significant reduction in the total purchase price.
Waiting for 2026 might cost you more
A common strategy among potential homebuyers is to “wait out the market,” hoping that mortgage rates will crash or home prices will drop significantly. However, forecasts for 2026 suggest that waiting might backfire.
Experts predict that housing affordability won’t necessarily improve in the coming years. Realtor.com anticipates that median home prices will rise by 2.2% over the next year.
If the national median price hovers around $424,200, a 2.2% increase would push that price tag up to over $433,000.
Furthermore, while everyone hopes for a return to rock-bottom interest rates, the reality is likely to be more moderate. Economists at Realtor.com predict rates will settle around 6.3%.
Jonathan Miller warns that while rates are expected to trend lower, they aren’t going to freefall. “People who are waiting for rates to be a lot lower are going to be disappointed,” Miller said.
Essentially, waiting involves a gamble: you might get a slightly lower rate in 2026, but you will likely pay a higher price for the property itself due to increased demand and appreciation. Buying now locks in the current price before the predicted 2026 uptick.
The challenges of holiday house hunting
While the financial arguments for buying in December are strong, there are logistical hurdles to consider. The holiday season is not business as usual, and the real estate market is no exception.
The most obvious drawback is inventory. As Danielle Hale, chief economist at Realtor.com, points out, there are simply fewer homes on the market this time of year.
If you have very specific criteria—such as a non-negotiable neighborhood or a specific architectural style—you might not find what you are looking for in December.
Additionally, the process can be slower. Real estate agents, inspectors, and loan officers take time off for the holidays just like everyone else.
Coordinating showings can be difficult, and the administrative side of closing a deal can face delays. “With holiday closings, you might have to work around that a little bit,” Hale noted.
Accelerating the closing process
If you decide to take the plunge this December, choosing the right lender is crucial to navigating the holiday slowdowns. The average time to close on a house is about 42 days, but some online lenders specialize in speed, which can be a major asset when trying to beat the year-end clock.
Lenders known for speed
If a fast closing is your priority, look for lenders that offer guarantees on their timelines.
- SoFi: Recognized for its efficiency, SoFi offers a guarantee that pays out a credit of up to $10,000 if they fail to close on time. However, keep in mind that they do not have physical branches, which might be a drawback if you prefer face-to-face interactions.
- PrimeLending: This lender claims they can close mortgages in as little as 21 days—half the industry average. They back this up with a $5,000 offer if they miss the deadline. Note that they do not publicly disclose their credit score requirements or rates online, so you will need to contact them directly to see if you qualify.
Unwrap your new home before the New Year!
Buying a home during the holidays requires a bit of strategic maneuvering, but the rewards can be substantial. You face less competition, gain leverage with motivated sellers, and potentially secure a lower price than you would in the spring.
While the selection of homes might be slimmer, keeping your eyes open could lead you to the perfect property just as others are stepping back from the market.
By moving quickly and choosing a lender that can keep up with your timeline, you could ring in the New Year with the best gift of all: a new set of keys!