Why the Holidays Are the Best Time to Buy Real Estate
Why the holidays are the best time to buy real estate.
Like a lot of places, the weather's getting a lot colder here in Tulsa. That means our thoughts are turning towards families gathered around the dinner table, big Christmas trees with lots of ornaments, and the start of a great new year.
Oh yeah, and one other thing.... Black Friday.
Now if there's one thing that us Americans like, it's getting a good deal. Like trample-each-other-at-4-am-to-get-a-good-deal. But what if I told you that for real estate buyers, good deals come every year at the same exact time, and you don't even have to wait out in the cold overnight.
Fortunately for us, we even have a free guide to tell us when to shop. Courtesy of Federal Reserve Economic Data and the National Association of Realtors, we can see why the last few months of the year, and especially January and February, are the best time to buy real estate.
Click to view interactive graph
See the pattern? Every year, median sales prices of existing homes in the US are higher in the summer and lower in the winter months. Significantly lower, like 10%+ lower peak-to-trough.
In my personal experience, some of the best deals on investment properties can be found right around Thanksgiving and Christmas, and especially in the coldest times in January and February. It seems during these times that sellers are eager to just get the property sold, knowing that it may just languish on the market during those long winter months. And there aren't many buyers willing to brave the cold and snow to go shopping for investment properties.
So this holiday season, get on your warm weather gear, and go shopping - for real estate!
Regards,
Nate
Comments (2)
Thanks for the info Nate. While there are obviously deals year round, winter is certainly a time when the competition among other buyers thins out. This can add pressure to sellers that are motivated to sell, opening up opportunities for savvy shoppers.
I find it is also a great time to rehab a property. Peak construction season is over so there are less issues with crew availability. The grass has gone dormant so once you get it mowed one last time, it is pretty low maintenance until spring time. And just like most retail buyers, tenants prefer to move in warmer weather so I would rather have a property under renovation on January 10th vs trying to get someone to lease it. Get it under contract in December, close in January, finish rehab in February or March and have it ready to market by late winter, early spring. And by all means, work to avoid leases ending during winter months....do a 15 month lease if needed.
If exterior work is needed, that can happen as weather permits, even if after it is rented. People understand you don't paint a house or plant shrubbery during the dead of winter. I can easily show prospective tenants pictures of other properties I own and manage so they can know that as soon as weather allows, any necessary exterior issues will be addressed.
Chris Simmons, over 9 years ago
Chris, I agree with everything you have said here. The rental market, much like the sales market, does indeed slow down some in the winter as well. Closing on a property in January or February would seem to be perfect timing.
Nate Garrett, over 9 years ago