Top 3 Reasons Why Now Is a Great Time to Buy a Beachfront Property
Are you looking to buy your own home? Would you like to buy a beachfront property, but are wondering if you can afford it? Well, it’s your lucky real estate sales season. According to industry experts, with highly-affordable market prices and historically-low mortgage rates, now is actually one of the best times to buy a house! And while there are conflicting views about the future of the housing industry—some say it’s bouncing back, others believe that it’s still going to fall further—one thing is clear: 2011 is a buyer’s market, even in the most sought after beach communities. Here’s why:
Properties are “On Sale”
Nationwide, housing prices are down 30 percent on average—even down 55 percent in some locales. With the number of foreclosed homes on the market, it’s no longer impossible to find well-priced properties by the beach. Miami—a city known for its great beaches and lively nightlife—has been included in CNN’s top ten cities for home buyers, and it’s no wonder: owning a quaint stucco cottage in this dynamic city now costs less than renting!
Other beach- and bayfront properties are available at very low prices in other beach communities, where they are targeted for “second-homers” and snowbirds who find fine white sand and great beaches irresistible. With a seaside atmosphere as the lure, and great prices as the hook, buyers are falling for beach living, and getting great deals in the process.
Mortgage Rates Are at a Record Low
Aside from low prices, there is another factor which encourages home buying now: interest rates are at a 40-year low. Averaging just shy of 4.3 percent for a 30-year fixed-rate mortgage (as of this writing), the cost of financing a home purchase is much lower now than it was just a few years ago. This means a great deal for middle-income families, who are finding that with low interest rates, the beach home of their dreams is becoming more financially feasible. Rates can’t stay this low forever, so buyers need to hurry to take advantage of this once-in-a-lifetime affordability.
Large Inventory
Would you like a beachfront property in Fort Lauderdale, imagining a leisurely life parasailing or snorkeling right in front of your home? Or perhaps you’d prefer a condo on the coast of California? Prices for condominiums in both of these locations have gone down drastically, and if you pay with cash, you can even get a better deal.
However, once the market goes back up (and some analysts are seeing rising trends), sales volume increases, and at that point inventory levels will come down dramatically. The longer you postpone buying a home, the smaller your choices will become, and your chances of finding an affordable dream home may vanish.
Properties located in cities with warm weather and beaches, like sunny Florida, are bound to appreciate in value in the future, given all the perks that come with them: white sand beaches, temperate climate, and a variety of water sports and other entertainment opportunities. And what sustains the value of these properties also drives their demand, meaning when the market picks up, it will pick up fast. Buyers are sure to swamp these locations when confidence in the marketplace returns, so why not buy low and make the best financial move?
Forces are conspiring to make it easier to own that dream home than its ever been. So take the hint, and check out the prices in your dream beachfront community. You may be pleasantly surprised.
