When is the best month to buy a house? 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 benefits for primary homeowners and real estate investors.
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.
Market Conditions in Late Summer
As the spring and early summer frenzy dies down, August and September tend to bring lower prices and more choices for buyers. With less competition from other buyers, sellers become more flexible and often lower prices or offer incentives to close before the year-end.
For families, August is an ideal month to finalize a move before school begins. September offers a calm, mid-fall transition without the complications that come with winter weather.
Why Late Summer Also 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 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 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.
Mortgage Rate Update: What It Means for Your Next Move?
Wondering if now is the right time to buy despite interest rates? Many buyers are holding off in hopes of lower rates, but that strategy may not always pay off. Let’s take a closer look at what happened with mortgage rates 2025, and what it means for your buying decision.
In 2025, rates dropped but not by much. After peaking at 7.79% in October 2023, 30-year fixed mortgage rates dropped to approximately 6.89% by February 2025, according to Forbes. While many hoped for a more dramatic drop, the decline has been gradual. Rates are expected to hover around 6.5% for the remainder of the year, including August and September.
The Federal Reserve reduced rates three times in late 2024 and kept them steady in 2025, between 4.25% and 4.5%. Although additional rate cuts are possible, they are not expected to significantly impact mortgage rates. If you are financially ready to buy, waiting for lower rates may not be worth delaying your purchase, especially when late summer presents other strategic advantages.

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, purchasing real estate through the appropriate legal entity can offer even greater tax planning opportunities. A well-structured acquisition can align with your business strategy and support long-term financial growth.
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 combine both residential and commercial uses, like a building with retail on the first floor and apartments above.
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.
Let INVESTOR FRIENDLY CPA® build a personalized tax plan tailored to your goals and turn your next property purchase into a powerful, tax-optimized investment.
Do not let tax complexities hold you back from your investment goals. Reach out to our team by completing the new client form on our website with no obligation.
Website: www.investorfriendlycpa.com
Toll free in the US at 1-800-522-6091
Email: info@investorfriendlycpa.com to get started.
- August and September are smart months to buy real estate due to lower competition, better prices, and ideal timing before the school year starts.
- Real estate investors benefit from motivated sellers, house hacking opportunities, and preparing short-term rentals for the next travel season.
- Mortgage rates in 2025 have slightly declined and are expected to remain steady around 6.5%, making now a practical time to buy.
- Buying before December 31 allows investors to start depreciation and claim tax deductions for the current year.
- INVESTOR FRIENDLY CPA® helps buyers make tax-smart decisions through strategic planning, entity structuring, and IRS-compliant guidance.