When you think about Black Friday, you likely envision the day after Thanksgiving. Tons of consumers head out to online and physical retailers to get a fantastic deal on their favorite products. If you are looking into the possibility of purchasing property to use as corporate housing, you might wonder if Black Friday exists for real estate. Unfortunately, that isn’t the case. The closest thing to Black Friday for real estate happens at the end of the summer when sellers are looking to get their home sold before autumn starts.
Black Friday for Real Estate
In most places, the best time to get a great deal on real estate for corporate apartment leasing is in August. Research has been done that shows nearly 14% of house listings had a price cut during this specific month. When you shoot forward a few months to December, you’ll see that only a little over 8% of listings experienced a price drop. This is often related to agents and sellers who are happy to wait until spring to turn a profit.
Exceptions to the Rule
While this relates in many areas, it isn’t always the case in areas where the weather is warm from January to December. These areas include Nevada, Florida, and California. As an example, in the large Florida markets, such as Tampa, Fort Lauderdale, West Palm Beach, and Daytona, the month that has the highest amount of rate cuts is only 1.6 times greater than the month with the lowest rate of price cuts.
However, cities with harsher winter weather, like New York, Madison, and Fairfield County, have huge price cuts in August through September when compared to the price cuts in December.
Where to Find High Price Cuts
The number of homes that have at least one price cut while listed is growing month over month. In seven of the last 12 months of listing, there was an increase in terms of how many listings experienced a cut. The areas that experienced the most rate cuts include Phoenix, Chicago, and Lake County, Illinois. However, places like Oakland, San Francisco, and San Jose are the areas that saw the fewest price cuts.
However, what you need to keep in mind when buying corporate housing is that just seeing a higher level of price cuts doesn’t mean that the market is slowing down in any serious way. As an example, from 2013 to 2015, the number of listings that experienced a price cut was fairly consistent. This also coincided with the period offering the quickest level of price appreciation since the 2007 recession. This goes to show that sellers are pushing for an asking price above where it should have been.
An Alternative to Black Friday for Real Estate
There’s nothing saying you shouldn’t scope out the deal on housing on Black Friday, just as you would for any other products or services you use. You just need to be aware that the deals you find will be less common than you might think. Instead of focusing on this date, consider your location and the August date mentioned above might be the best time to shop. Even if you don’t find a miraculous deal on either of these dates, it’s possible a buyer will have a discount or add-on to offer you in order to get you into a property.
Purchasing property for corporate apartment leasing is a great idea that can bring in a fairly decent income, so watch the market and be aware of changes. That is the best way to get the price you want, not relying on a specific date on the calendar.
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