Buying a home in 2026? Why January is the best month for savings.
Updated Jan. 6, 2026, 5:17 p.m. ET
The weather outside might be frightful but pull on your boots and coat and get out if you’re looking to buy a home because January is the month for bargains, LendingTree says.
January offers the biggest saving, according to the financial products comparison site that analyzed the housing market between Jan. 1, 2015, to Dec. 31, 2024. Buyers can save an average of $23,400 compared to those who purchase a 1,500-square-foot home in May, the most expensive month of the year, it said.
Potentially saving $23,400 is significant and could be especially welcome news for first-time home buyers who don’t have to sell a home first, experts said. Last year, the share of first-time homebuyers reached a record low 21% as home prices continued to linger near record highs, the National Association of Realtors said in a report released in November. That’s only about half the long-time average share of 38% in records going back to 1981.
Buying in January “can shave tens of thousands off the cost of the home, making something affordable that might not have been otherwise,” said Matt Schulz, LendingTree’s chief consumer finance analyst.
Additional savings
The lower home price can also unlock other hidden savings, Schulz said.
“It can also make it a little easier to reach 20% with a down payment, which is huge,” he said. “If you reach that magic 20% mark, you can avoid paying private mortgage insurance (PMI), which can make a major difference in your monthly payments.”
Lenders generally require PMI when a homebuyer makes a down payment of less than 20% of the home’s purchase price to protect themselves in case of default. PMI costs are typically added to your monthly mortgage payment.
What if I can’t buy a home in January?
Don’t worry if you can’t get yourself together to buy a home in January, Schulz said. February is the next least expensive month.
Price per square foot in January is $178.60, followed by February’s $183.70, LendingTree said. From there, prices rise every month, peaking at $194.20 per square foot in May before easing again.
Here’s the breakdown of each month’s per-square-foot cost to help with your house-hunting plans:
- January: $178.60
- February: $183.70
- March: $187.90
- April: $190.50
- May: $194.20
- June: $193.40
- July: $190.30
- August: $189.70
- September: $187.40
- October: $189.40
- November: $188.10
- December: $187.40
Does size matter?
Size doesn’t matter when looking at homes in January, data show. Median prices per square foot always bottom out in January, no matter what the home size.
What’s the downside to home buying in the winter?
There may be fewer buyers to compete with and more sellers willing to negotiate during the winter, but there are also fewer homes to consider. From July 2016 through June 2025, February had the fewest listings at 7.1 million and July had the most at nearly 10 million, LendingTree said.
When buying a home in January or February, “savings can be significant,” Schulz said. “Just know there’s risk involved. For example, there may not be as many homes available to choose from, or you may not get as much money for your home when you sell.”
Medora Lee is a money, markets and personal finance reporter at USA TODAY. You can reach her at mjlee@usatoday.com and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday morning.
