Buying a House Before the End of the Year Might Be Your Best Chance at a Good Deal

The end of the year offers both a window of opportunity and a reality check for homebuyers.

“Back in Q1 of this year, the market was in a ‘standoff,’” says Greg Field, a Phoenix-based agent with HomeSmart. “Buyers were still shocked by the rates, and sellers were still clinging to 2023 pricing. It was tense.”

But today, he says, reality has set in: “This is a more balanced, mature, and transparent market.”

Mortgage rates have slipped below 6.2% for the first time in a year, home prices are softening in many areas, and sellers are more motivated than they’ve been in months, maybe years—all of which are helping to tip the scales toward house hunters.

“Buyers today may be in a stronger position than they were earlier in the year,” adds Michael Merritt, senior vice president at BOK Financial. “Affordability is improving.”

That doesn’t mean it will be easy. The holidays bring their own hurdles of tighter inventory, staff vacations, and slower processing times. But Ginger Wilcox, president of Better Homes and Gardens Real Estate, says that these can be manageable with the right strategy.

“With a solid plan, a trusted agent, and clear expectations, buyers can navigate the process confidently and end the year on a high note,” she says. Here’s how.

Why late-year market conditions look different

The end of the year brings a chill to more than just the air—it also cools the housing market. As homeowners turn their attention to the holidays, they’re less inclined to list their home or shop for a new one, changing the balance between supply and demand.

That slowdown can work both for and against buyers: While there may be fewer homes to choose from, there are also fewer shoppers to compete with.

“Fourth-quarter home shoppers are likely to encounter lower prices but fewer new listings compared to those who entered the market earlier in the year,” says Hannah Jones, senior economic research analyst at Realtor.com®. “However, with inventory levels higher nationwide, this seasonal drop in fresh listings may be less of a setback than in previous years.”

So while the holiday season has typically been a bust for home shoppers, the shifting landscape of 2025 may offer a rare opportunity.

Merritt notes that “inventory levels are gradually rising, but this is largely due to homes lingering longer on the market rather than a surge in new listings.” That means the homes buyers see in November and December may have been sitting for weeks (or even months), making sellers more open to negotiation.

Still, the quality of listings can vary. Many discretionary sellers—those who can afford to wait—pull their homes until spring, leaving behind properties that may need updates or price adjustments. And regional differences matter. 

In Phoenix, for example, Field says inventory always tightens between Thanksgiving and New Year’s Day, making high-quality listings hard to come by.

But for buyers who are willing and able to be more flexible with their house hunting wish list, the payoff can be huge.

Motivated sellers and negotiation leverage

The hidden upside for buyers in the slower season is motivated sellers—something the market hasn't seen in years, as sellers held all the power.

“Any seller who is on the market right now or lists in November is almost always highly motivated,” says Field. “They aren’t testing the market. They have a job relocation, a new-build home that is closing, or a personal deadline. They want this done.”

That urgency creates leverage.

“Homes that remain on the market in the fourth quarter have often been sitting for more time, which can make sellers more open to negotiation,” adds Jones. And in many markets, that negotiation power is reinforced by a softer pricing environment and fewer active buyers.

With reduced competition and sellers eager to close, buyers have more room to ask for concessions—such as covering closing costs or funding an interest rate buydown—without risking the deal. 

Rates, affordability, and timing in the market

But perhaps the biggest ace up the sleeve of buyers right now is the falling mortgage rates.

The 30-year fixed rate recently fell below 6.2% in what is being heralded as a sign of more forgiving rates to come.

“A cooling labor market and easing inflation have effectively paved the way for the Federal Reserve’s anticipated interest rate cut this week, a move already reflected in mortgage rates,” explains Jones. “As a result, late-2025 buyers may find improved affordability, both through softer home prices and lower financing costs.”

Still, buyers shouldn’t expect a dramatic “holiday sale” on borrowing costs.

“Lenders base rates on market bonds and inflation data, not the calendar,” says Field. “What we do see is a push from lenders to meet their year-end quotas. This means you might find a bit more flexibility on lender fees or a faster commitment to close, which is valuable.”

That year-end competition among lenders can translate into small but meaningful savings over the lifetime of a loan, especially for well-qualified borrowers. And with affordability gradually improving, waiting for another rate drop may not yield better results—especially if demand surges again in spring.

Tax and financial perks

If you’re able to close before Dec. 31, you may be able to sweeten the deal even more by capitalizing on tax incentives.

“By closing in 2025, you get to deduct any mortgage interest you paid (even if it’s just one payment) and any points you paid to the lender,” says Field. “Recent tax law changes are scheduled to raise the State and Local Tax (SALT) deduction cap to $40,000 for many filers for the 2025 tax year. By closing this year, you can deduct the property taxes you pay at closing.”

Those deductions can be especially valuable when combined with a strategy called bunching—prepaying certain expenses, like property taxes, before year-end to maximize your total deductions for the year. For homeowners in higher-tax states, that can mean thousands of dollars in potential savings.

Lenders also note the benefits of timing your loan closing for maximum write-offs.

“Mortgage points paid at closing may be deductible in the year the loan is originated,” says Merritt. “These scenarios could improve your tax position, especially if you close before Dec. 31.”

But these advantages depend on your unique tax circumstances, so it’s always worth running the numbers with a CPA before making a move.

And for buyers eyeing sustainable upgrades, 2025 may be a smart year to act: Several residential energy-efficiency credits for solar panels, HVAC systems, and home batteries are set to phase down or change after next year, adding one more incentive to get deals done before the clock runs out.

Making the most of a year-end opportunity

The final weeks of the year offer the gift of leverage for any buyers willing to brave them. While you may face holiday schedule delays or fewer premium listings to choose from, the current market favors the bold.

Success, however, will depend on your readiness. That means having a pre-approval in hand, a realistic timeline, and a flexible mindset.

“To close before year-end, aim to have a signed contract by mid-November,” says Neil Brooks, president of NewDay Home Realty. “Account for delays, as appraisals and inspections take longer before the holidays.” 

The payoff for that preparation can be significant: lower borrowing costs, stronger negotiating power, and financial perks that won’t be available if you wait until January. For serious buyers, it’s less about rushing to close, and more about recognizing that the smartest move might be the one you make before the calendar resets.