Baby boomers buy more homes than millennials
Move over, Millennials — baby boomers are currently leading the way in the housing market. Even though Millennials are the nation’s largest generation, Americans between the ages of 60 and 78 currently account for 42% of homebuyers, compared to just 29% of millennials, according to the National Association of Realtors.
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The weather outside may be terrible, but if you’re thinking about buying a home, put on your boots and coat and head outside because January is bargain season, says LendingTree.
According to a financial product comparison site that analyzed the housing market from January 1, 2015 to December 31, 2024, January is the month with the highest savings. Buyers save an average of $23,400 compared to buying a 1,500-square-foot home in May, the most expensive month of the year.
Experts say the potential to save $23,400 is huge and could be especially welcome news for first-time homebuyers who don’t have to sell their home first. The National Association of Realtors said in a report released in November that the percentage of first-time homebuyers hit a record low of 21% last year, as home prices continue to hover near record highs. This is only about half the long-term average share of 38% recorded since 1981.
Buying in January can “save tens of thousands of dollars off the price of your home, allowing you to afford a home you otherwise wouldn’t have been able to afford,” said Matt Schultz, chief consumer finance analyst at LendingTree.
More savings
Shultz said lower home prices also allow for other hidden savings.
“It also makes it a little easier to get to 20% for a down payment, which is expensive,” he said. “Once you hit the magic 20% mark, you can avoid paying private mortgage insurance (PMI) and it can make a big difference in your monthly payments.”
If a homebuyer makes a down payment of less than 20% of the home purchase price, lenders typically require PMI to protect themselves in case of default. PMI costs are typically added to your monthly mortgage payment.
What if I can’t buy a house in January?
“If you’re not ready to buy a home in January, don’t worry,” Schultz said. The next cheapest month is February.
According to LendingTree, the price per square foot was $178.60 in January and $183.70 in February. From there, prices rise each month, peaking at $194.20 per square foot in May, then falling again.
Here’s a breakdown of monthly costs per square foot to help you plan your home search.
- 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?
Data shows that size doesn’t matter when considering a home in January. Median price per square foot always bottoms out in January, regardless of home size.
What are the disadvantages of buying a house in winter?
There will be fewer buyers competing during the winter, and while there may be more sellers willing to negotiate, there will also be fewer homes to consider. According to LendingTree, the number of listings from July 2016 to June 2025 was the lowest in February at 7.1 million, and the highest in July at nearly 10 million.
Buying a home in January or February “can result in significant savings,” Schultz said. “Be aware that there are risks involved. For example, there may not be as many homes to choose from, and you may not get as much money selling your home.”
Medora Lee is USA TODAY’s money, markets and personal finance reporter. Please contact us at mjlee@usatoday.com. Subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday morning.
