Buying in January Could Save You $23,000 — Here’s Why Bay Area Buyers Are Taking Advantage

Buying in January Could Save You $23,000 — Here’s Why Bay Area Buyers Are Taking Advantage

If you’ve been waiting for the right time to buy a home in the Bay Area, this might be your moment.

Mortgage rates hovering near 6% are motivating buyers to jump back in — but January could offer an even bigger advantage. According to a LendingTree study, buyers who purchase a 1,500-square-foot home in January could save an average of $23,000 compared to those who buy in May.

Why January Is a Smart Month to Buy

Real estate experts agree that the first month of the year often brings the best deals and least competition.

“My clients who get the best prices usually buy in December or January,” says Matt van Winkle, Compass agent. “During those months, sellers who are still on the market are more motivated — and there’s less competition.”

January’s median home price per square foot was 8% lower than May’s, according to LendingTree data. That translates to thousands in potential savings, especially in high-cost areas like Silicon Valley or the Peninsula.

Neil Brooks, president of NewDay Home, adds that “January is one of the best times to buy because buyers have more leverage — fewer bidding wars mean more room for negotiation.”

That can mean:

• Better purchase prices

• Seller concessions or repair credits

• Help with closing costs

Market Trends Point Toward Opportunity

Realtor.com’s December 2025 Market Trends Report showed a slight 0.6% dip in median home prices to $399,950. Meanwhile, active listings are up 12.1% year over year, giving buyers more choices — but still 12.5% below pre-pandemic levels, meaning good homes can move fast.

Compass agents across the Bay Area are already seeing renewed activity from motivated buyers and sellers eager to start the year strong.

“January buyers often get a jump on spring,” says Dan O’Brien of Trueblood Real Estate. “Listings sit a bit longer, sellers are open to negotiating, and you can still beat the big rush.”

What This Means for Bay Area Buyers and Sellers

For Bay Area homeowners, the start of the year offers a window of opportunity.

• Buyers can find motivated sellers and less competition.

• Sellers can connect with serious buyers who want to close before the spring surge.

Whether you’re eyeing San Jose, Fremont, Sunnyvale, or anywhere in between, January could be the month to make your move — before prices and competition heat back up.

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Insights originally shared by Realtor.com. Local perspective and commentary by Yvonne Yang, Top Bay Area Realtor®.