Pros and Cons of Winter Homebuying

Homebuyers who struggled to find a home earlier this year are taking to the market this winter despite colder temperatures and fewer houses for sale a study reports.  The report, which surveyed more than 1,300 people looking to buy a home during the winter months, reveals that lingering conditions of this past homebuying season, including inventory challenges and all cash offers, are setting the tone for winter homebuyers.  This past summer and spring homebuying season was particularly challenging for buyers, especially first-time homebuyers trying to compete with all cash offers and bidding wars because of reduced inventory.  A quarter of the winter homebuyers say they are in the market now because they were unable to find a home during this last homebuying season.  

Although the majority of winter homebuyers describe themselves as relocation buyers, downsizers are also a large portion of those looking to buy a house in the next four months, according to the report.  There are advantages to looking for a home in the winter.  Motivated sellers, better prices and less competition between buyers are some of the top reasons winter homebuyers are interested in purchasing a home during the colder months of the year.

Biggest challenges when searching for a home during winter:

• 45 percent of respondents indicated that there is not enough inventory within price range;
• 34 percent shared that there is not enough inventory on the market;
• 29 percent believe that winter weather makes house hunting unpleasant;
• 7 percent indicated that there are too many buyers in the market.

Top reasons consumers are looking to buy a home in winter:

• 26 percent of respondents believe that sellers are more motivated to sell and willing to negotiate;
• 24 percent indicated that they think home prices will be better;
• 24 percent revealed that they were unable to buy a house during spring or summer;
• 20 percent shared that they think there will be less competition between buyers.