Market Report - October 2020 October continued to be busier than the calendar normally suggests. Buyer activity remains higher than normal for this time of year, while in many segments of the market
Is Now The Time To Purchase Your Vacation Home?
Dated: February 10 2020
Is this a good time to invest in a vacation/second home on Hilton Head Island, SC?
This is a question that has been posed to me endlessly over the past few months. My answer has stayed the same anytime I have been asked this question in the past 6 months, a resounding, YES! Of course, most will say “Ron you’re a realtor, of course you are going to say buy now.” Well here is the data I have that will support this decision:
First and foremost, look at the data. We are at the largest shortage of homes available this area has ever seen. I could go into a lot of whys on this, but again let the data speak for itself. 30 years ago, birth rates in the U.S. began to increase at a rate like had not been seen since the start of the "Baby Boomer" generation. Then 12 years ago a real estate recession hit like our country had never seen before. Prior to the recession new home construction was staying on pace or ahead of the birth rate. When the recession hit builders basically took 5-10 years off from building depending on the area. Now fast forward to today. Those people who were born 30 years ago are looking for homes that just do not exist.
Second, it is important to look at what trends are happening in our Country. It used to be - you worked your job for 30-40 years then you retired to the beach or wherever you wanted to go. Today that is not the case. People are working from remote locations. We are more a service society than a manufacturing society. This allows people the freedom to work from various locations. People are looking for areas they can go stay for a few weeks and enjoy being able to walk to the beach. This allows you, the investor, to provide a need for someone who does not want to be tied up in a vacation home but is going to spend the money to use it for a few weeks. There are more people looking for vacation rentals to stay at than there have been in the past.
Third, mortgage rates are at an all-time low. The cost of holding a second home has decreased. If you are financing the vacation home why would you wait until rates go up? You can save 10's of thousands of dollars by locking in at these historic rates.
Finally, the cost of real estate is affordable. Real estate on Hilton Head Island is predicted to go up by 3-5% per year for the next few years. This means waiting will cost you money not just because interest rates could be higher, but also because housing costs will be higher. We are seeing a busy winter season here in Hilton Head with sales. This is an indication of what is to come.
Above are a few of the reasons I believe now is a great time to pick up a vacation home here on Hilton Head Island. My next blog will get into the financials of what it looks like as an investment opportunity.
Enjoy the Beach!
Experienced Owner with a demonstrated history of working in the real estate industry. Skilled in Negotiation, Sales, Investment Properties, Real Estate Transactions, and Short Sales. Strong entreprene....