When interest rates climbed up and up in 2023, many buyers decided to wait for rates to come back down again. When they kissed the 8% mark, buyers really tightened their reins. However, was that really the best idea? Not necessarily. With the new year (and a recent announcement by the Fed of as many as six rate cuts in 2024), some people wondered if they should buy now or wait before taking the plunge into the Jersey Shore real estate market again.
Jersey Shore Real Estate: Buy Now or Wait?
In my most recent interaction on the Downbeach BUZZ podcast, we discussed this very topic. Paul Zgalich with Rate.com stated that current interest rates fall in the mid-6% range. But he would not be surprised to see them dip below 6% later this year. Even so, waiting for a lower rate does not necessarily mean you save on your mortgage payment. Why? Well, first of all, when the rates go down, the buyer pool increases. With that comes more competition for these homes. As I can attest, our inventory levels at the Jersey Shore, particularly in Margate and Ventnor, remain extremely low. Consequently, more competition increases your chances of coming up against multiple offers. That tends to drive up the price. Then, the sale price of a home goes up. As a result, you may pay a lower rate for your mortgage but you pay a higher price for the home. Thus, you don’t really save any money by waiting.
Bottom line: if you are ready to buy a house now, I highly suggest that you do so instead of waiting. It may actually cost you more money if you wait it out. Plus, as long as inventory levels remain low, prices will not be going down anytime soon.
Local Wildlife Update
Anybody who has followed by posts for a little while knows about my love for our turtles here at the Jersey Shore. Never fear. Nesting season remains a few months away. However, they are not the only wildlife we see on our beaches. Do not be surprised if you find a seal hanging out onshore. While you may admire them from a safe distance away, never ever approach these animals. If you see one in distress, contact the Marine Mammal Stranding Center (609-266-0538). Their trained staff know how to help these beautiful creatures.
Sherri Lilienfeld, Apex Prime Realty, Your Source for Jersey Shore Real Estate