Should I Buy My Clearwater Beach Condo Now or Pay More Later? — November 2013

Real Estate Agent with Rich & Cindy Team at Coastal Properties Group International

You may be wondering "Should I buy my Clearwater Beach Condo now or pay more later?" Forbes magazine recently published an article on a similar subject but for national trends. Their conclusion was that there at least two big reasons why it might make economic sense to buy now rather than waiting. A summary of the article is on the Keeping Current Matters website.

We thought it would be helpful to our buyers to answer the question about buying a Clearwater Beach condo now rather than later. The two biggest factors to consider are:

1). What is happening with pricing trends for Clearwater Condos?

2). Where are mortgage rates headed?

Should I buy my Clearwater Beach Condo Now or Wait? -- Impact of Pricing Trends

Median home prices in many parts of the country, have been on the rise. Clearwater Beach Condo pricing trends have followed his same path. The median price for Clearwater Beach condos has almost doubled since 2010 as shown in the chart below (data for closed sales on Clearwater Beach Condos from the Multiple Listing Service).

History is not necessarily a reliable predictor of the future, but many experts feel that while beachfront condo prices were unreasonably high in 2005 and 2006, the buyer market overreacted and is now correcting for the plung in prices that occurred in 2006. Historically, real estate has realized an appreciation of about a 4% annual rate over time, so it seem reasonable that the current upward pricing trend will continue.

What does this mean to buyers of a Clearwater Beach condos? It is likely that if you wait, you will be paying more later. For buyers who are financing, there are other implications as well. Those who wait will likely be financing a larger loan so payments will be more even if the mortgage rates stay the same (see below). The down payment will be larger, so qualifying for a loan may be harder based on the higher monthly payment as well as the bigger down payment.

Clearwater Beach Condo price trends

Should I buy my Clearwater Beach Condo Now or Wait -- Impact of Mortgage Trends

Recent mortgage rates are still at historical lows, and most real estate experts and economic forecasters believe that there are many economic pressures that will make mortgage rates rise to match more typical historical norms. To get a perspective on of how low current rates are, take a glance at the long term historical rates in the chart below.

How does this impact you as you contemplate the question “Buy my Clearwater Beach Condo now or wait?” Consider a hypothetical example. Buyer “A” buys now and gets a $300,000 30 year fixed rate mortgage at 5%, while buyer “B” waits and finds rates have gone up to 6%. Not only is buyer B be paying almost $200 per more per month, but buyer B will pay $67,746 more in interest over the term of the loan. If Clearwater Beach condo prices go up, buyer B might also paying on a bigger mortgage so the monthly payments and total interest may be even higher than this.

Mortgage Rate Trends


Based on the information we have, it seems likely that you should buy your Clearwater Beach Condo now or expect to pay more later.

Please call us at 800-964-9841 if we can answer any questions you might have or help you in your search for your perfect Clearwater Beach condo.

Please visit us at or give us a call at 800-964-9841

Best regards,

The Rich &Cindy Team
Agents of Keller Williams Gulfside Realty


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