2018 in Review and A Look Ahead

2018 2019 real estate highlightsAs we say good bye to 2018 and enter into the second month of 2019, we can reflect on some of the highlights in the real estate market last year.  2018 was a good year; however, there are a few trends that we should keep our eye on.

Total Sales for December were flat (less than a 1% change from December 2017) and are down 6% for the year compared to last year. The number of properties that are in an Under Contract status are 9% lower than compared to 2017. Inventory; there are 2,197 total listings on the market in the entire MLS compared to 2,091 in 2017. The 2018 Median sale price of $343,000 has been on the rise since 2012 and remains about the same as 2017. Land prices are up 3% over last year.

Distressed inventory continues to drop. This includes both short sales and foreclosures. There are just 23 properties listed for sale that are either bank owned or short sale. These make up a very small percentage of inventory and sales as compared to 2013 when they were at record highs.

real estate highlightsFor the past three years, Kill Devil Hills has been the hottest market of all the areas on the Outer Banks. The average sales price there is just under $300,000 and well below the MLS average. Corolla has the highest average sales price at just over $560,000.

Just for fun, the most expensive home on the Outer Banks is listed at $5,499,000 and is in Southern Shores. This is a 14,000 square foot 6-bedroom Creekfront Home in the gated community of Martin’s Point.

real estate highlightsContrast this with the least expensive home located in Manns Harbour for $99,000.  This is a 750 sf. Mobile home. Any takers?

Looking ahead. We are looking at interest rates beginning to rise as the stock market shows signs of improvement after tanking in October 2018. Rates haven’t really moved since then but that could change. Overall, with prices stable and flat, a manageable inventory, and rates still below 5%, this could be a very opportune time to enter the real estate market, both as a buyer or a seller.

Rick Drumm 2018 2019 HighlightsPlease feel free to contact me if you are looking to buy or sell Outer Banks real estate.  I’d love to put my 23+ years of real estate experience to work you. Remember, “Homework” is what I do best!

Richard Drumm
rick@outerbanksblue.com

Outer Banks Beach House: Time to Buy or Sell?

Before I jump right in with a resounding “yes” I hope to answer more than the question of whether it is time to buy or sell an Outer Banks beach house. I want you to see the positive outlook for both buyers and sellers alike. I would like to think that anyone will do well from either side of the [negotiating] table as prices have not skyrocketed like the early-to-middle years of the previous decade. Given the current economic conditions and financial policies in place we should not see a bubble like that again in our lifetime, hopefully. Either way, the year-over-year gains is a confidence booster for all parties.

According to the Outer Banks Association, or REALTOR MLS, single family homes have seen modest gains in prices (~1.4% annually) over the past 5 years as well as shorter average time on market (~5.9% less time) and decreasing discounts off asking prices (less than 5% off, versus a little over 6%). These are some of the favorable market attributes from the sellers’ perspective. What’s in it for the buyers? Five years of gains (remember I said modest) instills confidence in the market. The gains aren’t enough to have buyers feeling “priced out” and, 5 years of gains shows that the tide has most likely turned for the next upcycle. To offset the small increase in cost of ownership, due to price appreciation, the interest rates are down about 1 full percentage point in that same time period; according to Freddie Mac. I even saw a 3.75% rate for a 30-year loan with no origination points on a lender’s rate sheet last week!! Since recordkeeping of mortgage rates has been tabulated by Freddie Mac in the early 1970s, this is the 2nd lowest average rate year we’ve seen. The lowest was in 2012. There is a lot of chatter out there in the markets saying that the rates could possibly go even lower.

When the conditions are right, it’s always a great time to buy or sell a home. Currently, we are in a favorable market for either side. If you are buying or selling a vacation rental home, now is one of the best times of year to get in the market, or get your home on the market for sale. The main rental season starts at the end of May. There is a strong demand to purchase rental homes and to time the closing to where the rental income begins flowing immediately, or shortly after closing. In many cases, rental deposits have already been taken and would be an instant bonus at closing for the buyers. The bonus for the sellers is that the discount (off of asking price) is at its lowest on the closings occurring between April and July, which translates to contract signing occurring between February and May.

adamFor a complimentary professional consultation for buying and/or selling Outer Banks real estate, feel free to call or email me anytime. I look forward to hearing from you soon.

Adam Burkhimer
(252) 256-0086
adamburkhimer@gmail.com

**All statistics and real estate statistical references are sourced from OBAR MLS 01/01/2011 – 12/31/2015