Category Archives: Sell on the Outer Banks

December 2017 Outer Banks Real Estate Market Report

 dec 2017 OBX real estate market report kite surfing - Photo: Andrew Gosine

The Outer Banks Association of Realtors released the December 2017 MLS Statistical Report – you can get the full report here

No doubt about it.  Last year, 2017, was a banner year for real estate on the Outer Banks.  It is the best year since 2005 for unit sales and volume sales; when the market was really hot before the down turn.  Average and median sale prices are the higher than 2014.  Days on market are down 43% and inventory levels are at the lowest since 2010.

Real estate unit sales in the Outer Banks for the year ended December 2017 were 2,560 units; an increase compared to December 2016 from 2,298 units; an 11% increase.  Recorded volume for the year ended Dec 2017 was $839,032,277 compared to last year which was $745,691,745; a 13% increase.

Some highlights from this month’s report follows. 

Overall Market

Inventory continues to be the low for all of this past year and is trending lower  in each month going back to 2010.  Residential inventory is down 5% compared to the end of 2016.

Lots and land quantity sold increased by 16% from last year.  The average sale price for lots fell by 14% while the median price increased by 4%. Land inventory is down by 11% compared to last year.

Commercial unit sales are down by 19% at the year-end compared to last year.  Only 26 commercial units were sold compared to 32 last year.  The average and median sale prices have little relevance with such a small sample and appear skewed from a large sale last year.  Commercial inventory is down 16% compared to last year with only 58 units active on the market compared to 69 units last year.

Distressed Property

For the year ending 2017, overall distressed sales are down by 4% with 108 units sold.  The average price has not changed but the median price has increased by 7% compared to last year.  Total volume sold is down by 7%.

There were 28 residential short sale units sold, compared to 31 at the end of last year.  Average price for short sales increased by 2% while the median price increased by 9% from one year ago.  

Sales for bank owned properties fell by 1% from 81 to 80 units this year. The average sale price for Bank Owned property fell by 5% compared to last year; while the median increased by 3%. 

The effect distressed real estate will have on the overall Outer Banks market will continue to diminish as foreclosure and short sale inventory is depleted and the market returns to pre-recessionary levels of distressed real estate. 

Residential Real Estate

Single Family

For the year ending Dec 2017, single family units sold increased by 12%; with the dollar volume increasing by 16% compared to unit sales and volume in 2016.

Single family unit sales increased from 1531 at the end of 2016 to 1712 at the end of 2017.

The average single family home price increased by 4%, this is the same increase reported for Nov 2017.  The average sale price for a single family home in the Outer Banks is $405,273 up from $391,538 for Dec 2016.  Median sale prices are up 3% to $325,000.

Condos

Condominium sales in the Outer Banks increased by 9% with the associated dollar volume up by 12%  from the end of 2016 to the end of 2017.

Over the same time period, the average price of condos has increased by 3%; from $254,785 to $261,832.  The median condo values shot up 10% over the past year from $235,000 to $258,000.

December condo unit sales were 193 compared to 177 a year ago.  Unlike many other markets, the Outer Banks did not see an oversupply of condo construction during the boom years and current demand for condos has been strong in 2017. 

Lots and Land

Over 2017, residential land unit sales increased by 14%.  The average sale price fell by 8% while the median price was up slightly at 1% compared to last year.  Residential lots average price is $111,967 with the median at $75,000.

The figures for all land show an increase in unit sales of 16% with the average sale price down by 14% but the median price up by 4%.

Market Highlights

Overall Days on the Market for the all residential properties is down by 43% in December.  Outer Banks properties are selling much faster; especially new inventory.

New Construction building permits finished 2017 below 2016 levels with 281 units compared to 292 last year.  Manteo permits has the largest decrease from 24 in 2016 to 9 in 2017, Hatteras Islands permits were 47 in 2016 to 36 in 2017, Nags Head decreased by 5 to 30 in 2017.  Permits increased on Roanoke Island from 27 to 38 in 2017 and increased in Southern Shores from 21 to 31 in 2017.

Outer Banks Town Statistics

For the year ending December 2017 median sale prices for the towns in the Outer Banks and the percent change compared to year end 2016 appear below:

Dec 2017 Median Home Prices & Percent Change for Outer Banks Towns

Dec 2017 Median Home Prices & Percent Change Table for OBX Towns

Hatteras Island experienced the largest percentage gain of 13% followed closely by Corolla at 12%.

The Outer Banks real estate market had an excellent year in 2017.  From client interest over the past few weeks, 2018 is on track for another solid sales year. 

If you have been thinking about an Outer Banks vacation home purchase, second home purchase or permanent home, now is the time to act.  Purchasing power will decrease once the anticipated mortgage rates increase.  Smart buyers and investors will lock in rates now before the increase. 

The Outer Banks rental market continues to be strong to provide income from the investment and enjoyment for the family for years to come. Buy now to position the home for the 2018 rental season.

Buy with Eillu and save more with our buyers rewards plan. The Outer Banks continues to be named a top beach destination every year.  Beach nourishment has recently been completed for a large portion of Dare County beaches and will ensure strong future appreciation for real estate. 

If you have considered selling your Outer Banks home, now may be the best time.  The lower inventory levels will allow your property to be seen with less competition.  The strong demand will sell your home with fewer days on the market.  Our 1.5% listing commission will save you thousands of dollars!

Schedule an appointment today to find your vacation rental property, second home or investment property. 

Eillu listing commission 1.5%       Eillu buyers rewards CTA


Tax Reform Threatens the Holy Grail of Real Estate – The American Dream of Home Ownership and the Mortgage Interest Deduction

Tax Reform Impact on Real Estate

Most people would agree that the US tax code is too complex and should be simplified. Once you move from the general concept of simplification to the execution is where the difficulties occur. Personal self-interest favors keeping tax deductions one qualifies for while eliminating deductions of one’s neighbor.

Mortgage Interest Deduction

Tax deductibility of mortgage interest has been favored by the real estate industry for, what seems like, forever. Actually, it dates back to 1913 and most consider it sacred and not to be touched by any reforms. The current proposal leaves it in place, but ineffective or irrelevant, to all but the wealthiest Americans.

President Trump’s tax overhaul plan removes every deduction except for the home mortgage interest deduction and charitable contributions. Many experts argue, nonetheless, the plan effectively makes both these deductions irrelevant by doubling the standard deduction to $12k for single tax payers and $24k for married couples. No longer would state and local taxes be deductible. Effectively, over 80% of homeowner’s who itemize under the current tax system would see a greater benefit by taking the standard deduction under the new plan.

For example, a couple with a $500k mortgage (which is much higher than average) at 4% interest would pay about $20k in interest. That couple would then have to donate $4k to charities to match the standard deduction under the new plan. Fewer homeowners would choose to itemize deductions as the standard deduction would be more beneficial. This would effectively eliminate the incentive to buy homes and donate to charities. Many experts believe this could further decrease the US homeownership rate, which is currently 63% down from 69% in 2004.

