When the weather turns cold, my customers inevitably ask, “Do investment property sales slow down in the winter”? There are several ways to answer that question:
Yes-I have noticed that many real estate investors will slow down there buying during the winter, just like traditional home buyers. These investors are either taking time off for the holidays or are simply absorbing what they bought during the warmer months.
No-Especially in this heavily foreclosure market, banks do not care what time of year it is. When the end of the redemption period is over, they simply put the house on the market. They are less concerned with market timing and seasonality.
What does this mean for you as the real estate investor?
With less competition, but steady inventory, winter is the best time to buy investment properties. You can usually get better deals (especially as banks want to clear their books prior to year end). You are less likely to be in multiple offer situations.
So what are you waiting for? Give us a call and see what you are missing.
2 comments
#1MN PropertiesDecember 6, 2008, 11:43 am
I know with my investors they typically try to pick up more properties during the winter months just because there is less competition and banks tend to have a year end “clearance.”
#2First Time Home BuyersDecember 8, 2008, 7:48 pm
Scott, great post. If nothing else potential investors and buyers should start looking at what’s available and their ability to buy during the “softer” real estate months. That way, when the warmer weather hits they’ll be ready to pull the trigger on their next deal.
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