Is Real Estate Seasonal?

The short answer to this question is yes, real estate is seasonal, and—in general—it moves through regular annual cycles. This means that both buyers and sellers with an understanding of this can potentially leverage this to get a better deal.

However, to do this successfully, it’s necessary to have a basic understanding of both the seasonal and the cyclical changes to real estate prices, which are two different things entirely.

How to Leverage Seasonal and Cyclical Real Estate Fluctuations

• How and why is real estate seasonal?
• Other real estate market cycles

How and why is real estate seasonal?

In general, the seasonal real estate market is influenced by both the school holidays and the weather. This makes it relatively easy to know when prices might be at their lowest or highest. However, it’s important to understand that this is a very general overview and that other influences can and will impact this.

Indeed, recent times have shown that the times of the year when prices were historically lower are now times when prices are simply rising more slowly. This is thanks to the currently robust economy.

When looking at seasonal real estate prices, these tend to follow a predictable pattern:

• Q1: January-March: Prices begin to rise as the new year sees more buyers enter the market. This pushes up the prices, as construction might’ve slowed over the holiday season and there are fewer properties available to buy.
• Q2: April-June: The weather, as well as families keen to move before the new school year starts, continue to influence an upward price trajectory.
• Q3: July-September: Vacation season sees property hunters decline, and prices may begin to plateau.
• Q4: October-December: Shorter days, the start of the new school year, colder temperatures, and upcoming expenditures for the festive season typically mean fewer buyers. This equals a slow in the market and perhaps more deals to be had.

Other real estate market cycles

There are plenty of other situations that influence the housing market. These include areas, such as recession and recovery, the state of the economy, housing booms, too many houses on the market, and more.

In today’s current situation, the housing market continues to be buoyant. The job market is stable, unemployment is low, and GDP is growing. However, cycles can and do happen, and at some point, this will begin to retract and the recession-recovery period will begin. It’s at this point that real estate prices really will drop and, for the savvy, fund-rich investor, this is the time to pounce.

However, there is no guaranteed method of predicting when this might happen. However, for careful investors, real estate is always a winner. Whether you’re fixing & flipping, buying a fixer-upper, or BRRRR-ing during boom or bust, there will always be opportunities available.

The key to profiting from your ventures is not only to purchase the right property/properties, but to finance them wisely. Interest rates can vary dramatically, meaning taking the time to search out the best option for you should be the number one priority.

Get Your Finances in Place with BRRRR.com to Take Full Advantage of Seasonal Real Estate Fluctuations

If you’re in the position to structure property offers and purchases at the cheapest times of the year, then you can potentially get more for your money. For those who’re investing in a BRRRR, doer-upper, or fix & flip, then every dollar counts.

BRRRR loans have revolutionized the lending landscape over recent years, providing highly competitive loans for all kinds of property purchases. Leverage this with seasonal property prices and this becomes even more attractive.

Head to https://www.brrrr.com/ to find out more.