When Is the Best Time to Invest in Home Development?

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Investing in real estate property requires careful timing to acquire fair-price properties. Savvy real estate investors understand the law of supply and demand.

Most volume home builders open their communities for sales in the spring and summer to increase market awareness and demand. However, this activity begins to slow down as winter approaches.

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Spring

As the sun begins to shine and the flowers begin to bloom, home buyers are looking to put down roots. The spring season offers several key benefits for those looking to buy and sell homes or invest in new construction housing developments.

The best time to invest in home development is spring and summer. This is when the demand for homes in the area is highest. It creates a buyer’s market and can lead to higher prices.

New construction properties like Your Home Wichitaalso offer greater value than existing homes, as they’re built in a brand-new neighborhood and tend to be closer to schools, restaurants, shopping centers, and other amenities. These factors can contribute to a rise in property values over time, making them an attractive investment option for investors seeking a return on their money.

Another advantage of investing in new construction properties in the spring is that it’s typically less expensive than buying an already-existing home. This is because builders want to move their inventory quickly and avoid the cost of maintaining unsold properties on their books, which can be costly when working with borrowed funds. Additionally, volume home builders are often publicly traded companies with sales quotas they need to meet, so purchasing at the end of the builder’s fiscal year can be a great way to save.

Summer

The summer months can be a great time for new development investment. This is because the homes are often designed for downsizers who want to increase property size and who will be more active during summer. It will mean that they are less likely to be impacted by buying trends around school holiday periods and can view properties quickly and make decisions on the go.

The other reason summer is a good time to invest in new development projects is because many more properties are usually available. Home builders typically try to release the properties for sale as soon as possible, normally when a development has just opened. Home builders often work with borrowed money and want their unsold inventory to stay on their books, which would cost them interest.

Another benefit of investing in development at this stage is that it is usually cheaper than when the properties are fully finished. This is because the developer can offer buyers various incentives and discounts. It can be particularly effective when it is done at the end of a financial year when home builders are often working to meet sales quotas and other targets.

Fall

The key to making a profit in real estate is getting into the game at the right time. Many investors wait until the spring and summer, when prices are high, to invest in properties they hope will appreciate. But the Fall is a great time to invest in home development projects because fees are lower and there is less competition from other buyers.

The first thing developers need to do when they release a new development is generate interest. This is why they will often hold “pre-sale” and invite-only events as soon as the model is ready. Builders are incentivized to sell homes quickly because they use borrowed money and every day that a property is unsold costs their interest on the loan.

After the summer holidays, buying activity is usually increased in September. People renting may buy a home to stop paying rent and get their mortgage.

Then there is a slowdown in buying activity until December, when people are focused on Christmas preparations and properties need to show better in the dark winter light. But by January, people are usually re-energized and keen to find the perfect home to spend their lives.

Winter

New homes have newer amenities and features for which homebuyers are willing to pay more. It makes them a good real estate investment option. Additionally, they require less maintenance and have warranties, which can help increase their resale value. The best time to invest in these properties is spring and summer when the market is more active. However, investing in a new construction development can still make sense even in winter.

National housing data supports that property prices and sales trends tend to follow a seasonal pattern. This trend can be observed in many housing markets across the US, especially during autumn and winter. Hence, buying properties in these seasons can benefit you in terms of price and financing.

With fewer property buyers, you can enjoy price cuts on real estate investments in the winter. For example, a study found that single-family homes cost, on average, 8.45% less in January and February than in June and July.

Lower inventory also means a lesser chance of competing with other property buyers for the home you want to buy. You can negotiate with sellers and get a better deal. Nonetheless, it would help if you remembered to do due diligence on the property you’re interested in. It may include hiring an inspector who can conduct inspections under winter weather conditions and requesting documents supporting what you cannot see, such as building permits and receipts.

Jeffrey Bowman

Jeffrey Bowman