Right now! Interest rates and prices are on the rise – that’s a double whammy for a buyer. Two months ago, you could borrow $1M at 3.25% fixed for 30 years, which would have cost you $52,224 principal and interest per year. Now, you can borrow $1M at 4.25% fixed for 30 years, which will cost you $59,028 principal and interest per year. That’s a $6,804 swing in a month; that’s over 10% less purchasing power than two months ago.
Couple that with rising prices, and you better get moving. A great example of the movement in prices is 11 Crooked Lane, Lot 1. It sold for $775K 10 months ago. It just came back on the market, with HDC approved plans, for $1.545M. I know getting through HDC can be a bear, so there is definitely value there, but $1.545M is just about double what he paid for it less than a year ago! You can argue that the $1.545M is just an asking price, but I know he has had an offer close to that price within the last week. Of course, there are probably examples of prices moving in the opposite direction, but if you believe in my credentials as a Nantucket real estate professional, believe me now, prices are rising.
Summer is flying by – as the saying goes, time flies when you are having fun!!! Enjoy the Faraway Island!!!