It seems that a lot of folks are asking: “Is this the right time to buy a home in the Coastal Carolinas?” Maybe we can help answer that. While we don’t know for certain where interest rates will go in the next few months, here’s what we do know: The Telegraph predicts that interest rates will rise in early 2016. On Friday, July 17th, Zillow Mortgages listed rates at 3.95 percent for a 30 year fixed rate mortgage up 7 points from this time last week. 15 year rates are currently 3.04 percent and a 5-1 adjustable rate was listed at 2.91 percent. A few lenders have entered in the 4.0 30 year zone which means we are headed into higher territory.
It would seem pretty obvious that now IS the time to buy and the public seems to agree with us. To date there have been 400 properties sold (homes, condos and lots) reported on the Brunswick County MLS and there are another 147 under contract. Note that this does not include commercial properties. It would appear that buyers are jumping in and ASAP’s sales certainly reflect that trend as we are extremely busy and have been since the beginning of 2015. Since winter is typically a slow time for us, the mindset among Realtors seems to be that the snow, ice and extreme cold weather have precipitated contracts on resales and new construction in our selling area.
So who are our typical buyers at this time? At ASAP we’ve found that many of our clients are contacting us through third party websites such as Trulia, Zillow and Realtor.com. These inquiries come from all over the country, for example, we closed a deal on a condo in April for a buyer from Broomfield Colorado who was just “done” with snow and freezing temperatures. Other buyers came from Maryland, New York, New Jersey, Georgia. Western North Carolina, Virginia and even Florida! We are currently working with new clients who hail from Connecticut, Minnesota and Canada just to name a few.
If you think all of these buyers are retirees you are absolutely incorrect! Many of our clients are still a few years away from retirement but have chosen to seek and purchase now while prices remain level and interest rates are still very attractive. Some will use them for the time being as vacation homes and others plan to rent for a few years and let tenants pay their mortgages until taking the plunge into retirement. For many people, it’s a great investment or a place to park some investment money. Here’s a typical scenario to consider: Buying a condo for 150,000 in cash could net the owner somewhere in the neighborhood of 9000 per year after HOA fees and taxes and insurance. That’s a return of 6 percent on your money. In contrast, today’s interest rate according to Bankrate is just 1.25 percent for a one year certificate of deposit. Who would not welcome that kind of return on their money, and get a place to retire when ready?
Wow, such a long winded blog! If you made it this far then you must be serious about purchasing or at least considering a purchase here in paradise. It’s a GREAT time to contact ASAP and learn how you can ride this wave and get in on the good deals that remain. Go to our SEARCH page, check out the listings and then drop us a line on the contact page letting us know which properties strike your fancy. We’re happy to lead you on this journey. Remember, NEW BEGINNINGS START HERE!