The owner-occupied housing market tends to pick up steam in the late spring and early summer months. Parents typically have school quality in mind, and are shopping around for homes and visiting open houses in their preferred public school districts after the winter thaw. Homebuyers can expect to bid higher on real estate investment properties in order to remain competitive during this time of year. A shortage of inventory in many major metros since 2013 has further heightened competition for quality properties. Single-family rental (SFR) investors face similar challenges, at least according to research from HomeUnion® Research Services. For the past two consecutive years, buying SFRs has proven to be more expensive in the spring and summer months than in the winter. Without question, the best seasonal bargains for investment housing are found in the winter off-peak months. Nationally, the average cap rate for SFRs during the winter months of 2017 was 6 percent, compared to 5.4 percent in the summer of 2017. In addition, investors paid 6.6 percent less per square foot for the same property during the winter of 2017 as they did during the spring and summer buying season.
“Based on seasonal cap rate fluctuations, our study conclusively found that early winter is the best time to acquire single-family rentals,” explains Steve Hovland, director of research for HomeUnion®. “In many metros, median home prices drop substantially during the colder months, while rent losses were marginal for investors.
Winter is the perfect time to acquire SFR assets with solid yields in cold-weather metros such as Chicago, as well as in the Sun Belt markets of Atlanta, Charlotte, Dallas and Tampa. For properties that need a little TLC, a winter purchase can give contractors ample time to bring the property up to a level that maximizes rents as the spring renting season commences.
Here’s a complete list of 8 best winter housing market bargains currently on our platform:
|Metro Area||Cap Rate Increase||Temperature Spread||Winter Price||Summer Price|
|Charlotte, N.C.||13.7%||37 degrees||$127,000||$155,000|
|Greenville, S.C.||4.6%||36 degrees||$115,000||$120,000|
To view all of our available properties this winter, from newly constructed assets to fully tenanted properties, register on our website today.