Is the US destined to become a nation of renters?

The National Association of Realtors suggest most middle income homeowners who currently itemize would likely pay higher taxes due to the elimination of state and local tax deduction and dependency deductions that would be folded into the higher standard deduction.

A recent Fortune article states it a little differently, “The elimination of mortgage-related tax savings for most homeowners, and reduction for others, compounded with the loss of tax savings from deducting property taxes means the after-tax cost of home ownership will increase. A taxpayer in the 25% tax bracket with $11,000 in mortgage interest and $5,000 in real estate taxes would receive tax savings from these itemized deductions of $4,000, or $333 per month, under the current law. The elimination of the home-ownership tax subsidies means that the after-tax cost of home ownership will increase”.

Rental property owners will likely continue to enjoy favorable tax benefits.

Rental Property

While the proposal does not have all the details specified, it does not appear to reduce the tax subsidies benefiting owners of residential rental real estate.

Residential rental property owners and vacation rental property owners may continue to deduct mortgage interest paid to purchase the rental property and can also deduct state and local property taxes. These items are not considered itemized deductions but are deductions in computing net rental income.

Eliminating the state and local tax deduction under the proposal only applies to an individual taxpayer’s itemized deductions. Rental property owners will still receive the federal tax savings from both mortgage interest and real estate taxes. Clearly, the proposal creates a stark difference in the tax treatment and incentives between owner-occupied homes and rental properties.

Furthermore, rental property owners can also deduct the cost of maintenance and depreciation. When it comes time to sell, the rental property owner can use a 1031 exchange and avoid taxes on the sale and acquiring a like property. The proposals reduced tax rate of 25% for pass through will further benefit real estate rental industry.

Individual Tax Rates

Tax brackets under the new plan would also be reduced from 7 currently to 4. The top tax bracket would be reduced from 39.6% to 35%. Next, there would be a 25% and 12% bracket. The fourth bracket in the plan was not described in detail but would be for the highest income households and exceed the 35% bracket.

The alternative minimum tax and estate tax would be eliminated from the tax code.

The plan did not define tax treatment for dividends or long term capital gains, or the profit on the sale of one’s primary residence.

The gift tax was also not mentioned in the proposed tax plan. Gift taxes are payable on gifts of more than $14k annually. “Gifts” are commonly used by first time homebuyers.

Small Business

Changes in taxes for small or family owned businesses was included in the plan but not well defined. Some of these are organized as flow through businesses or pass through (sole proprietorship’s, partnerships or S Corporations) but it is unclear if all business structured as such would have a 25% maximum tax rate or if it would only be limited to an organization that meets criteria for “small” or “family owned”. It could also be defined with a revenue limit. Many legislators have previously indicated that “professional service” companies like healthcare, legal, accounting would not be eligible for the 25% maximum rate.

Corporate Taxes

The Corporate tax rate is to be reduced to 20% in the proposal. This is believed to work as an incentive to keep companies in the US instead of moving profits offshore. However, labor and raw material costs would have to be competitive to wipe out the incentive to operate globally in the most efficient manner.

Expensing Structures

The tax proposal would like to create incentives for companies to invest in new assets by allowing full depreciation or immediately expensing to lower taxable income. While all eligible assets were not specified, structures were specified, which is believed to mean buildings. If borrowed funds are used to purchase new assets and then the assets are depreciated immediately then the interest expense would not be deductible.

The tax proposal does keep the low-income housing credit to continue to provide an incentive to developers to build affordable housing.

Tax planning and preparation can be complicated, hopefully tax reform will simplify the process for most Americans. In the meantime, it is always best to consult with an expert in this area for specific advice that considers your exact circumstances. The Eillu team has decades of experience selling real estate on the Outer Banks and have insight to structure 1031 exchanges and more complicated deals. Schedule an appointment today to learn how to maximize the profit on the sale of your home with our low real estate listing commission.

MLS Monthly Outer Banks Market Report


September 2017 Outer Banks Real Estate Market Outlook and Current Statistics

Outer Banks Real Estate Market Outlook Sept 2017

The Outer Banks Association of Realtors released the September 2017 MLS Statistical Report – you can get the full report here.

Real estate sales for September 2017 in the Outer Banks increased slightly from August with 156 units to 158 units. This is almost the same as September 2016 sales of 159 units. Under contract units increased by 6% to 442 from August reported 419 units under contract. The average home price increased by 4% compared to 2016. The median single family home price has increase by 2% in 2017 while condos have increased by 5% in 2017. Some highlights from this month’s report follows.

Overall Market

Residential inventory decreased by 10% in September following last month’s 8% decrease both compared to last year. The inventory trend has continued downward for the past few months. Active residential inventory is 1484 units. The quantity sold increased by 11% following last month’s 11% increase; with volume sold up by 16% following the same increase last month.

Lots and land quantity sold increased by 6% after last month’s increase of 8%. The average sale price for lots fell by 191% and while the median price increased by 4%. Land inventory is down by 13% compared to last year.

Commercial unit sales are down by 24% following last month’s decrease of 20%. Only 16 commercial units were sold compared to 21 last year. The average and median sale prices have little relevance with such a small sample and appear skewed from a large sale last year. Commercial inventory is down 22% compared to last year with only 57 units active on the market compared to 73 units last year.

Distressed Property

Distressed sales increased in September and were 9% of all residential sales compared to 2% reported last month. There were 22 residential short sale units sold, compared to 24 short sales this time last year; an 8% change from one year ago. The average sale price decreased by 12%. The median sale price increased by 6%.

Sales for bank owned properties increased by 11% from 57 units to 63 units compared to last year. The average sale price for Bank Owned property fell by 8% compared to last year; while the median decreased by 1%.

Overall, the quantity of distressed property sold increased by 5% compared to the same period in 2016. The average price decreased by 11% and the median increased by 3%. Total volume sold is down by 8% compared to last year.

The effect distressed real estate will have on the overall Outer Banks market will continue to diminish as foreclosure and short sale inventory is depleted and the market returns to pre-recessionary levels of distressed real estate.

Residential

Single family unit sales increased by 13% slightly higher than the 12% reported last month, with 1275 units compared to last year 1130 units. The volume sold increased 17% with the average sale price increase by 4% and the median sale price increased by 2%.

Condos unit sales increased by 12% following last month’s 16% increase compared to last year. September condo unit sales were 151 compared to 135 a year ago. The volume sold increase by 10% following last month’s 14% increase. Median sale prices for condos increased by 5% compared to last year. Average sale prices fell by 1%, compared to last year. Unlike many other markets, the Outer Banks did not see an oversupply of condo construction during the boom years and current demand for condos has been strong in 2017.

Residential land unit sales increased by 3% in September. This follows the 5% YOY increase reported in August and a 19% increase reported in July. The average sale price fell by 11% while the median price was unchanged compared to last year.

