In just a short while, we can finally get a bit of relief from the gloom of winter: Christmas is in the air. This time of year will often bring to mind warm memories, family, and all of the festivity you wait for year-round. Real estate investing isn’t exactly top of mind when thinking of Christmas — but it should be. Christmas 2019 could very well be a good time to buy a house. If you’re buying a house for investment, the housing market is on your side this holiday season.
What Is the Most Popular Time to Buy a House?
A strikingly large number of real estate transactions take place during spring. This is because people finally escape their hibernation after months of dark and gloomy winter; the streets are more walkable, so curb appeal is maximized. Plus there’s plenty of time to find a house and make a move before the school year starts. But this can be a double-edged sword for buyers. More listings mean you’ll have more great options to choose from. But unfortunately, house prices can spike quite a bit during springtime because of this phenomenon.
When Is a Good Time to Buy a House?
The winter real estate market is much like the rest of winter: slow and a bit gloomy. Demand for real estate is usually quite low since the school year has begun and curb appeal has perished. With fewer people searching for real estate property, there will be fewer people listing their homes for sale.
However, this low general demand can work in your favor as a property buyer. Everyone is too busy celebrating to make offers on real estate — except the savvy investor, of course. Christmas is a good time to buy a house because the low buyer competition leaves many fantastic deals on the table, many of which are unlikely to be snatched up before New Year’s. This is definitely the best time to buy a house if you’re looking for real estate deals.
Related: Winter: The Best Time of Year to Buy a House
Here are a few reasons why Christmastime is the best time of year to buy a house for investment:
Lower Prices
Many sellers are afraid to put their houses on the market during winter. Common wisdom says that winter is the worst time to sell a house, and this leaves many sellers in a tough circumstance. In a bid to secure a sale, many will set lower asking prices than they otherwise would have. From the buyer’s perspective, this means lower prices across the board and even below market value property. You’re quite likely to encounter a motivated seller in the midst of winter.
Less Competition
Demand for viewings is quite low around Christmas, which makes it a good time to buy a house. Oftentimes your preferred investment property might slip away because someone else is able to make a better offer. But in the dead of winter, while everyone is deep into their hibernation, you’ll be one of the few real estate investors out and about, and you can lock in almost any property in your sight.
Room for Price Negotiation
Hands down, the biggest advantage of buying a house during Christmas is your ability to negotiate the price. There will generally be few listings on the market and few buyers looking around. This means that anyone selling a house is unlikely to be getting many offers, and bidding wars will be scarce. According to real estate market trends by the Federal Reserve, houses tend to be on the market much longer during December, January, and February. This means it’s definitely a buyer’s market and a good time to buy a house for investment. Brush up on your negotiation skills because this is a great time to find a bargain.
Since demand is low, you’re in a favorable position as a buyer when making an offer on a property and can potentially get your new property for a great discount. With regard to price, this is definitely a good time to buy a house.
Related: 8 Negotiation Tips for Buying an Investment Property
Easier to See Problem Areas
Oftentimes, houses will only reveal their problem areas months after purchase. That’s what makes winter a good time to buy real estate. Looking at homes during Christmastime will allow you to figure out if they have any issues with regard to insulation, heating, or leakages. While these issues won’t be apparent during summertime and might even make their way past a home inspector, the dead of winter can reveal everything you need to know. Not only is this a good time to buy a house, but it’s a great time to ensure its quality.
Find Tenants Quickly
If you’re buying a house for investment, the week around Christmas can be a fantastic choice for any real estate investor. January is a busy time, as many people are moving for jobs or changing housing between university semesters. Securing a high-quality property by Christmas means you’ll be ready for tenants when the January rush rolls around.
If you intend to do maintenance work on the property or make several upgrades, this also gives you ample time before the upcoming spring rush. You’ll afford yourself four months of maintenance work, and your investment property will be ready for tenants just in time. It’s a good time to buy a house if you intend to rent it out in the spring. If you’re buying a rental property, shopping at Christmastime is definitely a great choice.
How Can I Find Investment Properties on Christmas Day?
With the “For Sale” signs tucked away, many real estate investors might find it difficult to find properties during winter. Hence, you need to make sure you have the right tools to find good investment properties. Consider using an advanced real estate investment tool, such as Mashvisor. When buying a house for investment, Mashvisor’s Property Finder is your best bet. Not only will you have a multitude of options to choose from, but you’ll also be given advanced analytics. These numbers can go a long way to guaranteeing the success of your investment. Regardless of whether it looks like a good time to buy a house or not, your real estate investments should always be backed by the right math.
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Related: How to Buy Rental Property Before 2020
Bottom Line
Now is a good time to buy a house as an investor. What better way to celebrate the festivity than with a brand new investment property in your portfolio? Take advantage of the season, because it’s a good time to buy a house and a great way to start off the new year!