The winter off-peak period can be the best time of the year to acquire single-family rentals, according to a new study released by HomeUnion, an online real estate investment and management firm.
The average cap rate for SFRs during the winter months was 6 percent last year compared to 5.3 percent in the summer, the report shows. What’s more, investors pay 7.2 percent less per square foot for the same property during the winter as they do 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 SFRs,” says 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 solidly performing SFR assets in cold-weather metros…as well as in the Sun Belt markets.”
We at Landmark Group are here to help you achieve success in real estate every season of the year. We can help you buy, sell or rent residential, retail, office, wholesale or industrial property. We can also help you maintain, renovate and manage your property. Just give us a call.