Overall Days on the Market for the all residential properties is down by 39% in September following the reported 23% decrease in August. Days on the market is 124 versus 203. Upon closer inspection, for the 800 units sold since Jan. 2017 the average days on the market is a startling 46 days. Outer Banks properties are selling much faster; especially new inventory.

New Construction building permits are down by 16% with 184 units compared to 220 last years. Building permit value decreased by 21%.

Outer Banks Town Statistics

The September 2017 median sale prices for the towns in the Outer Banks and the percent change compared to 2016 appear below:

Sept 2017 OBX market report

Sept 2017 OBX market report data table

Corolla experienced the largest percentage gain of 13% compared to 2016. The next highest YTD increase was Hatteras Island at 8%; these towns are unchanged from June, July and August.

The Outer Banks real estate market is on track for a solid sales year. OBXMLS reports 442 under contract compared to 419 units reported last month. October is a great time to visit the Outer Banks and view real estate as the crowds have reduced and the weather is warm during the day but with low humidity and cool at night. Experience the colors of fall on the OBX; the marsh grass gets a pewter color, the sea oats rustle in the breeze and the deciduous trees change into the reds and golds!

If you have been thinking about an Outer Banks vacation home purchase, second home purchase or permanent home, now is the time to act. Purchasing power will decrease once the anticipated mortgage rates increase. Smart buyers and investors will lock in rates now before the increase.

Buy with Eillu and save more with our buyers rewards plan.

If you have considered selling your Outer Banks home, now may be the best time. The lower inventory levels will allow your property to be seen with less competition. The strong demand will sell your home with fewer days on the market. Our 1.5% listing commission will save you thousands of dollars!

The rental market continues to be strong to provide income from the investment and enjoyment for the family for years to come.

The Outer Banks continues to be named a top beach destination every year. Beach nourishment has recently been completed for a large portion of Dare County beaches and will ensure strong future appreciation for real estate.

Schedule an appointment today to find your vacation rental property, second home or investment property.

Eillu listing commission 1.5% Eillu buyers rewards CTA


How Will NFIP changes Impact you Outer Banks Home Purchase or Sale?

impact on Outer Banks for National Flood Insurance Program Changes

NFIP Expiration Date Extended to December

The National Flood Insurance Program (NFIP), administered by Federal Emergency Management Agency (FEMA), was set to expire on September 30, 2017.  With consideration for the areas impacted by Irma and Harvey, the US Senate voted to extend the NFIP on September 7; the House of Representatives passed the legislation on September 8th and the President signed it into law later in the day.  This is a reprieve but not a solution.  The deadline for something to be done is now December 8th 2017.

The new legislation provides 3 months to find a solution.  It is time needed for the folks impacted by recent storms and for law makers to come up with a real long term solution.  The National Association of Realtors (NAR) advocates a comprehensive re-authorization of the NFIP to cover the 5 million homeowners and 22,000 communities around the US.  The NFIP has been extended 17 times and lapsed 4 times between 2008 and 2012.  It is time to quit kicking the can down the road and find a long term solution.

NFIP Purpose

Established in 1968, the NFIP has played an essential role in efforts to prevent and recover from flood disasters.  Floods are the number one disaster in the US for the number of lives lost and property damage.  Flood insurance coverage is mandatory for property in a high risk area where the mortgage is provided by a federally backed or regulated lender.

The NFIP encourages communities to implement flood plain management policies and provides affordable insurance based on flooding risk as determined by the flood insurance rate maps.  The preliminary rates maps for Dare County were released last year and lowered the risk for 15,970 buildings.  Flood maps are revised every 10 years. 

As our previous blog post concluded: “just because you no longer are required to have flood insurance does not mean that you should cancel the policy.  A preferred risk policy may reduce the cost and provide valuable protection.   It could also be a lower cost option in the long run should the maps revert back.  Keeping the insurance in place may also make the property more saleable and provide the additional option of the new owner assuming the insurance policy after the sale.”

“Remember, annually over 20% of all flood insurance claims are from properties not in a designated Special Flood Hazzard Area (SFHA).  Operate accordingly.”

Many people do not carry flood insurance unless they are required to.  Only an estimated 20% of homeowners in the area affected by Harvey even bothered with flood insurance, a number that has been dropping in recent years.  This trend has complicated and driven the NFIP further in debt since the government eventually pays for damages not covered by insurance.  Katrina, for example, had a flood insurance payout of $16.3 billion. But Congress authorized supplemental spending of more than $100 billion to provide relief and temporary housing and to fix the broken levies. Harvey and Irma are likely to have a federal cost even higher.

NFIP Impact on Real Estate Sales and Purchases

The NAR released a statement “When the NFIP expired in 2010, over 1,300 home sales were disrupted every day as a result. That’s over 40,000 every month. Flood insurance is required for a mortgage in the 100-year floodplain, but without access to the NFIP, buyers simply couldn’t get a mortgage or vital protection from the No. 1 cause of loss of property and life: flooding.”

“This problem affects far more than coastal communities, and prospective homeowners aren’t the only ones at risk. Policyholders in over 22,000 communities across the country depend on the NFIP to protect homes and businesses from torrential rain, swollen rivers and lakes, snowmelt, failing infrastructure, as well as storm surges and hurricanes. When that lifeline is cut off, the NFIP can’t issue new policies or renew existing residential or commercial policies that expire. That means current home and business owners may find their most important asset unprotected.”

“Last year was the third largest claims payout year in NFIP’s history, costing more than $4 billion. While there were five billion-dollar floods, including Hurricane Matthew, four of the five were inland, and the largest single event was in Baton Rouge, Louisiana in August, just one year out from the NFIP’s expiration date.”

If the NFIP were to expire without a reauthorization or alternative solution, it will prevent new flood insurance policies from being issued.  Existing policies will remain in effect but claims could be put on hold until new legislation is passed.  There are few private insurers for flood coverage.  With NFIP in place, private insurer’s rates need to be competitive with NFIP, which are currently subsidized.  If the NFIP were to expire, flood insurance rates could become unaffordable.

NFIP History

The NFIP is over $24.6 billion in debt.  Storms like Katrina going back as far as 2005, and Sandy in 2012 have placed the agency in debt before claims for Harvey, Irma and even Marie are even tabulated.  Back in 2012, the NFIP was extended for 5 years and called for rate increases.  Many coastal residents felt they were bearing the brunt of the increase while not contributing most of the costs of the debt. 

Many recent storms had a greater impact inland than on coastal areas.  Willo Kelly, Government Affairs Director for the Outer Banks Association of Realtors and Outer Banks Home Builders Association, notes that up until Hurricane Matthew last year, North Carolina policyholders were paying more into the program then they were getting back in claims.

Finding Solutions

Reauthorizing the NFIP while encouraging the private flood insurance market development can provide options for a stable, affordable and sustainable flood insurance market.  Fifty years ago, when the NFIP was created, the private sector had no interest in participating since the risk was high and unpredictable.  Today, however, technology has made it easier to manage and predict the risks.  Encouraging the private flood insurance market to develop while phasing out the role of the NFIP can provide a long term viable solution.

