A Time To Buy ... Not A Time to Wait
I can't speak for the entire country ... since all real estate is local. Although we talk about real estate like it was all the same throughout the country, that is not the case. It's often much easier to talk about it that way from a national speaker or writer with columns all over the country; but point in fact, it is a local matter. So my point of view is looking only at "Ocean City, New Jersey" based on renting here for over 25 years before buying a property, owning properties since 1988 and trading up several times, from renovating two properties, and building a new one after the land value went up way beyond the original purchase price. Finally, I have also been a real estate agent in Ocean City (NJ) for the past twnety years with my main focus and area of interest being the Northend and Gardens sections ... from Sixth Street north to the end of the island. That is the area where our agency, Keller Williams Realty (the former French Real Estate) is located and where I not only work, but also live and play.
So that long paragraph was meant to establish some credibility for my point of view.
The most significant factor out there right now is cheap loan money that can set you up with 3-4% loans if you have a good credit rating and some additional monies to put into the project. Obviously, there are a variety of price points depending on what you are considering: smaller condominiums with less bedrooms, rental property, property further back from the beach, and finally, single family property wherever.
The second factor of great importance is to find an appropriate agent who can provide you with a lot of information from present sale property to sold property over the last few years to an understanding of the dynamics of the shore property market including location, rental considerations, etc.
I personally believe that the present market must be viewed in light of the particular property category that you might be considering: be it vacant land, multi-units, condominiums, or singles. Let's talk just a bit about these four categories: vacant land and multi-units are quite limited in opportunity, condominiums are the largest category to consider, and single families are next although tightening up quite a bit. Both condominiums and single family have slowly been moving toward becoming a "Seller's Market" here in our area.
My final thought would be that a purchase right now (whatever it might be) would be the initial foundation that might set you up for a second or even later purchase which will eventually get you what you might be looking for. Let me provide an example: my first purchase was a 1920s single on a very small lot, my second purchase was a larger single on a bit larger lot. In both cases, we put a lot of personal effort into turning both properties around. A bit more with the first one than the second one. Looking back, I should have kept both of them ... but I did not. Our third property was a much larger lot with an older building in questionable shape. We did nothing to this building except keep it in operation as best as possible without spending a great deal of money. But in about 3-5 years we determined and after an appraisal realized that the land value was now almost 3 times what the original purchase had been. That was when we build a new house on the lot.
This kind of opportunity isn't always available. But it still is out there ... particularly with available loans to get you rolling along. At least, investigate the potential opportunity. Maybe I can be of assistance.
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