Winter is a time for spending – not just on gifts, but on real estate investments as well.
In many parts of America, weather conditions play a huge part in the real estate market. It’s quite common for prospective buyers to visit properties more often while the weather is nice.
During the holidays, the weather is no good and most people are too busy dealing with holiday shenanigans to worry about selling/buying properties.
So, most people prefer to wait until spring to list their properties – unless of course, they are dealing with financial issues.
There are many factors that come into play which ultimately affect the real estate market – seasonal conditions being a large contributor. Let’s take a closer look at which factors make winter the best time to buy properties.
Less Competition During the Winter
Finding deals is easier when the competition is sparse. It’s likely you’ll find an owner who has listed a property out of desperation and is willing to accept the first reasonable offer put on the table.
According to the Federal Reserve, the Census Bureau, and Zillow, January has:
- The lowest median sales price at closing – at $254,914
- The highest median days on the market before closing – meaning it’s the best time to buy a home (February’s statistics are similar)
The Real Estate Market is Open Year-Round
Before the age of the internet, it was a common belief that buyers didn’t invest during fall and winter. There was much more legwork required back then. And, consequently, many property owners would remove their listings when winter came around – because they felt it was pointless.
Nowadays, the internet allows real estate investors access to the market year-round and there is no longer a need to visit each potential property in person.
Thanks to the internet, buyers are no longer limited to researching real estate properties during regular business hours. The opportunity to invest in properties online is available 24 hours a day – all year long.
Google has teamed up with the National Association of REALTORS (NAR) and reported the following statistics regarding the internet as the most beneficial marketing tool:
- The growth of buyers that utilize the internet for new home opportunities (and Homebuilders) is increasing at close to 360% each year
- More than 90% of real estate investors search online
- Over a four-year period, real estate searches have grown by nearly 255%
- Around 80% of real estate buyers visit three or more sites before acting
Potential Property’s Seasonal Benefits and Aesthetics
Some properties are most aesthetically pleasing during the fall and winter. Additionally, when investing in a home, you want to be sure it stands up to all seasonal conditions.
When viewing a property during the winter, it’s always good to know if it:
- Will be accessible if it snows
- Is well insulated
- Is completely sealed off from the cold
- Has a reliable heat source
You’re likely to overlook these things if you buy a property during the spring or summer and end up paying for it later – when you’re shivering in your kitchen, trying to stay warm by the oven.
Price Reductions
During the winter, price reductions are a common trend among property owners. A large contributor to these price reductions is the initial overpricing of properties.
In the real estate market, if a property sits for over 30 days without receiving an asking price offer, a price reduction will occur – usually out of desperation.
In comparison to spring and summer listings, property prices in the winter are noticeably less. The month of June has the highest reported median sales prices at closing ($307,571) as well as the shortest duration on the market (67.)
Helpful Tools for Investing in Properties
Real estate crowdfunding uses crowdfunding to increase capital for real estate investments. Utilizing this tool allows you to invest in a wide array of available properties while avoiding realtors, contractors, and mortgage brokers.
Fundrise is among the largest platforms for real estate crowdfunding. By using this platform, you can invest in commercial real estate deals that were previously only available to individuals with high net worth or institutions.
Today, it’s much simpler to evoke higher net rental yield, lower valuation properties across the country. And for this, we have technology to thank.
Key Takeaways
Ten years ago, it would have been a much more arduous task to find the perfect home or land for you. Thankfully, we now have the internet! So, finding potential properties is as simple as one, two, three.
Winter is a great time for home buyers! Some winter home buying perks include:
- Less competition
- Better deals
- Price reductions
You can time the market by using the calendar to your advantage.