There are several forces at play right now that have created red hot real estate market here at the beach. The really cool thing is … right now … our market is set up perfectly for both buyers and sellers. Here’s why:
Prices are high – this is great for sellers.
Interest rates are very low – this is great for buyers because it gives them a lot more purchasing power, especially on 30-year mortgages.
Rental demand is very high – Three big reasons for the high demand here at the beach: the cruise industry is shut down for the foreseeable future, folks are not vacationing abroad (again, for the foreseeable future), and flights are questionable at best. For these reasons, I think demand for vacation rental properties that are driving distance is and will remain very high for the next year or even longer. This is great news for both sellers and buyers because the high rental income supports higher sales prices and allows buyers to walk into more and higher dollar booked post-closing rentals.
Geographic relocation - There are a lot of people who are moving out of large urban areas (especially in the northeast) and relocating to our area. Again, this is good news for both buyers and sellers because it should lead to continued high demand for properties here at the beach resulting in right now high prices for the current sellers as well as strong price appreciation for those folks buying right now.
Other Considerations: - Of course, all this could change quickly. There is a ton of risk sitting right there at the door as we well. Covid-19, questionable economy, presidential election, unemployment…
What to do?
Our role is to help you maximize your position as a seller or a buyer based on the current market conditions and your goals for owning real estate at the beach. With this in mind, we recommend the following:
Short Time: if you are planning on owning only for a short time – perhaps selling this year or in the next couple of years – you should strongly consider protecting the equity you have built up and sell now while we know the market is hot.
Long Haul: If you are in it for the long haul – markets come and go so we recommend that you stay the course. Perhaps look at maximizing your rental income by updating or upgrading your property. Otherwise, settle in and enjoy your investment.
Buying: If you are considering buying a place – go for it. Interest rates are low, and it looks like demand is likely to stay high for a while so prices will likely continue to go up. Again, if you are planning on owning for longer than 5 -7 years you are sitting good and will likely be able to capture a very, good sales price in the future.
Words from a recent seller - “The whole selling process was flawless from listing to closing. There were no surprises, timing was excellent and all the documents were complete and accurate. Excellent Job! Thank You” G Hoffman
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I hope this information is helpful and please let me know if you have specific questions regarding the market or your property. If you know anyone else that could benefit from this information please pass it on to them.