Why the Holiday Season Is A Great Time to Buy A Home

If you’re on the hunt to buy a home, it may be a good idea to put it on your holiday wish list.

December is a great time to buy for a few reasons: sellers are usually more motivated to close before the end of the year, and sale prices tend to be lower compared to other months. Plus, purchasing this year could spare you from the potential increase in demand experts predict for 2026, which could push up the costs of homes.

“There’s an advantage to buying earlier rather than later, because as rates fall, prices are going to rise, generally speaking,” said Jonathan Miller, President and CEO of Miller Samuel Real Estate Appraisers and Consultants. Rates are expected to fall in 2026, though not by much, he said.

Here is what to consider when shopping for a home this holiday season — and which lenders to go with if you’re looking for a speedy closing. 

Data from real estate platform ReAlpha shows that sellers will accept offers 1.8% below the listing price on average during December. In addition, they are more willing to pay closing costs for the buyer (an average of $5,000), or to provide repair credits to the buyer more often than they would at other points in the year, according to ReAlpha. 

 “Sellers that are in the market at this time of year tend to be highly motivated, much like the buyers who are in the market at this time of year,” Realtor.com chief economist Danielle Hale told CNBC Select. 

Historically, December has been tied with September as the third-cheapest month to buy a home, according to LendingTree. January and February take the top two spots, respectively. 

In December 2024, the most recent data available, the average price-per-square foot was $187.40. In May of the same year, the average price-per-square-foot was $194.20, the most expensive month. 

Most of the price differential is due to demand. 

There are, on average, between 35% and 50% fewer buyers in December than in other months, according to ReAlpha, meaning much less competition overall. 

Realtor.com anticipates that median home prices will rise 2.2% over the course of next year. For context, the national median price of a home as of November is $424,200, per Realtor.com and a 2.2% increase would bring that amount to $433,532. Meanwhile, Realtor.com’s team of economists predict rates will reach 6.3%, down a tad from the mid-6% range of 2025, and that sales overall will increase by 1.7%. 

“Rates are going to trend lower, not drop,” Miller said. “So people who are waiting for rates to be a lot lower are going to be disappointed, because rates aren’t going to fall that much.”

To be sure, holiday home shopping is not ideal for everyone. There are fewer listings during this time of year, Realtor.com’s Hale told CNBC Select. 

“It’s important to know what you need out of the housing market to figure out the best time for you,” she said. “If your tastes are really specific — say, you know exactly what neighborhood you want to be in, and you know there aren’t very many homes that fit your criteria —  always keep your eyes open, because you never know when the home that is right for you is going to hit the market.” 

Plus, it may take longer to close on your home, Hale said. 

“It is worth keeping in mind that if you make an offer and it gets accepted, you have to work with a lot of people to go from offer to closing,” Hale said.  “With holiday closings, you might have to work around that a little bit as you go through the process, so it may take longer than usual.” 

We chose SoFi as the best lender for on-time closing because it offers a guarantee with a credit of up to $10,000 if the lender fails to close when it says it will.

But it may not be a great choice if you’re keen on meeting your lender in person, as SoFi doesn’t have any physical branches. It also does not offer USDA loans. 

PrimeLending is also known for its speedy closing time. It says it will close on mortgages in 21 days and will offer up to $5,000 if it fails to do so. 

However, it may be hard to tell whether PrimeLending is the right match for you because it does not post its rates or requirements online.

Either way, if your priority is getting the best deal available, a holiday home purchase can be a great way to achieve that goal. 

To see how much your monthly payments would be with a home on the market right now, input your information and information about the listing into our mortgage calculator. 

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