Posted 9 days ago

Holiday Season Real Estate Trends Investors Need to Know

a row of small wooden models of houses in front of twinkling lights

With fewer potential buyers in the market, lots of motivated sellers looking to close deals quickly, and the potential for tax advantages before year-end, the holiday season offers plenty of unique opportunities for real estate investors.

We’re going to guide you through the most important trends to watch during the holiday season. Whether you’re eyeing discounted properties, planning to capitalize on increased rental demand, or seeking ways to position yourself for the new year, understanding these trends can give you a competitive edge.

Trend 1: Impact of the ‘Holiday Slowdown’ myth

The holiday slowdown may be a myth, but the opportunities it brings are very real.

Many believe that the real estate market grinds to a halt during the holiday season. It’s a big assumption that prospective buyers and sellers are too busy getting ready for the holidays to focus on transactions, leading to fewer opportunities for investors.

In reality, the holiday season can be an ideal time for investors to make strategic moves: precisely because the competition often thins out.

While the volume of listings may decrease, the sellers who remain on the market are often more motivated to close deals quickly. Fewer active buyers means less bidding pressure, creating room for negotiation – and potentially better pricing.

Trend 2: Motivated sellers (the holiday advantage)

Compared to other times of the year, sellers who keep their properties on the market during the holidays tend to be super serious about selling.

The holiday season brings unique pressures that can make sellers highly motivated to close deals quickly. They may be facing year-end financial deadlines, preparing for a job relocation in January, or just want to avoid carrying the property into the new year.

Many sellers prioritize speed over price during the hectic holiday season, creating opportunities for cash buyers or investors with pre-approved financing to close deals faster.

For quick-moving deals like these, it’s important to avoid the most common financing mistakes to ensure you’re ready to strike.

Trend 3: Seasonal demand for rentals

The winter months are when short-term rentals see a holiday rush, especially in certain markets. From families traveling to visit loved ones to tourists seeking festive destinations, the holidays drive a spike in short-term and vacation rental bookings.

In tourist-heavy areas (such as ski towns, beach destinations, and cultural hubs with popular festive events), the demand for short-term rentals can skyrocket. Investors who own or plan to purchase properties in these areas should prepare to capitalize on the seasonal surge.

Families, groups, and solo travelers often prefer short-term rentals over hotels for the added space, comfort, and home-like feel.

For real estate investors, this increased demand can translate into higher rental income and make certain properties more attractive investments.

It’s one of the benefits of using an Airbnb rental as a real estate investment asset.

Trend 4: End-of-Year Tax Benefits

As the year comes to a close, savvy real estate investors know that the holiday season isn’t just about gifts and gatherings. It’s also a golden opportunity to reap significant tax advantages.

Closing on deals before December 31st can help you maximize deductions, defer tax liabilities, and position yourself for a stronger financial start to the new year.

To maximize tax benefits, it’s important to:

Consult a tax professional: Work with a CPA who specializes in real estate to ensure you’re taking full advantage of applicable deductions and credits
Organize your records: Keep detailed records of all transactions, expenses, and improvements to streamline the tax filing process
Plan for next year: Consider how your year-end deals align with your long-term financial and investment goals to set yourself up for continued success.

Trend 5: Shifting housing market dynamics in a post-pandemic era

Although it was four years ago now, the pandemic continues to redefine how and when real estate transactions happen. It means the holiday season is no longer a time to sit on the sidelines.

Changes in work habits, adoption of digital technologies, and buyer preferences are shaping the way investors approach the market during the holidays.

Understanding these trends can help you identify emerging opportunities and adapt your strategy to current conditions:

Remote work and relocation. The rise of remote work has decoupled job locations from living choices. Many buyers and renters are moving to areas with a lower cost of living, better quality of life, or nicer weather. Holiday seasons, especially year-end, are now a popular time for people to make these moves, as families prepare for a fresh start in January.

Increased demand for suburban and rural areas. The pandemic spurred interest in properties outside urban centers, and this trend continues to influence holiday-season activity. Buyers are drawn to homes with more space, outdoor areas, and proximity to nature. During the slower holiday period, competition eases: making this a great time to target these desirable areas.

Digital-first real estate. The pandemic accelerated the adoption of virtual tours, online closings, and digital tools for buyers and sellers. These platforms make it easier to scout properties in different locations, without having to brave the roads during bad weather.

Trend 6: Best properties to target

By targeting the right property types, you can capitalize on motivated sellers, seasonal demand, and market trends. Certain types of real estate perform really well during this period, giving investors unique advantages in both the short and long term.

