Homebuyers looking for leverage in a still-tight housing market may find it in December, as builders step up efforts to meet fiscal-year targets, clear out quick move-in (QMI) inventory, and ramp up incentives to cap off the year.
Housing activity tends to slow at the end of the year, according to the National Association of Realtors’ seasonal analysis. Buyer traffic typically falls from December through February, reducing competition and giving remaining shoppers more time and more room to negotiate.
With fewer offers coming in, builders can move quickly to strike deals, particularly on homes that are ready for immediate delivery. Here are four reasons to consider pushing your timeline up to buy your new home before you ring in the new year.
1. Builders Ramp Up Discounts
The NAHB/Wells Fargo Housing Market Index from this time in 2024 reports that builder confidence held at 46 in December last year. According to NAHB, this tends to lead to significant price cuts and sales made with incentives.
These tactics show a concerted push to close out the year with stronger sales figures, a dynamic that enterprising buyers can take advantage of before January resets the books.
Types of Incentives:
Beyond price cuts, builders employ a range of incentives all over the country, including:
Mortgage-rate buydowns
Closing-cost credits
Upgrade allowances
Design-package bonuses
2. Builders Aim to Clear QMI Inventory
Quick move-in homes, or newly built units ready for occupancy, are a particular focus in December. These homes represent tied-up capital for builders, including carrying and financing costs.
As a result, QMI inventory often receives strong incentives at the end of the year, when builders are most motivated to convert standing units into completed sales.
With seasonal demand down, the pressure to offload this inventory intensifies, giving buyers leverage they won’t find in the spring market.
3. Home Supply Increases
Federal construction data adds another layer. U.S. Census Bureau figures show housing starts climbed sharply in December.
This activity suggests builders are entering the new year with substantial inventory, reinforcing the incentive to move QMI homes quickly during the winter months.
4. Spring Market May Bring Higher Prices, More Competition
While it’s common to wait for the spring market, NAR’s seasonal data indicates that April through June consistently produce the year’s strongest demand and highest price pressures. Buyers who delay may face:
Fewer incentives
Higher list prices
More competition, including bidding wars
Reduced negotiating leverage
In comparison, December buyers may access rate buydowns and discounts that become scarce once traffic increases.
The Bottom Line
All told, the year-end fiscal push, seasonal slowdown, large inventory, and widespread incentives suggest December offers a uniquely favorable moment for buyers, especially those considering new construction and QMI units. For households with flexibility, the winter market’s quiet conditions can translate into meaningful savings that are far harder to secure in the spring.
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