How many times have you heard – “I remember when I could have bought such and such a lot / home for some unbelievable low price back in – a not so distant year”. Most people who live in the Outer Banks have a story about the deal they did not act on, at the time – and lived to regret it.
Perhaps, you have vacationed here for decades and made many pleasant memories with your family, only to realize that you could have owned a place of your own for nearly what you have paid in rentals over the years.
Well, it is not too late and there is no better time than now to own a place of your own! Outer Banks real estate is a great asset to hold and will provide many years of enjoyment to your family as well as healthy investment returns.
The Infographic on this blog highlights the 2015 Outer Banks Real Estate Sale Statistics. You can download the complete 2015 report here.
Major highlights from the report are:
- The number of units sold was at the highest level since 2005
- Inventory was at its lowest level since the MLS started gathering the information in 2007
One does not have to be a rocket scientist in economics to know when demand is increasing and supply is reduced; that prices will increase. Clearly, the indicators are in place where there is going to be upward pressure on prices. It is time to act now and make a deal on a new home, existing home or land, before the market forces take hold and prices may become out of your reach.
Interest rates have been at historically low levels for quite a few years, but this is not likely to last forever. Low oil prices and it being an election year may have a neutralizing affect. The credit markets have stabilized and mortgages are easier to qualify for compared to recent years. The Outer Banks is a seasonal market and activity starts to pick up in the spring. The early bird catches the worm and early buyers in the market are likely to find the best deals.
Another indicator supporting increasing pressure on prices is the reduction in the number of Short Sale and Bank Owned properties.
- The number of residential properties that were sold as Short Sales declined by 16%
- The number of residential Bank Owned properties sold declined by 37%
Overall, the number of residential distressed property (short sales and bank owned) sold was down by 30%. Interestingly, while the average sales price for short sales decreased by 2%, the median sale price for short sales increased by 13%. This could be indicative of reaching the bottom of the distressed inventory where the ‘lower quality’ inventory affected the average price calculation more than it would the median calculation. Overall, the average price for residential distressed property sold was up 3%; the median price was up by 9% in 2015.
There is nothing like living on a barrier island to realize they are not making more of it; especially when one can walk from the sound to the ocean without getting winded!
- The number of lots sold declined by 5%
- The average cost for a lot increase by 7%
- The median cost for a lot increased by 10%
While there are still undeveloped lots for you to build your dream house, the number is declining every year. Once again, when the supply is reduced and even if demand stays the same; the price will increase.
Frequently, the commercial market is overlooked with reported statistics. While there were not a large number of commercial transaction in 2015 (34), it was a 17% reduction over 2014. Despite fewer transactions, the average sale price increased by 12%.
- The median sale price increased by 92%
- The active inventory at the end of 2015 was down by 23%
For comparison, the active inventory for residential properties is down by 11% at the end of 201
If you add up all of these factors, you will realize that Outer Banks is an ideal place to plant your “feet in the sand” and buy or build your castle. You can design the beach house of your dreams or choose from the many beach houses already for sale. Start making memories with your family in your own rental home while profiting from positive cash flow and other ownership benefits.
If you live in the Outer Banks, learn how you can stop throwing your money away with rental receipts and own your own place for perhaps even less than you are paying in rent. Learn how the tax advantages of home ownership can change your bottom line and earn equity for years to come.