See the advantages of winter listings

To get our average savings, we looked at the lowest winter prices (December through February) and the highest summer prices (June through August) for the last five years and calculated the average difference. This gave us an average discount of 8% for winter purchases compared to summer, confirming that the longtime trend of lower winter prices still holds.^Footnote1

This could be good news for homebuyers who are struggling to find an affordable home.

Of course, the average doesn't tell the whole story. As you might expect, cold-climate metros in the Rust Belt and Northeast have the deepest percentage cuts in home prices, with Toledo (−18.8%), Detroit (−18.2%), and Bridgeport–Stamford (−17.6%) at the top of the chart. On the other hand, Sun Belt markets like El Paso (–0.5%) and much of Florida barely discount at all. Knowing your own market's seasonal patterns is critical for guiding your clients to the best deal.

Interestingly, the percentages and the dollar savings tell different stories. A modest-looking percentage discount in an expensive market can dwarf a steep percentage cut elsewhere. For instance, San Francisco's 14% discount and Bridgeport's 17.6% discount translate to roughly $150K–$165K below peak prices, the largest dollar savings in the country. By contrast, Toledo's seemingly robust 18.8% discount amounts to only $40K in savings.

For clients looking for affordable options, dollars saved on the list price can mean a lower down payment or lower monthly payments.

With home prices already rising at a lower rate than expected,^Footnote2 a winter discount could make buying even more affordable. Plus, winter buyers often hold more leverage. Homes sit longer (about 65 median days on market versus 45 in summer),^Footnote1 so sellers who list in winter can be more willing to negotiate. Sellers who list in winter also may be driven by job or family concerns that make them highly motivated to sell.

In addition, although there may be fewer homes to choose from, there is also less competition from other buyers. That means they're less likely to get caught in a bidding war that will drive up the price. Fewer buyers may also mean that transactions will move faster due to lower volume.^Footnote3

To keep your business moving, refresh your client list by reconnecting with buyers who may have gotten frustrated by summer prices, competition or other reasons. This could be a great time to restart their search. A few tips for helping buyers:

• Guide price expectations. Even if your local market tends to have lower prices in winter, buyers shouldn't expect huge discounts across the board. Underbidding could mean losing a great home.
• Understand their timeline. Since the selection is more restricted in winter, if they can wait for spring, they may have more options.
• Avoid rushing into a deal. A reduced price could mean the home has been on the market for a while. Buyers should take the time to examine homes carefully to be sure there are no unpleasant surprises.
• Negotiate concessions. While they may not lower the list price, a motivated seller may be willing to offer other concessions such as repairs or cash toward closing.

Lower prices may be great for homebuyers, but what about sellers? The good news is, there's no reason to despair. Sellers may not get the top price in January that they could get in June, but with your guidance, a good home can get a fair price.^Footnote4

• Less competition. With fewer listings, sellers have a greater opportunity to make their house stand out.
• Motivated buyers. While it's true that many sellers are highly motivated in winter, the same goes for buyers, who may have deadlines for a job or family situation.
• More showing opportunities. Winter holiday weekends like MLK Day and Presidents Day give buyers more time to shop and sellers more open house options.

While there can be benefits to selling in winter, there are also challenges, including dreary weather, lowball offers and tougher negotiations. Your help can make a big difference for your clients. A few tips:

• Price to sell. Smart pricing means less chance they'll have to accept a lower offer.
• Understand their timeline. Can they wait until spring to get the price they want, or do they need to move right away?
• Analyze stale listings. If the home has been on the market for months, it's time to figure out why. Is it the price, the condition of the home, or some other factor?
• Set the stage. In colder climates, staging is even more critical. The yard should be clean, with no ugly plant clutter, and icy walkways cleared. Consider some spotlights to create a warm, inviting glow. Inside, think warm and cozy, with plenty of light.

With your help, both buyers and sellers can find success, no matter what time of year.