Higher interest rates have prompted some prospective homebuyers to reconsider their plans; the question of whether it's the opportune moment to make a purchase looms large. 

Despite a major decrease in mortgage rates since then, apprehension persists among home shoppers about the unpredictable trajectory of rates. 

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Despite some public sentiments that now is an unfavorable time to buy, that just isn't the case for those that have the interest and ability to afford a Shore property.  In fact, the current market offers unique opportunity to those who can ignore headlines meant to fear-monger. Here are five reasons supporting the idea that purchasing a property at this juncture is prudent, along with potential regrets for those opting to wait:

Flexibility to Refinance Later:

High mortgage rates may initially appear burdensome, but homeowners aren't locked into the same rate indefinitely.  Post-purchase, if rates decline, homeowners can explore refinancing at a lower rate, often referred to as "Date the rate, marry the house."

30-year interest rates have declined significantly in the past week, and further cuts are expected in 2024, with many predicting rates will reach 6% by the end of next year.  Remember, lower rates will bring more competition as more home-buyers enter the market.

Rising Home Prices:

Despite declining mortgage rates, home prices are on an upward trend.  Resilient home prices, even amid warnings of potential declines, suggest that waiting might lead to higher purchase prices. New Jersey has been near the top of the biggest average appreciation, at 9% as of September's data. 

The most recent sales data for Cape May County shows an appreciation increase of 6% for single family homes and condo/townhomes, year-to-date.  

Reduced Competition

High mortgage rates have deterred some home shoppers, resulting in decreased competition.  Buyers who remain in the market have increased negotiation leverage.  Compared to the intense competition during the pandemic, today's market offers more favorable conditions for buyers.

Increasing Inventory

While concerns about low inventory persist, there are signs of improvement.  Nationally, inventory grew by 5.1% from September to October, with experts anticipating a potential increase in homes entering the market.

In Cape May County, the most recent sales data (October) shows inventory increasing 8.5% for single family homes and condo/townhomes, compared to the same time last year.  Price reductions and a rise in the number of homes for sale suggest a shifting market in favor of homebuyers.

Personal Timing Matters

Market conditions, including high rates and low inventory, may pose challenges, but personal desire to own a property at the Shore, waiting might not be the best course of action.

While prevailing market conditions might dissuade some potential homebuyers, strategic considerations such as the potential for future refinancing, rising home prices, reduced competition, increasing inventory, and the alignment of personal circumstances can make the current market an opportune time for many.  To put it simply, don't try to time the market, spend time in the market.

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