When you are buying real estate primarily as an investment, the timing of any offer you make may depend on more than one factor. You may have to figure out financing or perhaps whether or not a partner or spouse is in agreement with your ideas. Of course, barring any obstacles, you have the luxury of making an offer to a seller whenever it suits you. But is there an optimum time of year to invest in real estate?
The timing of your real estate investment is partially contingent on what is available. Is it your intent to investing in commercial property? If so, the timing of your purchase may hinge less on the season and more on the size of the city you live in and how many commercial properties are listed for sale at any given time.
But let’s say you are interested in residential real estate instead. If that is the case, you might want to consider investing in a property in the spring or summer months when you have more selection. This is especially true if you need a very specific size of home to invest in or if you need the property to be in a certain location. Because families tend to wait until spring or summer when school is out to sell their homes and move, the housing market has a surge in the number of homes for sale during those months. You can be choosier when you have a greater selection, so the spring or summer months might be the best time for you to invest.
On the other hand, if you have only a limited amount of money to invest in real estate you may be more concerned with getting the best deal you can. If that is the case, finding the right time of year to invest when prices are at their lowest could be more important to you than availability. Consider investing during the late fall or winter months when there are fewer homes for sale. During these months housing prices tend to dip somewhat as home owners who must sell drop their asking price in order to attract buyers.
The area in which you intend to invest can have an effect on whether or not there is actually an optimum time to do so. Consider cities and towns with a large population of tourists at any given time. Housing prices are naturally going to be higher in those areas and the seasonal fluctuations other cities experience may not exist there. If that is the case, prices may remain steadier throughout the year with no one month or season being better than other as far as price or availability.
In order to open up your options a little more on location as well as price and availability, you could consider buying in a town other than the one in which you live. It is possible to do so and may be just what you need in order to get the greatest value for your investment.
When you are investing in real estate, it depends on your particular needs as to whether or not there is an optimum time of year to do so. Consider the information above to help you arrive at the decision that is the best for you.
Kayla is a personal finance blogger in her mid-20s who loves to write about money topics of all kinds.