Is Winter the Best Time to Buy SFR’s?
Is winter the best time to buy single-families? According to a new report from HomeUnion, the winter “off-peak” season is the best time of the year to acquire single-family rentals (SFR’s). In fact, they found that investors pay 7.2% less per sq. ft. during the winter versus spring & summer as well as seeing a higher average cap rate. They attribute this fluctuation partly to concerns about schools – with more buying activity in the summer months resulting in higher home prices.
“Based on seasonal cap rate fluctuations, our study conclusively found that early winter is the best time to acquire SFRs,” explains Steve Hovland, director of research for HomeUnion.
The price per square foot for similar assets fluctuates 7.2 percent during the year. The change in prices can vary significantly between different markets. Source: HomeUnion.
The best seasonal bargains for investors – Winter vs Summer:
- Pittsburgh: $ 69,000 vs. $ 87,000
- San Francisco: $ 920,000 vs. $ 1.2 million
- Milwaukee: $ 70,000 vs. $ 92,000
- Philadelphia: $ 127,000 vs. $ 161,300
- Chicago: $ 128,000 vs. $ 225,000
- Columbus: $ 110,000 vs. $ 149,800
- Boston: $ 247,000 vs. $ 300,000
- Cincinnati: $ 74,900 vs. $ 115,000
- Cleveland: $ 62,000 vs. $ 80,100
- Greenville, S.C.: $ 86,250 vs. $ 140,000
Click here to read the full report.
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