Why August and September Are Smart Months to Buy Real Estate – Despite Market Uncertainty

When is the best month to buy real estate? August and September are smart choices offering less competition, better deals, and ideal timing for families to settle in before the school year starts.  

While May through July tends to attract the most buyer activity, many overlook the unique advantages that August and September offer, especially in light of the more homes on the market act 2025, which could influence inventory trends and buyer leverage.

At INVESTOR FRIENDLY CPA®, we help real estate investors, business owners, and high-income earners build long-term wealth and reduce taxes through smart, strategic decisions. And when it comes to buying property, timing not only affects pricing and competition but can also significantly improve your year-end tax outcomes.

What’s Happening in the Real Estate Market This August?

The Federal Reserve is scheduled to meet next month, and while there’s speculation about a potential rate cut, it’s important to understand this:

The Fed does not directly set mortgage rates.

Even if the Fed lowers the federal funds rate, mortgage rates, especially for investment properties may not fall in response. Broader economic trends, inflation expectations, bond markets, and lender-specific risk models influence them.

And when it comes to investment property loans, rates are almost always higher than those for primary residences. They're based on:

• ‍Loan type and terms

• Investor experience

• Creditworthiness

• Property income and DSCR ratios

As a result, many real estate investors are still sitting on the sidelines — unsure how to make a move with high interest rates and without large amounts of upfront cash.

But waiting for perfect conditions often means missing out on deals that could still build equity, cash flow, and tax advantages today.

This year, we’ve already seen more homes on the market in several regions compared to the same time last year, giving buyers and investors an edge in negotiations.

Why Investors Are Struggling to Move Forward

Despite a slight decline from peak interest rates in 2023, real estate financing in 2025 still poses challenges, especially for:

• New investors unsure how to get started

• Experienced investors trying to scale with limited cash

• Buyers waiting for a drop in rates that may not come anytime soon

This uncertainty has led many to ask: “How do I invest in real estate when interest rates are high?”

The Answer: Creative Financing

The most successful investors in today’s market aren’t waiting, they’re adapting.

Creative financing strategies help investors close deals and build wealth even when rates are high. Some of the most effective options include:

• DSCR loans (based on property income, not personal income)

• Bank statement loans for self-employed borrowers

• Interest-only loans to improve cash flow

• Seller financing or “subject-to” deals

• HELOCs and business lines of credit

• Partnership or syndication models

Why Late Summer Benefits Real Estate Investors 

The advantages of late summer extend beyond traditional homebuyers. Real estate investors can benefit from this quieter market as well. Sellers of multifamily or investment properties who listed earlier in the year may be more motivated to negotiate after several months without closing a deal. 

Additionally, August and September follow the peak travel season, making this a strategic window to acquire short-term rental properties and prepare them for next year’s travel cycle. Investors interested in house hacking strategy, purchasing a multi-unit property, living in one unit, and renting out the others, may also find more options and less buyer competition during this time.

Is 2025 a Good Time to Buy a Home? 

The best time to buy a home is not determined by market trends, mortgage rates, or housing inventory alone. The real factor that matters is your financial readiness. 

You may be ready to buy if you have eliminated high-interest debt and have an emergency fund covering three to six months of expenses. Your total mortgage payment, including principal, interest, taxes, insurance, and other fees should not exceed 25% of your take-home pay. 

For first-time homebuyers, a down payment of 5-10% is a solid goal. For repeat buyers, 20% is ideal to avoid private mortgage insurance (PMI) and reduce your loan balance. You should also have enough saved to cover closing costs without tapping into your down payment funds. 

Beyond the purchase, homeownership comes with ongoing costs such as maintenance, repairs, and utilities. Make sure your budget can comfortably absorb these expenses. Lastly, plan to stay at home for at least three years; otherwise, the upfront costs may outweigh the benefits. 

Year-End Tax Advantages of Buying Before December 31 

Buying real estate before the end of the year can unlock valuable tax benefits. For investment properties, depreciation begins in the same calendar year the property is placed in service. The sooner you close, the sooner you can begin leveraging this annual deduction. 

Additional deductible expenses for the current tax year may include mortgage interest, property taxes, discount points, and certain closing costs. Real estate investors can also explore cost segregation strategies, which allow you to accelerate depreciation by breaking the property into components that depreciate faster than the building itself. 

For business owners and high-income earners, buying before year-end also aligns with advanced tax planning strategies for high income earners, helping to reduce 2025 tax liability while building long-term wealth.

Understanding How Real Estate Is Classified When Purchased by a Family 

Real estate is classified based on how it is used, not by who owns it. If a family buys a home to live in, it is considered residential real estate, including single-family homes, condos, townhouses, and 2–4-unit properties like duplexes or triplexes. Even if one unit is rented out, it is still residential if there are four or fewer units. 

If the property is mainly used for rental income or business such as a strip mall, office building, or apartment complex with 5+ units it is classified as commercial real estate. Mixed-use properties 

How INVESTOR FRIENDLY CPA® Can Help 

At INVESTOR FRIENDLY CPA®, we work closely with real estate investors, entrepreneurs, and high- income professionals to make tax-smart decisions that drive long-term financial success. Whether you are buying your first investment property, planning a house hack, or expanding a growing portfolio, our customized strategies are designed to help you reduce taxes, build wealth, and stay compliant. We offer expert guidance in entity structuring your legal and tax strategies, depreciation and cost segregation to accelerate savings, and tax compliance to make sure your investments remain protected under current IRS rules. 

While many buyers focus on timing the market, we believe the smartest time to buy is when you're financially ready, meaning you have eliminated high-interest debt, built a solid emergency fund, and can comfortably afford your projected mortgage. When those boxes are checked, purchasing in August or September offers strategic advantages like reduced buyer competition, better pricing, and key year-end tax benefits. If you are considering moving before the school year begins or want to close before December 31 to maximize 2025 tax opportunities, we are here to help. 

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Let INVESTOR FRIENDLY CPA® build a personalized plan tailored to your goals and turn your next property purchase into a powerful, tax-optimized investment. 

Read this article on our official blog: Why Late Summer Is a Smart Time to Buy Real Estate for insights on market trends, mortgage rates, and how to maximize tax savings when buying before year-end. 

For additional guidance on evaluating real estate deals and understanding current market trends, check out this helpful guide from the National Association of Realtors® on housing market research and data.

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