We’ve outlined below the best types of property to invest in at this time of year, and the reasons why.

Single-family homes

Motivated sellers: Homeowners often list properties during the holidays due to job relocations, financial reasons, or personal timelines, making them more open to negotiation.
First-time buyer market: Many families use year-end bonuses or tax planning strategies to buy homes, ensuring steady demand.
Rental potential: Single-family homes are highly desirable for long-term renters, especially in suburbs with good schools.

Multi-family properties

Attractive year-end deals: Multi-family properties that didn’t sell earlier in the year may be discounted, as real estate agents aim to close before December 31st.
Immediate cash flow: With multiple units generating income, these properties can provide a steady revenue stream right after acquisition.
Value-add potential: Many multi-family properties sold during the holidays need minor renovations, presenting opportunities to increase ROI.

If you’re new to this route, be careful to avoid the top 5 mistakes investors make when entering the multi-family lending space.

Distressed or foreclosed properties

The holidays are a great time to acquire distressed or foreclosed properties at below-market prices. It also may be a good time if you’re considering investing in tax liens.

Motivated lenders and sellers: Banks and other financial institutions often want to clear distressed properties from their books before year-end.
Potential for equity growth: With renovations, these properties can offer significant appreciation or rental income potential.
Less competition: Many investors overlook foreclosures during the holidays, increasing your chances of finding a deal.

Trend 7: Networking opportunities

The holiday season is one of the best times of the year to expand your network and indulge in professional growth. Whether it’s at festive gatherings, year-end business events, or virtual meetups, the holiday season offers plenty of opportunities to connect with other investors, agents, lenders, and other industry professionals who can help you achieve your goals.

Holiday parties provide informal networking opportunities that are just as valuable as formal events, such as agent and brokerage parties or local charity fundraisers. There are lots of digital opportunities, too, with webinars and online panels or simply interacting on social media with other industry professionals who are reflecting on the year.

Top tips for effective real estate investing during the holiday season

With lots of motivated sellers and fewer active buyers, there are opportunities to uncover valuable deals – but only if you’re prepared to navigate the quirks of the housing market during the holiday season. Here are actionable tips to help you make the most of your holiday-season investments.

Stay active while others pause. Keep monitoring listings, networking, and attending property showings. Sellers motivated by year-end deadlines are more likely to engage with serious buyers during this quieter period.

Use digital tools for speed and convenience. Holiday schedules are often packed, but digital tools can save time and keep you ahead of the curve. Use property alert systems to stay updated on new listings, conduct virtual tours to evaluate properties without traveling, and use e-signature platforms to quickly close deals.

Focus on motivated sellers. Look for properties with multiple price reductions, those that have been on the market for a while, or listings with language that suggests urgency (e.g., “must sell”).

Don’t get distracted from long-term goals. Resist temptation and evaluate how each property you view fits your goals for cash flow, appreciation, or portfolio diversification. You can learn more about defining strategies in our top tips for growing your rental property portfolio.

Be flexible with offers and terms. Offer quick closings, negotiate repairs after purchase, or explore creative financing options like seller financing or lease-back agreements.

Prepare for seasonal challenges. Lots of people slow down around the holidays, so get around logistical challenges by starting paperwork early, getting pre-approvals in place, and working with professionals who can accommodate your timeline.

Plan for seasonal rental demand. Market your short-term rental properties as holiday-friendly with amenities like fireplaces, festive décor, or proximity to seasonal attractions.

Budget for extra winter costs. Heating repairs, snow removal, and delayed inspections due to poor weather can eat into your budget. Build a contingency fund to cover these expenses without impacting your bottom line: and follow our 10 tips to prepare your property for winter.

Use the holiday season to strengthen connections. Send holiday cards, attend real estate events, or simply reach out to express gratitude to those who’ve contributed to your success throughout the year.

Get financing in place before the new year

By understanding key trends – such as what motivates sellers, seasonal rental demand, and year-end tax advantages – you can position yourself to make smart, strategic investments that others might overlook.

A proactive strategy during the holidays may bring significant rewards, but it means nothing if you don’t have financing in place. That’s where Express Capital Financing comes in. With tailored loan solutions, competitive rates, and a commitment to helping investors achieve their goals, we’re your partner in turning holiday-season plans into successful property acquisitions.

Take the first step and apply now to secure the funding you need to make this holiday season your most profitable yet.