The real estate business is seasonal by natural. Prices, demand, and inventory tend to fluctuate at different times of the year. In certain cases, real estate markets can even quickly transition from a buyer’s market to a seller’s market. So the question that real estate investors should be asking is “What is the best time of the year to invest in real estate?” We’ll explore the answer to this question in detail and go over the fall real estate market as we’re rounding out the summer of 2019.
The Signs of a Good Real Estate Market for Investors
Making money in real estate is only achievable if you invest in a housing market that boasts all the right conditions. In other words, market trends have to be favorable to the buyer. Real estate markets that completely lean toward the seller are harder to navigate and are better left to experienced real estate investors.
Here are some of the main signs of a promising market:
- A housing market where bidding wars are less likely
- Financing is affordable and easy to obtain
- Buyers have some leverage in negotiations
So is it a good time to invest in real estate? Let’s answer this question by looking at some encouraging fall real estate market trends.
Fall Real Estate Market 2019: The Trends You Need to Know About
Before buying a house in the fall, there are several trends you need to be aware of. This season has many particularities that make it an interesting time for real estate investments. In any case, here are the fall real estate market trends you can expect this season.
1- There will be less competition
One of the perks of buying an investment property in the fall is a low competition that characterizes the housing market. In fact, autumn is generally seen as an off-season by industry experts. From a buyer’s perspective, this is very convenient since it puts them in a position of power when it comes to negotiation. As property sellers attempt to offload housing inventory, savvy buyers will be able to dictate the terms of the real estate deal and drive house prices down.
2- There are valuable tax benefits to investing in the fall
Investing in real estate is one of the most effective ways to get tax breaks. More specifically, making an investment in the fall will allow you to reduce your taxes just before the end of the year. You will be able to reduce your tax bill by deducting property tax and interest on your loan.
3- Interest rates will remain low
One trend that dominated the real estate market this year is low mortgage interest rates. This climate is ideal for real estate investors due to the low cost of credit and ease of financing. While the Fed has expressed a desire to raise interest rates later this year, the changes won’t take effect until next year. This is why it’s crucial to get in this fall before the incremental increase kicks in.
4- Finding undervalued investment properties will be easier
A common fall real estate market trend is an increase in the number of sellers who are likely to accept low offers. The reason for this is quite simple. Generally speaking, people who list their property for sale in the fall are often undertaking major changes in their lives. This can be anything from changing jobs to moving to a new home. As a consequence, these sellers tend to be more pressed for time and more likely to offload their property for less than market value.
5- Housing inventory will slightly improve
Another encouraging trend that is slowly emerging is the slight improvement in inventory. While demand remains higher than supply, there seems to be a slight incremental increase in the housing inventory relative to last year. As a matter of fact, recent data shows that inventory has risen by 1.2% in the past months. The trend will continue heading into 2020, most notably in major markets like the Los Angeles housing market and the San Jose housing market.
3 Tips for Property Buyers in the Fall
Buying an investment property in the fall seems to be a great choice based on the previously mentioned trends. However, it still requires the same level of due diligence as any other time of the year. Having said that, it’s worth noting that there are some best practices that are especially effective this time of year.
1- Do a proper inspection of the maintenance areas
This season is the perfect time to check the condition of the maintenance areas of the real estate property. For example, visiting the investment property on a rainy day will allow you to inspect the condition of the gutter drainage as well as the upkeep of the yard. Maintenance area issues are often hard to detect in other seasons.
2- Make low-ball offers
Like we mentioned earlier, buyers have some leverage in the fall real estate market. Real estate investors shouldn’t hesitate in exercising this leverage. You should be aggressive when negotiating deals and don’t shy away from making a low-ball offer. There is a good chance that a worn-out seller will accept the offer.
3- Use dedicated tools to find the ideal investment property
You shouldn’t leave anything to chance when investing in the fall real estate market. The property acquisition should come after thorough market analysis and a comprehensive search. Luckily for you, Mashvisor has the right tools that can help you achieve this. For example, the Property Finder is an effective tool that allows you to find investment properties for sale that fit your criteria. In addition to this, you can use the Mashvisor Property Marketplace to gain access to thousands of off-market properties. Keep in mind that many sellers end up taking their properties off-market after failing to sell them in the summer. Off-market listings are therefore an option worth exploring.
The Bottom Line
The US housing market 2019 trends have been generally encouraging, and this fall real estate market is no exception. The market looks ripe for growth and real estate investors shouldn’t hesitate in capitalizing on the upward trend.