At one point or another, you've probably heard someone say, “Yesterday was the best time to buy a home, but the next best time is today.” In the current real estate market, this saying rings especially true. While you may have been holding out for prices to drop or mortgage rates to fall further, the reality is that waiting could cost you in the long run.
If you're considering purchasing a luxury shore home in areas like Point Pleasant Beach, Brielle, Bay Head, or Mantoloking, the time to act is now. Here’s why.
Home Prices Are Still Rising — But at a More Sustainable Pace
Nationally, home values are still on the rise, and the trend is expected to continue for years to come. According to the Home Price Expectations Survey from Fannie Mae, home prices are projected to rise at a steady pace of 3-4% annually, likely through 2029. While we’re no longer seeing the steep increases that characterized previous years, the trend is still upward.
This means that waiting for prices to drop significantly is unrealistic. In Point Pleasant Beach, and Mantoloking, areas known for their luxury shore homes, this upward trend is even more pronounced due to the ongoing demand for prime waterfront properties.
The Impact of Waiting
If you’re on the fence about purchasing a home in these sought-after towns, here’s a critical point to consider: waiting could end up costing you more.
For instance, if you buy a $1,000,000 home today, experts project that its value could rise by over 20% in the next five years.
So, if you wait five years, you could potentially see an increase in home value by about $200,000 in that timeframe. The longer you wait, the more equity you might miss out on if home prices keep rising.
Furthermore, while mortgage rates might dip slightly, rising home prices could still make waiting more expensive overall. So, even if you’re holding out for a better rate, the reality is that tomorrow’s home prices will likely be higher than today’s.
Why Aren’t Prices Dropping? It’s All About Supply and Demand
The simple truth is that there aren’t enough homes on the market to meet the demand from eager buyers, especially in high-demand areas like Bay Head and Mantoloking. Even with more homes available than last year, the number of buyers remains high, and this continued demand will keep prices rising.
Real estate experts predict that while the market may experience some leveling off, a significant national price drop is unlikely in the near future. As demand remains high for luxury shore properties, such as oceanfront homes in Bay Head and Mantoloking will continue to appreciate, making it harder to find a deal in the future.
Mortgage Rates Are Trending Down – A Window of Opportunity
Good news for buyers: mortgage rates have been trending downward for several weeks. While mortgage rates are still higher than what we saw during the pandemic’s market highs, they’ve recently dipped, providing some relief for homebuyers.
Mortgage rates have been declining steadily, and the current low point provides an excellent opportunity to lock in a more favorable rate on a home in Point Pleasant. This recent drop could save you hundreds of dollars per month on your mortgage payment, making now the time to act if you've been waiting for better rates.
What Lower Rates Mean for Your Buying Power
Even a small change in mortgage rates can significantly impact your monthly payment. For example, on a $400,000 home loan, the drop in rates could reduce your monthly payment by over $100 — a meaningful savings for homebuyers.
If you've been waiting for rates to fall further, it’s important to act now. While the window of lower rates may be temporary, the higher home prices in Mantoloking and surrounding areas will continue to climb, potentially costing you more in the long run.
Why Now Is the Time to Buy in Point Pleasant Beach, Brielle, Bay Head, and Mantoloking
Now is the time to buy in your dream shore town. Whether you're drawn to the beautiful beaches of Point Pleasant Beach, the upscale charm of Brielle, or the peaceful luxury of Mantoloking, the opportunity to secure a waterfront property at a great price is now. With home prices continuing to rise and mortgage rates showing signs of stabilizing, there’s no better time than today to make a move.
If you’ve been holding off on buying due to high mortgage rates or the hope of lower prices, it's time to reassess. We are here to help you find the perfect luxury shore home — and we can guide you through the process, making sure you’re ready to seize the opportunity before it passes.
Ready to Make Your Move?
Whether you’re ready to buy now or just exploring your options in these luxury shore communities, now is the perfect time to act. Contact us today to learn more about available listings, get insights into the local market, and make a plan to find your dream home in Monmouth or Ocean County.
Posted by Madison Clayton on
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