Winter Strategy in 4 Season Climate?

Question

I moved to Michigan about 6 weeks ago from AZ and all my experience is in AZ and FL. This will be my first "real" winter.

For all you seasoned 4-season investors, I'm curious what generally happens to the market this time of year. 
	
	Do sellers hold off on listings until spring? Do banks do the same? Does buying slow down more than in places without snow? I imagine rehabbing the exterior of a house would be quite difficult when the highs are in the 30s. 
	
	Do your strategies change with the seasons? 
	
	I'd love to hear your ideas.

Scott McMahan · Answer

Super helpful. Thank you guys. So less retail inventory, just as much and perhaps more discounted inventory, fewer retail and investor buyers, and trades are more available. Sounds like good times!

Scott K. · Answer

I have 5 offers that have been turned down in Warren and Centerline.  Every house I have been out bid.  I just keep looking

Mark Wolka · Answer

Joe,

Does it appear that houses are being sold to investors looking to rent or to owner-occupiers who are trying to buy at a low period?  I am looking to purchase another SFH to rent in the next year or two in a suburb north/northwest of Detroit (possibly Warren, but preferred on the west side, ie Livonia, Canton, etc.).

Joe Delia · Answer

Buying in the winter and selling in the spring is a lot of people's strategies.  The market slows down considerably in the winter around the holidays.  With the built up demand of buyers i'm curious how these next four months are going to go and if we're actually going to slow down.  From studying the latest housing report, we're moving faster than last year with less inventory.

Nicholas Davidson · Answer

Here is a funny facebook page my friend runs.  Welcome to the Mitten!  
	
	75 and sunny today and 3 feet of snow tomorrow welcome to Michigan

J Scott · Answer

I love rehabbing in the winter (despite the frustrations when weather doesn't cooperate) and I even more love selling in December...some of our best projects have been sold in December and closed right after the new year.

J Scott · Answer

Fewer retail sellers to compete with (easier to sell).  Almost as much REO inventory and less investor competition (easier to buy).  And buyers who are looking are very serious buyers, not tire kickers, so if you have a better product than the competition, things will sell quickly; conversely.

As far as rehabbing, see the other thread posted above...

Edward Burns · Answer

With rehabbing in winter, particularly in the winter, you have to be intensive in your planning while at the same time more flexible.  You need the material on hand (or know they can be gotten quickly) because Upper Midwest winter weather can have short stretches of moderate temperature (yes even 70 degrees in January) where exterior work can easily can be done.

You may want to review http://www.biggerpockets.com/forums/67/topics/105123-to-my-rehabbers-with-cold-winter-climates

which covers this topic.