One reform bill, the 21st Century Flood Reform Act, includes new coastal designations which could result in increased premiums for some property owners.  It would include an inland rating and a coastal rating.  The bill includes a provision where rates could rise as high at $10k per year, which is unaffordable for most property owners.

Congress passed the Biggert-Waters Flood Insurance Reform Act of 2012 (BW-12) in 2012, a five year reauthorization of the NFIP that revised the national mapping program and certain rate increases to achieve fiscal soundness by moving away from subsidized rates to full actuarial rates that are more reflective of risk.

Congress later passed the Homeowner Flood Insurance Affordability Act of 2014 (HFIAA), which repealed certain parts of the 2012 act (BW-12), restored grandfathering, limited certain rate increases and changed the approach for fiscal soundness of the fund by adding an annual surcharge to all policyholders.

Up until 2005 the NFIP was largely self-sustaining.  The NFIP covered claims with insurance premiums; and occasionally needed to borrow (and repay) funds from the treasury.  Evidence of mismanagement goes back to 2005 with Hurricane Katrina, where claims for uninsured damages were paid out and cost the program millions of dollars in additional losses.  Experts argue current rates in North Carolina cover the cost of claims. 

Long Term Planning & Management

Critics of the NFIP cite the mere existence of the agency and the subsidized insurance rates encourages development in flood prone areas.  As more flood prone land is developed, losses continue to mount. 

Repetitive flood losses on the same dwelling without raising the structure or other abatements is not a smart use of resources when flooding is likely to reoccur.  There may also be some areas that may require a retreat rather than rebuilding. 

There are several Texas communities where the same dwelling(s) has flooded 3 times in the last 3 years.  Hard hit is Willow Meadows, Houston, and Meyerland to name a few.  Some are seeking a home buyout where the resulting open land could then be used for drainage channels and absorption.

No matter where you may stand on sea level rising, some forecast must be used to predict future potential risks and adopt smarter building practices to minimize losses during a flood event.

Risk Evaluation

It has taken us since 1968 to get to this point and I don’t believe there is a fair solution that will fix the problem overnight.  It is likely a phased approach will be needed to implement changes gradually. 

Real estate buyers rely on FEMA’s flood maps to determine the flood risk on a property based on what “zone” it’s in. Unfortunately, FEMA’s flood maps are often inaccurate, outdated and not reflective of true flood risk. The result is that some homeowners pay too much, while others pay too little. That’s a problem and inherently not fair.

It is unfair to implement dramatic and sudden premium hikes on homeowners who bought their home before they knew the true risk.

Currently, it can take 10 years to update the maps.  As a result, it’s not unusual for homeowners in a lower-risk zone to suddenly discover they’ve been mapped into a higher-risk zone, which means higher premiums.  Sometimes much higher.

In some areas, homeowners have spent thousands to raise their property to reduce flood risk, and the potential burden on tax payers.  But, what happens when a homeowner raised the property by 2 feet only to find out the new FEMA maps require a 3 foot increase.  The homeowner’s investment is wiped away.

Outer Banks communities have been pro-active in managing the flood plains to minimize damage due to flooding.  In recognition of the effort, many residents in these communities receive a discount on the flood insurance premiums by reducing the risk.  Southern Shores for example, has a rating of class 6 in the community rating program and qualifies for a 20% discount on flood rates.

If you are buying or selling real estate, you can rely on the information and advice from the Eillu team.  Subscribe to our blog to stay up to date with Outer Banks area and real estate news.

MLS Monthly Outer Banks Market Report


Final Walk Through Checklist for Home Buyers and Home Sellers

Final Walkthrough Checklist for Home Buyers and Home Sellers

Home Buyers Checklist and Preparation before Closing

The final walk through for home buyers is the last chance to verify the condition of the property and verify that any repair work agreed upon has been completed.  The final walk through typically occurs just before closing.  Just because you are excited about closing on the property do not rush through the walk through.  Pay careful attention to the details to make sure you don’t suffer any surprises once the home is yours. 

We recommend to our buyers to bring this checklist, a note pad, and a camera or your smart phone.  You should also bring a copy of the sales contract, home inspection report and the seller’s disclosure form to carefully check off each item on the list.  You may also want to bring an electrical tester to check the outlets.  No matter how pressed for time, it is never a good idea to pass on performing the final walkthrough.  This is especially true if the house has been vacant for any amount of time or if there has been any severe weather since you last saw the home.

When you first arrive at the house, start the clothes washer, dryer and dishwasher through a cycle.  Continue with the checklist and verify the appliances completed the cycle and that there are no leaks.

 

 

Buyers Checklist Prior to Closing

 

 

 

Have all agreed upon repairs been made?

 

 

 

Have all the repairs required by the sales agreement been made?

Yes

No

 

Are all bills for repairs and applicable warranties given to you?

Yes

No

 

 

 

 

 

Notes

 

 

 

 

 

 

 

Are items purchased with the house where they are supposed to be?

 

 

 

Drapes, blinds or window treatments

Yes

No

 

Appliances (washer/dryer, refrigerator, ice maker, etc.)

Yes

No

 

Lighting

Yes

No

 

Furnishings

Yes

No

 

Hot tub or sauna

Yes

No

 

Play structures

Yes

No

 

Remote control devices for blinds, ceiling fans, alarms, garage doors

Yes

No

 

Owner’s manuals for appliances and home systems (HVAC, fireplace units, alarm systems, etc.)

Yes

No

 

Other:

Yes

No

 

 

 

 

 

Notes

 

 

 

 

 

 

 

Check window and doors

 

 

 

Do all the doors open and close properly?

Yes

No

 

Do all the windows open and close properly?

Yes

No

 

Do the windows latch/lock?

Yes

No

 

Are any windows missing screens?

Yes

No

 

Are there any missing storm windows?

Yes

No

 

Is there condensation in double-panned windows?

Yes

No

 

Are there any broken windows?

Yes

No

 

Do you have keys for all the doors?

Yes

No

 

 

 

 

 

Notes:

 

 

 

 

 

 

 

Check for mold and water damage

 

 

 

Do the windows have signs of mold or rot?

Yes

No

 

Any signs of mold or water damage under the kitchen sink?

Yes

No

 

Any signs of mold or water damage in the bathroom?

Yes

No

 

Any signs of mold or water damage around the refrigerator area?

Yes

No

 

Any signs of mold or water damage around the washer/dryer area?

Yes

No

 

Any signs of mold or water damage around the water heater?

Yes

No

 

 

 

 

 

Notes:

 

 

 

 

 

 

 

Check appliances and systems

 

 

 

Did dishwasher complete its cycle?

Yes

No

 

Does the thermostat work?

Yes

No

 

Test the A/C.  Does the system blow cool air?

Yes

No

 

Test the heat. Does it get hot?

