New listing in Fairway Mews, Spring Lake Heights!

Aug
02

Now is the Time to Buy Property at the Jersey Shore!

Prices have fallen hard and are inching their way back up. Mortgage rates fell to an unbelievable low and are going back up at a faster rate than expected. If you are thinking about buying in the next year, sooner is definitely proving better than later! Waiting may mean that you will have to spend more to buy a lesser home than if you act faster.

Does it make sense for you to buy a house right now?

The first thing you have to do is to decide if buying a house right now works with your life. Buying a home has its benefits, but it is also a huge financial undertaking. It would be wise to make sure you feel comfortable that your job is steady, and you don’t have high amount of “other” debt. Otherwise, what should be an exciting venture could quickly turn into a stress you don’t need. Once you’ve decided that buying property now is right for you, the rest is a no brainer.

Mortgage rates are going up, not down.

mortgage rates on the rise

Mortgage rates are on the rise. While they are still very low, they are rising more quickly than anticipated. Why is that important? Well, because the mortgage that you can afford today may prove to be unaffordable as the rates go up. On a 30-year fixed mortgage, rates have jumped more than a full point – from 3.35% to 4.39% – in just the last 90 days. This happened much faster than the experts had predicted. Therefore, waiting to purchase a home may mean that the house you can afford today may be out of reach next year.

Home prices are rising.

As with mortgage interest rates, it appears that home prices have bottomed out and are now on a slow rise as well. With a reduction in inventory and more people looking to purchase, home sale prices have been inching up. If this trend should continue, the amount you will have to pay for the house of your dreams will most likely cost you more in 6 months then it will cost you to purchase now – that is, if it is even available 6 months from now. According to the S&P/Case-Shiller Home Price Index, “home prices showed increases of 2.5% and 2.4% for the 10- and 20-City Composites in May versus April.” Zillow cites home prices increased 2% in Monmouth County and 1.9% in Ocean County from May to June.

So, what are you waiting for? All indications are that now is the time to buy property at the Jersey Shore! Mortgage rates and home prices are still low- but they are rising. If you are planning on buying in the next year, waiting will most likely not only cost you money – but may limit your choices as well. Your perfect home at the Jersey Shore awaits you!