With so much bad news about the economy, the debt ceiling and the housing market, we need some good news to hang our hat on. The Real Estate Market on LBI can provide a little glimmer of hope, and some positive news. The Rental Market has been strong so far this year! The number of leases we have written are consistent with last year, so people are still attracted to the lure of LBI. The housing market is just as strong, as there a lot of great deals out there! There are many affordable vacation and 2nd homes currently on the market, as well as many Luxury Homes, including Ocean and Bay front homes, many of which are priced about 15-20% below what they were a few years ago.
With mortgage rates for Comforming Loans (under $417,000) and Jumbo Loans ($417,000-$729,000) remaining under 5%, now is the time to consider purchasing a home on LBI. There is a perfect storm of low interest rates and low prices that may not be here by the end of the year. The rumors around the Real Estate Industry have been that interest rates will rise, and settle at around 5 1/2-6% by the end of the year. This may offset any decrease we have seen in prices over the last few year, pushing your LBI Dream Vacation home out of reach.
So if you are thinking of purchasing a home on LBI, the Mainland areas of Manahawkin and Barnegat
, or anywhere for that matter, don't wait too long. It may be the difference between purchasing a home now, or waiting for affordability to return to this historical level.