Yes

No

 

Switch on overhead fans. Do they work?

Yes

No

 

Test the water heater. Is the water from faucets hot?

Yes

No

 

Does the doorbell work?

Yes

No

 

Does the alarm work?

Yes

No

 

Does the intercom work?

Yes

No

 

Does the garage door open and close smoothly and quietly?

Yes

No

 

Does the washer work?

Yes

No

 

Does the dryer work?

Yes

No

 

Does the stove work (check all burners and oven)?

Yes

No

 

Does the built-in microwave oven work?

Yes

No

 

Does the damper in the fireplace work?

Yes

No

 

Does the gas come on in the gas fireplace?

Yes

No

 

Does the fan work in the gas fireplace?

Yes

No

 

Does the garbage disposal work?

Yes

No

 

Do all the exhaust fans (bath and kitchen) work?

Yes

No

 

Do the smoke alarms work?

Yes

No

 

 

 

 

 

Notes:

 

 

 

 

 

 

 

Check interior floors, walls, and ceilings

 

 

 

Are there any water stains on the ceiling (especially below bathrooms)?

Yes

No

 

Have any walls been damaged by movers?

Yes

No

 

Are handrails in stairways secured?

Yes

No

 

Have floors been damaged by movers or pets?

Yes

No

 

 

 

 

 

Notes:

 

 

 

 

 

 

 

Check for leaks and plumbing problems

 

 

 

Flush all toilets. Do they run, empty slowly, or leak?

Yes

No

 

Check all faucets. Do they leak?

Yes

No

 

Fill the sinks. Do they drain properly?

Yes

No

 

Fill the tubs. Do they drain properly?

Yes

No

 

Do the overflows on the tubs work?

Yes

No

 

Do the tub jets work? (spa tubs only)?

Yes

No

 

Turn on all showers. Do they drain properly?

Yes

No

 

Look under sinks. Are there any leaks?

Yes

No

 

Check the basement. Look at the floor, walls, and any exposed plumbing. Are there signs of leaks?

Yes

No

 

 

 

 

 

Notes:

 

 

 

 

 

 

 

Check electric

 

 

 

Turn on all lights. Do they work?

Yes

No

 

Check plate covers. Are they damaged or missing?

Yes

No

 

Check the kitchen and bathroom outlets. Are there GFCI outlets next to the sinks and other water sources?

Yes

No

 

Inspect the circuit breaker box. Are all the circuits labeled?

Yes

No

 

 

 

 

 

Notes:

 

 

 

 

 

 

 

Check exterior

 

 

 

Is the landscape as you expected it? Any shrubs or trees missing?

Yes

No

 

Turn on the sprinklers. Do they work?

Yes

No

 

Check roof for missing shingles?

Yes

No

 

Is the siding in the expected condition?

Yes

No

 

Are the windows in the expected condition?

Yes

No

 

Are garbage and recycling cans on the property?

Yes

No

 

Are sidewalks and driveway in expected condition?

Yes

No

 

Does exterior lighting work?

Yes

No

 

Are downspouts clear of debris?

Yes

No

 

Is the pool and Hot Tub in working condition?

Yes

No

 

Is the outside shower and all outside faucets in working condition?

Yes

No

 

Are outside outlets GFCI protected and working?

Yes

No

 

 

 

 

 

Notes:

 

 

 

 

 

 

 

Check attic and other storage places

 

 

 

Is it empty? Are there any hazardous materials?

Yes

No

 

Do you see signs of pests?

Yes

No

 

Is the insulation compressed, torn or compromised?

Yes

No

 

 

 

 

 

Notes:

 

 

 

 

 

 

 

Check for cleanliness

 

 

 

Is the property clean overall?

Yes

No

 

Is all personal property not included in the sale removed?

Yes

No

 

Are there signs of pest infestations?

Yes

No

 

Is all debris removed?

Yes

No

 

 

 

 

 

Notes:

 

 

 

 

 

 

Home Sellers Checklist and Preparation before Closing

Many times home buyers and home sellers never get a chance to meet.  Sellers can facilitate a smooth closing by having the following checklist of items taken care of in advance of closing.  A good rule of thumb is to leave the home in the same condition you would want if you were moving in.  Leave the items out on the kitchen counter so the buyers will see it when they perform the final walk-through before closing.

 

 

Sellers Checklist Prior to Closing

 

Manuals, operating instructions and warranty: Leave manuals for appliances and mechanicals like the HVAC system on the kitchen counter for the seller to find.

 

 

 

Include security alarm codes and manuals

 

 

 

Include keys to the house and any outbuildings

 

 

 

Include remotes for garage doors, fans, blinds etc.

 

 

 

Window screens: If screens aren’t in the windows, leave a note indicating where they are.

 

 

 

Light bulbs: Replace any burned out light bulbs in the house.

 

 

 

Batteries: Verify batteries in smoke detector are still working or replace with fresh batteries.

 

 

 

Forwarding address and phone number: Even if you’ve submitted your change of address form to the post office, provide it to the buyer in case they need to forward mail to you or call you with questions.

 

 

 

Clean: Leave your home clean for the buyers and remove all trash.

 

 

 

Paint for touch-ups: It’s a thoughtful gesture to leave any paint cans marked with the rooms where the paint was used. The buyer can then do touch-ups later on if needed.

 

 

 

Service Providers:  Leave a list of service providers used at the home for the buyers to reference.

If there are any issues discovered during your final walk through, immediately contact your agent to discuss them.  Your Eillu real estate agent can advise you regarding appropriate courses of action.   Depending on the severity of the issue, several courses of action can be taken.  A minor item could be overlooked or you could seek financial compensation or repair by the seller.

If a major item or more costly item is revealed then your agent will contact the seller agent.  Closing could be postponed in order to investigate the issue or financial compensation from seller to buyer could be negotiated.  Keep in mind that the seller could refuse and you also have the option to walk away from the deal. 

Immediately communicating any problems you detect will make sure you’re appropriately compensated for any uncompleted repairs previously agreed upon or recent damage that may have occurred when the previous owners were moving out.

OBX relocation guide


August 2017 Outer Banks Real Estate Outlook and Current Statistics

August 2017 Outer Banks Real Estate Outlook and Current Statistics

The Outer Banks Association of Realtors released the August 2017 MLS Statistical Report – you can get the full report here.

Real estate sales for August 2017 in the Outer Banks dipped to 156 units, after July’s sales of 178 units. Under contract fell by 1% to 419 units compared to July’s 422 units. The average home price increased by 4% compared to 2016. Over the last 5 years the median home price has increase by 23% with most of the increase over the past two years. Some highlights from this month’s report follows.

Overall Market

Residential inventory decreased by 8% compared to last year, following last month’s 10% drop. Active inventory is 1513 units. The quantity sold increased by 11% following last month’s 13% increase; with volume sold up by 16% following last month’s 18% increase; compared to year to date sales last year.

