With the colder weather moving in, a day at the beach may be the furthest thing from your mind. However, if you have been considering purchasing a beach house, the “off season” is one of the best times to do so! Here are five reasons why now is the best time to buy on Fire Island:
1. Time is On Your Side
Buying a beach house in the offseason gives you plenty of time to complete any home renovations or improvements ahead of the busy Summer season. With many Fire Island communities prohibiting construction work during the Summer months, you would have to do any renovations before the peak season starts in July. Buying before year’s end will give you enough time to do smaller scale projects like a kitchen or bathroom update, a new deck, or whatever finishing touches the property you select might need.
2. Decreased Competition from other Buyers
Given the current interest rate environment, many buyers have opted to wait on the sidelines before jumping in to making a purchase. This puts those who are ready to buy now in a favorable position, since there is a lower level of competition. If you are able to take advantage of this opportunity, you will have your pick of inventory. Which brings us to our next point…
3. Interest Rates Aren’t Permanent
It may seem counterintuitive to shop now while interest rates are at high levels relative to the last several years. However, if you do opt to take advantage of the lower levels of competition in the market, you can always refinance your mortgage down the line, when interest rates come down again. As the saying goes, “marry the property, date the rate”. Many lenders are even offering incentives allowing you to refinance your mortgage in the future at zero cost. We have been in an extreme sellers’ market for 3 years and we are finally finding a bit more equilibrium. Because Fire Island is such a unique place, with a limited supply of homes, we don’t tend to experience huge gluts of inventory like other markets do, so when the right property comes along, you don’t want to let the opportunity pass you by just because of a temporary condition like interest rates. Plus, as soon as interest rates do start trending downward again, all of those buyers that have been sitting on the sidelines are going to jump right back into the market, creating another frenzy that will likely cause prices to start climbing again.
4. Inventory is still low, but Improving
Whether you are looking for your first beach house, an upgrade, downsize, or rental investment property, there are homes available ranging from adorable “starter” beach bungalows under $1M to immaculate new construction homes priced at $4M and beyond. The Covid frenzy has eased so inventory levels, while still relatively low, are improving, giving buyers more options to choose from than we have seen over the last 3 years.
5. It’s a Great Investment… That you Can Actually Enjoy
While buying a beach house is a luxury, it can also be a great investment. Whether you choose to rent your property out for cash flow, or just hold on to it for appreciation, investing your money in real estate is a great way to build long term wealth. Historical price appreciation for homes on Fire Island has been extremely strong, and during inflationary periods, owning hard assets like real estate is the best way to defend against your money getting devalued by inflation. Best of all, you can enjoy the property and create lasting memories with your friends and family, while benefiting from that wise financial decision.
Whether you decide to buy now or later, we are always here to guide our clients through every step of the buying process. We recognize that it is our privilege to be of service to you. Contact us today to learn more about the current Fire Island real estate market or to schedule a showing at any Fire Island listing from Kismet to Davis Park.