Is now the right time? T
June 2014
Financial stars align to make buying more affordable he most common question asked by many people thinking of buying real estate, especially when it’s a vacation home, is “When is a good time to buy?” Despite all the calculators, indexes, studies and advisories, the simplest answer is the best: you buy when you can afford it. That sounds almost naïve, but a great deal on a vacation home is only great when you get the property you want.
There’s a huge difference between buying for price and getting something and buying what you truly want at a price you can afford. More importantly, the same can be said for worrying about what your neighbors paid, assuming that your aim is to have a place at the beach for you to enjoy. What he or she paid makes no difference. After all, buying a vacation home is not a com-
petition, but a lifestyle choice. However, there are times when the financial stars align and good deals are available. According to the sales statistics for the coastal area, as well as financial data supplied by Freddie Mac, this is one of those times. The average sale price of a residential property in this area in April 2010 was $295,344, according to the Maryland Association of Realtors. This past
April, the average sales price had dropped to $258,135. In addition, the average rate on a 30-year mortgage this past April was 4.34 percent as compared to 5.1 in the same month five years ago. Factoring in the better interest rates and the lower average prices, anyone who’s thinking about getting that second home at the beach will have to agree, the best time to buy could be now.