Lots and land quantity sold increased by 8%. The average sale price for lots fell by 21% and while the median price increased by 3%. Inventory is down by 11% compared to last year.

Commercial unit sales are down by 20% following last month’s decrease of 21%. Only 16 commercial units were sold compared to 20 last year. The average and median sale prices have little relevance with such a small sample and appear skewed from a large sale last year. Commercial inventory is down 16% compared to last year with only 63 units active on the market.

Distressed Property

There were 19 residential short sale units sold, only 1 more than the 18 units sold last month. However, this is down 17% from last year when there were 23 short sales. The average sale price decreased by 11%. The median sale price increased by 7%.

Sales for bank owned properties increased from 54 units to 57 units compared to last year. Bank Owned unit sales increased by 6%. The average sale price for Bank Owned property fell by 15% compared to last year; while the median decreased by 3%.

Overall, the quantity of distressed property sold fell by 1% compared to the same period in 2016. The average price decreased by 12% and the median increased by 3%. Total volume sold is down by 17% compared to last year.

The effect distressed real estate will have on the overall Outer Banks market will continue to diminish as foreclosure and short sale inventory is depleted and the market returns to pre-recessionary levels of distressed real estate. Overall distressed sales account for only 2% of total residential sales.

Residential

Single family unit sales increased by 12% a bit lower than the 14% increase reported last month, with 1,118 units compared to last year 996 units. The volume sold increased 16% with the average sale increase by 4% and the median sale price increased by 1%.

Condos unit sales increased by 16%, following last month’s increase of 18%; compared to last year. August condo unit sales were 140 compared to 120 a year ago. The volume sold increase by 14% following last month’s 15% increase. Median sale prices for condos increased by 8% compared to last year. Average sale prices fell by 1%, compared to last year. Unlike many other markets, the Outer Banks did not see an oversupply of condo construction during the boom years and current demand for condos has been strong in 2017.

Residential land unit sales increased by 5% YOY; a sharp decrease from the 19% increase reported in July. The average sale price fell by 12% while the median increased by 1% compared to last year.

Overall Days on the Market for the all residential properties is down by 23% compared to last year at 151 versus 197. More interesting is for the 643 properties listed and sold since Jan 2017, the average DOM is only 45 days. Outer Banks properties are selling much faster; especially new inventory.

New Construction building permits are down by 23% 170 compared to 220 last years. This follows July’s decrease of 15%. Building permit value decreased by 14%.

Outer Banks Town Statistics

The August 2017 median sale prices for the towns in the Outer Banks and the percent change compared to 2016 appear below:

Aug 2017 Median Price changes in OBX towns from 2016

Aug 2017 data table median prices in OBX town and YTD percent change

Corolla experienced the largest percentage gain of 12% compared to 2016. The next highest YTD increase was Hatteras Island at 7%; this is unchanged from June and July.

The Outer Banks real estate market is on track for a solid sales year. OBXMLS reports 419 units are listed as under contract at the end of August. September is a great time to visit the Outer Banks and view real estate as the crowds have reduced and the weather is the best!

If you have been thinking about an Outer Banks vacation home purchase, second home purchase or permanent home, now is the time to act. Purchasing power will decrease once the anticipated mortgage rates increase. Smart buyers and investors will lock in rates now before the increase.

Buy with Eillu and save more with our buyers rewards plan.

If you have considered selling your Outer Banks home, now may be the best time. The lower inventory levels will allow your property to be seen with less competition. The strong demand will sell your home with fewer days on the market. Our 1.5% listing commission will save you thousands of dollars!

The rental market continues to be strong to provide income from the investment and enjoyment for the family for years to come.

The Outer Banks continues to be named a top beach destination every year. Beach nourishment has recently been completed for a large portion of Dare County beaches and will ensure strong future appreciation for real estate.

Schedule an appointment today to find your vacation rental property, second home or investment property.

Eillu listing commission 1.5% Eillu buyers rewards CTA


Selling Your Home? Compare Eillu’s Marketing Checklist and Get More Value for Your Dollar

marketing checklist to sell your home

If you have considered selling your Outer Banks home, vacation rental or investment property then you should be aware of some types of marketing real estate agents use to sell your home.  Most everyone is aware of the MLS (Multiple Listing Service) that most agents use. 

In today’s internet environment, you need marketing that will stand out and get noticed in order to get results.

At Eillu, we have invested in technology to improve efficiencies.  We have a dedicated marketing team who executes a marketing plan just for your listing. This allows our agents to focus on clients.

We provide more marketing services to get your home sold for the highest price in the shortest time.  We know it doesn’t take twice as much time and expense to sell a million dollar property compared to a half million.  For this reason, we have lowered our listing commission to 1.5% (for listing over $300k) and capped them at $15k.

Compare Eillu’s marketing checklist to any other Outer Banks real estate agency to see where you will get the most value for your dollar and keep more of the profits from the sale of your real estate.  Preview our listing presentation for more details.

Eillu’s marketing checklist and full service benefits for our listings:

  • Comparative Market Analysis with Listing Price Strategy
  • Measurements & Notes of Property Features
  • Professional High Resolution Photos
  • Aerial Drone Video – with steady cam tour of inside.
  • MLS Listing
  • Listing on Syndicated Realty Sites
  • Coordinate Showings
  • “for sale” Sign
  • Lockbox
  • Blog post written specifically for your property with community highlights or links.
  • Create internet ads, brochures, email marketing for your listing, and social media posts highlighting your home and its features
  • Host Open Houses
  • Dedicated Web Page for your home on Eillu website with high quality photos
  • “Featured” listing on Eillu home page
  • Zillow 5 Star Premier Agent
  • Follow-up After Showings and Communicate Feedback
  • Review Offers in Detail & Negotiate
  • Follow-up with loan processing, inspections, escrow agents and all other closing process related items
  • Attend Home Inspection
  • Communication to Seller every step of the process
  • Secure document storage, signature and retrieval
  • Attend and Represent at Closing
  • Broker with over 20 years’ experience in OBX market—over $1 Billion in Real Estate sold under his management

Schedule an appointment today to review in detail how Eillu can sell YOUR real estate.  We will prepare a custom market analysis so you know what to expect and how your home compares to properties that are for sale and have recently sold. 

Eillu free custom market analysis


Selling Your Outer Banks Home? Be Prepared for How Much it Costs

cost to sell OBX home

When it comes time to sell your home, many owners only imagine the dollars lining their pocket.  While Outer Banks home sales have had a good year so far, it pays to be prepared for how much it may cost and set your expectations from the beginning.

Agent Fees

Traditionally, the seller pays the agent fees.  There are two sides to this coin, the listing agent and the buyer’s agent.  The going rate in the Outer Banks is typically 6%; split between the buyer’s agent and selling agent.  The average Outer Banks home is around $400k and agent’s commission could total $24,000!

