Should You Wait For A Lower Interest Rate to Buy in the LBI Real Estate Market?

Should You Wait For A Lower Interest Rate to Buy in the LBI Real Estate Market?

Low Mortgage Interest Rates and Buying a Home in the Long Beach Island Real Estate

Click here to search all homes for sale in the Long Beach Island NJ real estate market

Long Beach Island Real Estate

The Long Beach Island NJ real estate market has seen some unprecedented activity in 2020. The combination of COVID-19, a strong real estate market, high demand, low inventory, and historically low interest rates have created both challenges and opportunities for buyers and sellers alike. The interest rate environment has lead to the question of, “Should You Wait For A Lower Interest Rate to Buy in the LBI Real Estate Market?”. There is no clear-cut answer to this question, but there are some historical precedents that can help offer guidance. For example:

  • The LBI real estate market usually is not heavily impacted by small moves in interest rates
  • There is a very good chance that interest rates will increase in 2021
  • The spring and summer market on Long Beach Island may see an increase in buyer demand which will create more competition in an already low inventory environment.

By : Nathan Colmer | The Van Dyk Group

Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com

www.BuyLBI.com

Click here to search all homes for sale in the Long Beach Island NJ real estate market

Should You Wait For A Lower Interest Rate to Buy in the LBI Real Estate Market?

The overall “picture” of America has improved in the past few weeks. The economy is doing pretty well, we are passed a tumultuous election, and the nation and the world seem to be winning the fight against coronavirus. These positive factors will likely prompt an increase in interest rates. While all buyers in the LBI real estate market will pay attention to interest rates, a small change in rates is unlikely to impact the behavior and buying patterns of buyers. In otherwords, if rates move up a quarter or even half a point, it is unlikely that prices will see any significant impact. Demand is still very high and most buyers can afford this increase. Therefore, a delay in purchasing a home could result in a much higher cost of ownership. Right now at least, there seems to be more of a reason that rates will rise rather than fall more. The challenge for most buyers right now in the LBI real estate market is the inventory-or lack thereof. As we come into the spring market, this is likely to worsen. There is a good chance this will lead to higher prices in the next few months which, coupled with a potential rise in rates, could lead to a much higher cost of ownership.

Low Mortgage Interest Rates and Buying a Home in the Long Beach Island Real Estate

The intent of this article is not to cause anyone to rush into a purchase. It is impossible to time any market and while the prospect of rates going up is strong, there is also a chance they will fall further. It was not that long ago that buyers and lenders alike thought that a 4% interest rate was “rock bottom”. Now, we are well below that. Rather, if you are considering the purchase of a home in the Long Beach Island real estate market and you find a home you like, it is most likely advisable to jump on it and take advantage of the current situation. if not, then there is no harm in waiting for the right home and, hopefully, the same or lower interest rate! If you have any questions about buyingselling or investing in the LBI real estate market, please do not hesitate to contact me.

By : Nathan Colmer |LBI Real Estate Agent | The Van Dyk Group

Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com

www.BuyLBI.com

Click here to search all homes for sale in the Long Beach Island NJ real estate market

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