If you are thinking about selling your Outer Banks home, now is a great time to put it on the market. While in many geographic areas, the summer is the prime selling season; that is not true for the Outer Banks because it can be more complicated with the number of tourist in the area during summer season. However, once summer is over, the pace slows and buyers are able to experience the island in a more intimate way. Many buyers who want to purchase will visit in the summer and return in the fall after continuing to look to finalize the deal.
As the most recent MLS market report shows, inventory is down. This July inventory was the lowest since MLS started keeping track of inventory. Also, interesting to note, is the first 7 months of 2016 had the highest number of “under contracts” in over 10 years. So, if homes are selling and inventory is low then prices tend to rise. Already, the average sale price is up by 3% and the median price has increased by 5%.
Redfin, a national realty brokerage firm, did a study using 1.1 million home listings between 2011 and 2013 in 19 major markets and found that houses listed in the winter have 9% greater likelihood of selling, selling a week faster and selling for 1.2% more than list price than in any other season.
Low Short Sales & Foreclosures
The inventory of short sale properties in the Outer Banks has been reduced by 58% and current inventory of properties available for short sale is only 21 compared to 50 a year ago. Average sale prices on short sales increased by 26% compared to last year.
The number of Outer Banks foreclosures is also down by 35% and show a current inventory of 47 properties. Average sale prices on foreclosures increased by 17% compared to last year. The clearing out of this inventory reduces the supply of homes and will put continued upward pressure on prices.
Outer Banks buyers get serious in the fall. Many, may have already visited in the summer. They return in the fall to be able to view more properties as fewer homes are rented. A fall or winter purchase allows buyers to complete the transaction and still have time to prepare the home for the vacation rental market the following summer.
Another group of fall and winter buyers are in the market because they have to be. It could be a new job or a new baby as a family addition that is making the buyer more serious during the non-traditional buying season. Many of these buyers need to complete the transaction quickly and will pay top dollar to do so.
In most markets, spring is when you list homes for sale so that closing can occur over the summer and children can begin the new school year in the fall. Even in these markets, listing the home for sale in the fall and going against what everyone else does; makes your home one of the few available homes for sale. What better way to get great exposure than to limit your competition. With Outer Banks property at one of the lowest inventory in history, your property will stand out and get on more buyers top 3 lists then at any other time. Outer Banks buyers who are looking for a second home or a vacation home rental do not have to plan the logistics of school transfers and the moving of contents. Many vacation homes are sold furnished.
Interest rates are likely to remain low until after the election. Listing your home now will make your home more affordable due to this low interest rate environment. Once rates begin to increase, you home could become less affordable to more buyers.
Some homes show better in the fall and winter than in the summer. Maybe you have a fabulous fireplace, that will wow buyers viewing the home on a crisp fall day. Maybe you have a beautiful tree in the yard that is perfect for holiday lights. Maybe the view is outstanding once some of the deciduous trees lose their leaves and reveal a majestic view.
Generally, when inventory is low and there is less than a 6 month supply of homes, it is considered a sellers’ market. Prices tend to increase and there is more competition among buyers for the fewer homes available for purchase.
Postponing putting your property on the market can cost you opportunities. Of course, there are many personal reasons for wanting or needing to sell sooner rather than later and you should always consider these first. While some may believe waiting to sell may enable them to sell at a higher price, keep in mind the holding costs you will incur during the wait and the opportunities you may miss to reinvest.
If you are considering selling your Outer Banks home, vacation rental or investment property; contact Eillu today to discuss your options and find out how we will showcase your home to maximize exposure and get your home sold. We will create a dedicated webpage to drive traffic for your home. We can create a drone video to showcase the location and view of your home and distribute it to even more channels. Call today to see the difference Eillu makes. Yes you can expect more with Eillu!