Homebuying during the holidays: Pros and cons experts say to know

It’s already November, and the holidays are quickly approaching. Thankfully, inflation has cooled significantly compared to recent highs (though it just ticked back up again a bit), and interest rates have been falling after the Fed’s latest move. That makes this expensive time of year a little more affordable for American consumers.

Does that mean it’s the right time to make a big financial move, though, like buying a house? There are certainly arguments for it — and also against it. If you’ve been considering whether it’s the right time to make this big move, here’s what to know. 

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Homebuying during the holidays: Pros and cons experts say to know

Here are the pros and cons experts say to consider before buying a home around the holidays. 

Pro: Less competition and lower prices

Winter isn’t typically a popular time to buy a home. The vast majority of homebuyers are active in spring and summer, hoping to buy and move into their homes before the start of a new school year. This means that those who do opt for a winter home purchase often face less competition. That can mean fewer bidding wars and an easier time winning a home. 

It also means “more negotiating leverage,” according to Smitha Ramchandani, a broker associate and director of international partnerships at Christie’s International Real Estate Group.

“In recent years, the real estate market has seen high demand and rising prices — often with buyers competing in multiple-offer situations,” Ramchandani says. “During the holiday season, many people are focused on events and travel, which can create opportunities for serious buyers. Those actively looking may be able to negotiate more favorable terms, conditions, and prices.”

Ramchandani is right about lower pricing: The median sale price for homes fell 1.1% between October and November last year and another 1.1% between November and December, according to Redfin data.

Sellers also cut prices more often around the holidays. Nearly 19% of listings in November 2023 saw a price drop, according to Redfin, and in December, it was 14%. 

“Sellers who list in the winter — especially around the holidays, are often eager to close quickly,” says Maria Avellaneda, an associate broker with Keller Williams NYC. This could “lead to price reductions or flexibility on closing terms.”

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Pro: Tax advantages

Buying a home might be expensive right now, but it also comes with a number of benefits that can help save you cash come tax season. 

“For buyers, completing a purchase before year-end allows them to claim tax deductions for mortgage interest, property taxes, and closing costs,” Ramchandani says. “This can reduce their tax burden for the current year.”

Keep in mind that you have to itemize your returns to take these deductions. This may or may not be worth it, depending on how much your deductions total up.

Pro: Easier access to the experts

Finally, buying near the holidays can often mean better service. Because real estate agents, inspectors and other parties have fewer clients, you can expect to get more attention and face time with those you choose to work with.

“Buyers might expect a higher level of attention, receptivity, and cooperation from every service provider — from brokers to finance professionals to attorneys,” says Douglas Wagner, an associate real estate broker and director of brokerage services with BOND New York Properties. “We like you in the fall, and we love you during the holidays.”

Sellers and their agents may be more attentive, too.

“In a market that is not as busy as usual, sellers and their agents are going to be eager to accommodate showings,” Wagner says.

Con: Fewer listings

Buyers are generally less active in the wintertime, and the same goes for sellers. 

“Many sellers tend to wait until after the holidays to list their homes,” Wagner says. “And if they listed previously, some sellers will temporarily withdraw their homes from the market over the holidays.”

This is especially true for sellers who still live in their homes, as they “may want to avoid the interruptions that come with being on the market during a time that is reserved for family gatherings and entertaining at home.”

This particular winter season may be slightly different due to where mortgage rates are headed, according to Bret Weinstein, founder of Guide Real Estate in Denver. 

“Mortgage rates have bounced back up a bit,” Weinstein says. “There is the expectation they will drop, but this has led to a surplus of holiday inventory right now. Most people aren’t buying and there are a ton of options and a large amount of negotiation that can take place.”

Cons: Difficulty finding service providers

When you buy a home, you typically need help along the way. You usually need an agent, a home inspector, a land surveyor, a notary and a title company, and depending on your state, you might need an attorney, too. But all these people have holiday plans as well. 

“Holiday schedules and festivities can make it challenging to coordinate with sellers, agents, inspectors, lenders, movers, contractors, attorneys, sometimes leading to scheduling conflicts or delays,” Ramchandani says. 

Ramchandani recommends being flexible and having patience, as bottlenecks can be common during this time of year. Avellaneda simply says to “plan ahead.” 

“Lining up these services early and being flexible is essential,” Avellaneda says.

Con: Added stress

Last but not least, buying a home around the holidays can be stressful at a time that’s already anxiety-ridden for many. There are gifts to buy and wrap, family members to visit and parties to host, so adding a home purchase to the mix can be a lot.

“Balancing a home purchase with holiday obligations can add a layer of stress,” Louis Adler, co-founder and principal at REAL New York, says.

For some buyers, the stress may just be worth it, though. 

“Buying a home during the holiday season may not be conventional, but it has unique perks,” Adler says.

The bottom line

Forecasts predict that lower mortgage rates are on the horizon, so some homebuyers may be tempted to wait it out and buy later in 2025. Just keep in mind: As rates drop, demand will rise, and that could send home prices up as well (offsetting any savings you get from lower rates).

Generally, experts recommend buying a house when the interest rate and numbers work for your budget and the purchase aligns with your current needs and lifestyle. If you’re not sure whether it’s a good time to buy a house for you personally, talk to a local real estate agent, loan officer, or financial advisor. They can help you weigh your options and make the best decision for your finances.