At Eillu, we have a lower listing fee at 1.5% and have capped this at $15,000 for properties where the sale price is $300,000 or more.  Sellers should keep a 3% commission for the buyer’s agent to maintain your listings appeal when compared to other listings and to encourage buyer’s agents to share your listing with their buyers.  Listing with Eillu will still save you significant money.  Take the average Outer Banks home at $400k; $6,000 would be the listing agent commission (at 1.5%) plus $12,000 to the buyer’s agent.  This commission structure saves the seller $6,000.

Many times the buyer’s agent and listing agent represent different firms and have to share a portion of the commission they earn with the Brokerage Agency to cover overhead and other costs. 

Most agents do not receive a salary.  The listing agent pays upfront for all the costs to market your home.  Everything from the monthly MLS fees (multiple listing service), for sale signs, professional photographs and drone videos are paid upfront by the listing agent.  If your home does not sell then the agent is not reimbursed for his out of pocket expenses.  At Eillu, we provide additional marketing and services that some higher commission agencies do not provide. 

Closing Costs

Typically, home buyers pay more than sellers in closing costs. However, that doesn’t mean that sellers don’t pay any closing costs.  Plus, in a buyers’ market, a buyer may negotiate with the seller to pay a portion of the buyers closing costs in order to seal the deal. 

Sellers closing cost include transfer taxes.  In Dare and Currituck County the transfer tax is $1 per $100 in sale price or $4,000 for the $400k home.  Sellers should also expect to pay prorated water bills, prorated property taxes, prorated amount of HOA (home owner association fees) due, any special assessments for HOA, any outstanding invoices for repairs,  current mortgage payoff, payoff of any liens against the property, document fee for deed and lien waiver, and attorney fees.

Benefits of an Agent

Many home owners attempt to sell their home as a FSBO (For Sale by Owner) when it is a sellers’ market and believe they will save money.  The reality is actually quite different.  According to the National Association of Realtors 2016 profile the average FSBO sale prices was $185k while a home represented by an agent was $245k.  The $60,000 difference more than offsets all agent commissions. 

The listing agent does so much more than getting you more dollars from your sale.  From properly pricing your home, marketing, scheduling appointments, hosting open houses, negotiating offers and more, your agent will save you time.  The agents’ knowledge and experience will prove invaluable should any hiccup occur during the selling process or negotiation.   Your listing agent has the correct disclosure forms and process in place to make sure you comply with all legal requirements.

If you do go the FSBO route, you will have to pay the fees to list on the MLS, hire a professional photographer and drone videographer, pay for “for sale” signs, pay to list on FSBO or other websites.  You will need to prepare the marketing materials, brochures, website listing and social media postings to market your home.  Most people do not have the skills or the time to perform all the activities and tasks required to properly market their home.  A FSBO seller can’t match the reach that agents obtain through IDX (Internet Data Exchange) and syndication of listings; Eillu’s listings reach over 700 sites.

Pre-Market Expenses

Very few of us live in glass houses that are in mint condition and ready to show.  Taking the time and money to complete any small repairs will be rewarded with a quicker and higher dollar sale.  The loose door knob for a room you seldom enter may not bother you but will sure to be noted by a potential buyer or inspector. These small items can turn buyers off and may make them assume your home has not been well maintained.  Critically examine your home for any small items that need to be addressed.  Make sure any landscaping items, like removing dead trees and keeping the grass cut are also taken care of. 

Some sellers go an extra step and employ an inspector to make suggestions of any repairs that are needed.  Sellers can make the repairs and make the report available to buyers once the home is on the market.  An inspection report provided by the seller can boost buyers confidence in the condition of your home.

Your home should be spotlessly clean, polished, staged and ready before the first buyer ever walks through the door.  Most of us do not lead minimalist lives and have accumulated a lot of stuff.  While the stuff may be important to you and inspire fond memories, it will be distracting to buyers.  Family photos, travel mementos, collections and knick knacks should be removed.  Many sellers also have too much furniture as well.  For this reason, pack it up and store it offsite.  Alternatively, you can also donate or have a garage sale to dispose of unwanted items or items not needed in your next home.  This will make moving much easier.  You want to make it as easy as possible for the buyer to see the features of your home and allow them to imagine their belongings residing there.  Your listing agent can advise you with ideas to properly stage your home or you can consult with a stager or interior decorator. 

Occupied or Vacant

If you are not living in the home or it is a vacation rental, you must keep all the utilities (gas, water, electric) on to show the home and facilitate inspections.  Many vacation homes are sold with furnishings and have fewer personal mementos.  Remove any items that are not included with the sale prior to putting it on the market.  If you have already moved from the home and it is vacant but it was your primary residence, check with your insurance agent to see if you require additional coverage.

Taxes

Most of the sellers’ costs are deducted from the gains from the sale at closing.  However, if your gain from the sale is more than $250k (single) or $500k (married filing jointly) then you may need to pay capital gain taxes on the sale.  You can read more about it in our post: Don’t Let Real Estate Capital Gains Take Your Profit.  Consult with your accountant regarding your particular circumstances.  Taxes are paid the year following the sale of the real estate.

The Eillu team has decades of experience selling real estate on the Outer Banks and have insight to structure 1031 exchanges and more complicated deals.  Schedule an appointment today to learn how to maximize the profit on the sale of your home with our low real estate listing commission.

Eillu listing commission 1.5%


July 2017 Outer Banks Real Estate Market Report and MLS Statistics – Home Prices Up While Units Sold Fell

July 2017 Outer Banks Real Estate Market Report and MLS Statistics

The Outer Banks Association of Realtors released the July 2017 MLS Statistical Report – you can get the full report here.

Real estate sales for July 2017 in the Outer Banks dipped to 178 units but under contract increased by 3% or 422 units which, if these close, should make for a strong August. The average home price increased by 4% and the median home price is up by 3% compared to 2016. Some highlights from this month’s report follows.

Overall Market

Residential inventory decreased by 10% compared to last year, following last month’s 13% drop. Active inventory is 1513 units. The quantity sold increased by 13% following last month’s 17% increase; with volume sold up by 18% following last month’s 20% increase; compared to year to date sales last year.

Lots and land quantity sold increased by 7%. The average sale price for lots fell by 22% and while the median price increased by 4%. Inventory is down by 13% compared to last year.

Commercial unit sales are down by 21% following last month’s decrease of 21%. Only 15 commercial units were sold compared to 19 last year. The average and median sale prices have little relevance with such a small sample and appear skewed from a large sale last year. Commercial inventory is down 22% compared to last year with only 65 units active on the market.

Residential

Single family unit sales increased by 14% down from 19% increase reported last month, with 995 units compared to last year 869 units. The volume sold increased 18% with the average sale increase by 3% and the median sale price decreased by 1%.

Condos unit sales increased by 18%, following last month’s increase of 23%; compared to last year. July condo unit sales were 117 compared to 99 a year ago. The volume sold increased by 15% following last month’s 26% increase. Median sale prices for condos showed no change compared to last year. Average sale prices fell by 3%, compared to last year.

