Seasonality is a major factor that often goes underappreciated when it comes to property investment in Portland. Certain times of the year are friendlier to sellers, while months tend to favor home buyers. By understanding how housing market trends fluctuate throughout the year, you can give yourself an advantage as a property investor when it comes time to choose those investment properties.
In general, home sales tend to cool down in the winter and heat up during the summer. This has less to do with the weather and more to do with the yearly cycle of peoples’ busy lives. Families will often wait until the summer so that their children won’t have to move during the school year, while many people are also averse to the idea of moving during the holiday season. While weather does still play a role, the Portland housing market is less affected by weather changes than other regions in the United States with much harsher winters.
Property investment during the summer
The months that tend to see the most real estate transactions are May through August. Conversely, things slow down considerably in the dead of winter, making it much harder to sell a home. While these factors may not be make-or-break for every individual buyer and seller, they add up to meaningful trends over the long haul. As a result, Portland real estate investors can focus their efforts on certain times of the year.
If you are looking to sell your investment, you will give yourself the best price options by doing so in the summer. That is when the most buyers are on the market, meaning that you will likely see greater competition for your home. As a result, you are less likely to have to drop your asking price in order to make a sale happen when there is the most activity on the market.
Property investment during the winter
On the other hand, the winter months will generally be the best time to buy if you can find properties that are up for sale. There will be fewer buyers on the market to drive prices up, giving you less competition to land the property that you would like to invest in. Many sellers that were not able to make a deal in the summer months will lower their prices at this point as they will not want to keep their property on the market any longer. This can be a great opportunity for property investors to swoop in and make a purchase at a lower price than you’d find in the summer.
The fall and early spring months tend to offer fewer advantages on both ends of the spectrum, but you can still capitalize on property investment in Portland with a little searching. Sellers anticipating a declining market in the winter may lower their asking price in the fall, before lower demand forces them to do so. If you are looking to invest in real estate, it is wise to start looking in the fall, as the deal you are hoping for may pop up earlier than expected.
In the spring, many sellers will be holding fast to their asking price in the hopes that the rising crop of buyers are willing to pay a higher price for the home. Buyers will be anticipating more competition in the summer, and thus may be more willing to meet your asking price if they are steadfast on making a deal happen. Property investors should note that spring is the time that many homeowners will decide to put their properties up for sale.
Property investment in Portland
For those with the patience and opportunity, waiting for the right deal to come along can mean big savings. By understanding how seasonality affects the housing market, you can put yourself in a position to get the most out of your property investments. Contact Portland Development Group to begin working with experienced property investors.