It's a Good Time To Buy on LBI
It’s now a level playing field between buyers and sellers on LBI. True, it has been long in coming. Not long ago listings went under contract just days after they were listed (sometimes in less) and multiple offers and bidding wars among buyers competing for the same house were the norm.
Times have changed and we have returned to what most regard as a “normal market”. It is definitely more “normal” than it has been in the past 4 or 5 years. Prices have flattened and we have seen more of the “soft landing” than the crash that has been talked about so often. But many buyers are concerned about prices dropping further.
Buyers – listen, now is a great time to buy. Interest rates are still relatively low. And while 30 year fixed rates are expected to rise to 6.7% in the fourth quarter of 2007, according to NAR (National Association of Realtors) forecasts, rates are still not bad if you remember when rates were up around 9%. Speculators have essentially dropped out of the market and inventory of homes on the sale market is up. For now, the pressure is off buyers to make quick decisions and on sellers to negotiate.
The second home market is expected to double in 2009 which will put pressure on the most desirable locations. According to the 2006 Second Homes and Investment Property NAR survey the most popular second home locations are near bodies of water or mountains and locations that are less than a day’s drive from buyer’s primary residence. LBI, with its close proximity to densely populated areas like New York, Northern New Jersey and Philadelphia and with the finest beaches on the east coast continues to be a very desirable location to own a second home.
While one half of the second home buyers surveyed by NAR use their homes for recreational use, nearly all of the remaining second home buyers purchased their home as investment property to generate rental income. For all buyers considering purchasing rental property, the vacation market on LBI is still strong.
So, LBI buyers, what are you waiting for? Take advantage of this window of opportunity. Summertime is just around the corner and renters are down looking for their summer vacation rentals now. Visit me at http://www.YourLBIRealEstateSource.com to see my featured listings.