Residential land unit sales increased by 19% up from 3% reported in June. The average sale price fell by 10% while the median increased by 3% compared to last year.

Overall Days on the Market for the all properties fell by 46% in July to 121 days and fell by 24% in June compared to last year. Outer Banks properties are selling much faster.

New Construction building permits are down by 15%, with 135 units in July 2017 compared to 159 last year. Building permit value increased by 3.44%.

Distressed Property

There were 18 residential short sale units sold, the same as reported last month. Down 14% from last year. The average sale price decreased by 12%. The median sale price increased by 7%.

Sales for bank owned properties increased from 47 units to 53 units compared to last year. Bank Owned unit sales increased by 13%. The average sale price for Bank Owned property fell by 13% compared to last year; while the median increased by 4%.

Overall, the quantity of distressed property sold increased by 4% compared to the same period in 2016. The average price decreased by 12% and the median increased by 6%.

The effect distressed real estate will have on the overall Outer Banks market will continue to diminish as foreclosure and short sale inventory is depleted and the market returns to pre-recessionary levels of distressed real estate. Overall distressed sales account for only 5% of total residential sales.

Outer Banks Town Statistics

The July 2017 median sale prices for the towns in the Outer Banks and the percent change compared to 2016 appear below:

July Median Price Changes For Outer Banks Towns 2016 to 2017

July table median price changes for Outer Banks Towns 2016 to 2017

Corolla experienced the largest percentage gain of 13% compared to 2016 the same increase was reported for June. The next highest YTD increase was Hatteras Island at 7%; this also is unchanged from June.

The Outer Banks real estate market has slowed a bit in July after activity from January to June has been very robust. OBXMLS reports 422 units are listed as under contract at the end of July; which is a 3% increase compared to last year and the highest July total since July 2013.

If you have been thinking about an Outer Banks vacation home purchase, second home purchase or permanent home, now is the time to act. Purchasing power will decrease once the anticipated mortgage rates increase. Smart buyers and investors will lock in rates now before the increase.

Buy with Eillu and save more with our buyers rewards plan.

If you have considered selling your Outer Banks home, now may be the best time. The lower inventory levels will allow your property to be seen with less competition. The strong demand will sell your home with fewer days on the market. Our 1.5% listing commission will save you thousands of dollars!

The rental market continues to be strong to provide income from the investment and enjoyment for the family for years to come.

The Outer Banks continues to be named a top beach destination every year. Beach nourishment for a large portion of Dare County beaches will ensure strong future appreciation.

Schedule an appointment today to find your vacation rental property, second home or investment property.

Eillu listing commission 1.5% Eillu buyers rewards CTA


Outer Banks Single Family Real Estate Sales Increased by 19%; Condos 23%- Compared to Last Year

June 2017 Real Estate Sales Increased by 19%; Condos 23%- Compared to Last Year

The Outer Banks Association of Realtors released the June 2017 MLS Statistical Report – you can get the full report here

Real estate sales for June 2017 in the Outer Banks continued the strong performance experienced since February with the highest monthly number of units (1006) sold since October 2005.  July numbers are expected to remain strong with 410 units still listed under contract.  Some highlights from this month’s report follows. 

Overall Market

Residential inventory decreased by 13% compared to last year, following last month’s 11% drop.  Active inventory is 1526 units.  The average sale price and median price increased by 3%.  The quantity sold increased by 17% following last month’s 18% increase; with volume sold up by 20% following last month’s 23% increase; compared to last year.

Lots and land quantity sold increased by 8%.  The average sale price for lots increased by 2% and the median price increased by 7%. Inventory is down by 16% compared to last year. Last month’s lot and land inventory was down 14% compared to last year.

Commercial unit sales are down by 21% following last month’s decrease of 7%. Only 15 commercial units were sold compared to 19 last year.  The average and median sale prices have little relevance with such a small sample and appear skewed from a large sale last year.  Commercial inventory is down 15% compared to last year with only 63 units active on the market.

Residential

Single family unit sales increased by 19% the same gain as reported last month, with 875 units compared to last year 734 units.  The volume sold increased 21% with the average sale increase by 2% and the median sale price decreased by 2%. 

Condos unit sales increased by 23%, following last month’s increase of 36%; compared to last year.  June condo unit sales were 100 compared to 81 a year ago.  The volume sold increase by 26% following last month’s 41% increase.  Median sale prices for condos are up 12% for June, same increase reported last month.  Average sale prices are up 2%, same as last month.  

Residential land unit sales increased by 3% in June, following a 6% reduction reported in May.  The average sale price remained the same as last year with the median prices up by 2%.

Overall Days on the Market for the all properties fell by 24% compared to last year. 

New Construction building permits are down by 7%, with 112 units in June 2017 compared to 121 units in June 2016.   Building permit value is down by 3%.

Distressed Property

There were 18 residential short sale units sold, which is no change from last year.  The average sale price decreased by 11%.  The median sale price increased by 6%. 

Sales for bank owned properties increased from 41 units to 46 units compared to last year. Bank Owned unit sales increased by 12%.  The average sale price for Bank Owned property fell by 13% compared to last year; while the median saw no change. 

Overall, the quantity of distressed property sold increased by 8% compared to the same period in 2016.  The average price decreased by 12% and the median increased by 4%. 

The effect distressed real estate will have on the overall Outer Banks market will continue to diminish as foreclosure and short sale inventory is depleted and the market returns to pre-recessionary levels of distressed real estate.

Outer Banks Town Statistics

The June 2017 median sale prices for the towns in the Outer Banks and the percent change compared to 2016 appear below:

June 2017 Outer Banks Towns Median Sale Price

June 2017 Outer Banks Towns Median Sale Price Table

Corolla experienced the largest percentage gain of 13% compared to 2016.  The next highest YTD increase was Hatteras Island at 7%. 

The Outer Banks real estate market has heated up.  Activity from January to June has been very robust with no signs of slowing down.  OBXMLS reports 410 units are listed as under contract compared to 461 units shown as under contract in May suggesting July sales will also be strong.  This reflects a normal seasonal adjustment from 473 units under contract reported in April.

If you have been thinking about a vacation home purchase, second home purchase or permanent home, now is the time to act.  Purchasing power will decrease once the anticipated mortgage rates increase.  Smart buyers and investors will lock in rates now before the increase.  

Buy with Eillu and save more with our buyers rewards plan.

If you have considered selling your Outer Banks home, now may be the best time.  The lower inventory levels will allow your property to be seen with less competition.  The strong demand will sell your home with fewer days on the market.  Our 1.5% listing commission will save you thousands of dollars!

The rental market continues to be strong to provide income from the investment and enjoyment for the family for years to come.

The Outer Banks continues to be named a top beach destination every year.  Beach nourishment for a large portion of Dare County beaches will ensure strong future appreciation. 

Schedule an appointment today to find your vacation rental property, second home or investment property. 

Eillu listing commission 1.5%              Eillu buyers rewards CTA


Yes, You Can Expect More With Eillu!