It might not be a surprise to you that the winter real estate market differs from that of different seasons. Smart real estate investors have researched real estate seasonality trends well and use them to their advantage. They know that there are times during the year when it is best to buy an investment property and other times when it is best to sell.
The winter real estate market in the US is the absolute best time to buy property for real estate investors. Mashvisor breaks down the trends of a winter real estate market that make it the best time of the year to buy a house for investment.
Sellers Are Eager in the Winter
Real estate investors know that the winter real estate market can be the worst time for a seller. However, it is also the best time of year for buying an investment property in the US housing market. If anyone has put up their home for sale during the winter months, it often means they are rather desperate to sell. And typically during this time of year, these sellers aren’t receiving multiple offers on a house. This means that sellers are much more open to making deals.
Bring out your best negotiation skills and low ball the offers during the winter. Odds are you will get a much better price for the investment property of your interest during this time.
Related: 8 Negotiation Tips for Buying an Investment Property
Prices Are Lower in the Winter Real Estate Market
The winter real estate market is the best time to invest in real estate, especially for beginner investors. That’s because, even if you aren’t the best negotiator, it can be pretty easy for you to find a good deal during the winter. This is due to the fact that prices are significantly lower at this time because property sellers want to get rid of their homes. As a property buyer, this means finding an investment property within your budget that meets your standards will be pretty easy.
Less Competition During the Winter
One of the best things about buying an investment property during the winter is the lack of competition. Most property buyers are busy with the holidays or taking time off. Homebuyers have likely done their house hunting in the spring.
Fewer buyers in the market means it is easier for you to browse properties and take your time without worrying about the investment property being sold. It also gives you the ability to low-ball your offers because, as mentioned, odds are the property seller is not receiving any offers at this time.
Great Time to Inspect a Property
The winter time brings out the absolute worst in any building. This is bad for property sellers, but it is great for you as a potential property buyer. The winter time allows you to inspect any leaks, poor ventilation, problems with the furnace, and much more. On top of that, the investment property simply looks gloomier during the winter time. This means that your purchase will be based more on logic than on your attachment to the property.
Related: Why You Should Get a Home Inspection Before Investing In Property
Loans Are Approved Faster
During the winter time, there are a lot fewer transactions and paperwork taking place in banks for mortgages. This means that banks are much more willing to approve your loan, and they will do it much faster than in any other season. This means you will be able to close deals much faster than any other time of the year. Closing on your rental property quickly means being able to bring in rental income much faster!
Better Service from Your Real Estate Agent
One of the absolute best perks of buying real estate investments during the winter is the better service offered by real estate agents. The lower number of sellers and buyers during this time means less work for real estate agents. This means you will get a lot more attention from your real estate agent. He/she will be working extra hard to make sure to find a property that is within your budget and matches all your requirements.
Find a top-performing real estate agent in the US right now.
Fewer Properties on the Market
One of the downsides of investing in the winter real estate market in the US is the lack of housing inventory. Less property on sale means it might be harder to find a property that meets your requirements.
However, if you learn to use real estate investment tools correctly, this will not be an issue. These tools, like the ones offered by Mashvisor, will allow you to look up investment properties in the area you like based on your requirements. The heat map tool will show you where the best places to invest are and the investment property calculator will give you information about the expected expenses and income from these properties. Sign up to try them out now.
2019 Winter Real Estate Market Trend: Mortgage Rates Are on the Rise
A trend specific to the 2019 winter real estate market that makes it the best time to invest in real estate is the expected rise in investment property mortgage rates this year. This means you will be buying property with a lower mortgage rate and at a lower price. If you were already thinking of investing in real estate this year, it is best to do it at this time to make the most out of the winter perks.
Related: US Home Sales Fall Thanks to High Mortgage Rates
If you are thinking of investing in real estate in 2019, there is no better time to do it than right now! Real estate market trends historically have shown that income properties are much cheaper during the winter real estate market. However, before making any decisions about a property, make sure you research the best investment strategy to use at this time.
To start looking for and analyzing the best investment properties in your city and neighborhood of choice right now, click here.