Timing is a critical aspect of buying your first home. It takes years to save for a down payment, build your credit and prepare yourself for the financial and emotional milestone that is homeownership. However, your savings schedule isn’t the only timeline to consider. A new study from Trulia shows that timing your actual house hunt opens up your search to more homes and could also help you save money on your first real estate purchase.

According to Trulia’s Q3 inventory report, peak home buying season for “starter” home buyers in the U.S. typically starts in the fall. From a national perspective, more starter homes tend to hit the market around this time of year. And, this boost in starter home inventory tends to soften home prices just a few months later, helping first-time buyers save up to thousands of dollars when purchasing in the wintertime.

Chicago real estate seasonality

Timing your first Chicago condo purchase aptly is important, but there’s no one-size-fits-all answer. Chicago first-time home buyer budgets differ drastically throughout the metro area. The phrase “starter home” is used to define a budget range which may or may not hold true for you – even while planning your first home purchase. Essentially, calculating an opportune time to buy your first Chicago condo is all about the numbers.

In the Chicago metro area, the “starter home” median list price is an affordable $106,300. Per July’s market activity, West Loop condos held a median price of $378,000. Lincoln Park condos were even steeper with a median sales price of $445,000. The point is, “starter” home buyers in the city might be considered “trade up” or “premium” buyers based on their price range when lumped in with the broader metro area.

To categorize yourself properly, time your search based on the trends within your budget. Tip: to learn how much home you can afford, use a mortgage calculator or speak directly with a local Chicago lender.

“Starter” Homes (~$106,300)

  • Most Inventory – Q1
  • Lowest Median List Price – Q1 ($92,581) 

“Trade-Up” Homes (~$219,900)

  • Most Inventory – Q3
  • Lowest Median List Price ­– Q1 ($194,349) 

“Premium” Homes (~$463,500)

  • Most Inventory – Q3
  • Lowest Median List Price – Q1 ($410,708)

Across the board, buying a condo in the winter could be an easy way to save on your first home purchase in Chicago. List prices on starter homes fluctuate approximately $3,000 between the beginning of the year and the late spring, the latter showing more expensive prices. For trade-up home buyers, prices peak in the late spring and summer, increasing $6,000 compared to the winter. Finally, premium home buyers might save close to $7,000 buying in the winter instead of the late spring.

Assume a couple plans to buy their first Chicago condo with a budget of $330,000. Based on the numbers, they will have the largest number of homes to choose from if they house hunt in the third quarter (springtime). But, if they want to save more money and see lower list prices, buying in the winter would be an ideal strategy. The preliminary steps, such as contacting a Chicago Realtor® and speaking with a lender about getting pre-approved, would start at least a few months prior, ideally in October or November.