July 2017 OBX Market Update

Here are the highlights:

  • Total Sales: Total June sales – 279 Units – the highest monthly number of units sold since October 2005. Total Volume Sold – $427,942,964.
  • Under-contract: Units listed as under contract declined by 11% due to the record number of closings in June and the normal seasonal decline; however, with 410 units still listed under contract, the July sales figures should be noteworthy.
  • New Construction: As of May 2017, the number of new construction building permits were down 7% from 2016 (112 units vs 121 units). Building permit value was down by 3%. Quite a change from last month.
  • Days on the Market: For all residential properties listed in the MLS, the average Days on the Market was up slightly (3%) but down by 24% when compared with June 2016.
  • How Sold: In our market, 66% of all loans are conventional loans, 20% are cash, 6% are VA, 4% are FHA, 3% are Jumbo. USDAA and Other account for the remaining loans.
  • Distressed Sales: Distressed sales declined by 2% in June and accounted for just 5% of the total.
  • Inventories: Residential inventory was down by 13% in June. Lots / Land inventory was down by 16% in June.

*This information is reprinted with permission from the Outer Banks Association of REALTORS

Let’s break it down by area and price range: (Data through July 15)

Corolla

$200,000 – $400,000                               $401,000 – $600,000

46 for sale                                                      81 for sale

49 sold YTD                                                   51 sold YTD

7.5 buyers each month                                8 buyers each month

6 months of inventory                                 10 months of inventory

8 U/C currently                                             16 U/C currently

128 Days on Market                                     198 Days on Market

 

$601,000 – $800,000                               $801,000 – $1,000,000

53 for sale                                                      27 for sale

20 sold YTD                                                   7 sold YTD

3 buyers each month                                   1 buyer each month

18 months of inventory                               27 months of inventory

5 U/C currently                                             3 U/C currently

92 Days on Market                                       137 Days on Market

 

$1,000,000 – up

66 for sale

16 sold YTD

2 buyers each month

33 months of inventory

4 U/C Currently

102 Days on Market

 

Duck

$200,000 – $400,000                               $401,000 – $600,000

9 for sale                                                        33 for sale

9 sold YTD                                                     26 sold YTD

1.3 buyers per month                                   4 buyers per month

7 months of inventory                                  8.25 months of inventory

2 U/C currently                                             6 U/C Currently

133 Days on Market                                     120 Days on Market

 

$601,000 – $800,000                               $801,000 – $1,000,000

23 for sale                                                      20 for sale

9 sold YTD                                                     9 sold

1.3 buyer each month                                  1.3 buyers each month

17 months of inventory                               15 months of inventory

4 U/C Currently                                            2 U/C currently

81 Days on Market                                       149 Days on Market

 

$1,000,000 – up

27 for sale

7 sold YTD

1 buyers per month

27 months of inventory

2 U/C currently

186 Days on Market

 

Southern Shores

$200,000 – $400,000                              $401,000 – $600,000

15 for sale                                                      29 for sale

21 sold YTD                                                   18 sold YTD

3 buyers each month                                   2.7 buyers each month

5 months of inventory                                 11 months of inventory

4 U/C currently                                             4 U/C currently

72 Days on Market                                       94 Days on Market

 

$601,000 – $800,000                                $801,000 – $1,000,000

12 Active                                                        8 Active

4 sold YTD                                                     2 sold YTD

.6 buyers each month                                 .3 buyers each month

20 months of inventory                              26 months of inventory

1 U/C currently                                             1 U/C currently

259 Days on Market                                     74 Days on Market

 

$1,000,000 – up

12 Active

1 sold YTD

2 U/C currently

361 Days on Market

 

 

June 2017 Market Update

The trend of big activity is continuing for our market.  Recent news of the Fed raising the Prime Rate to 4.25% could cause our summer market to be busier than normal as people make the decision to buy before the long term rates are affected, possibly going up as high as 6%, according to history.

 

Here are the highlights:

  • Total Sales: Total sales (245 Units) for May are at their highest level since January 2005. Additionally, the total volume sold is at its highest level since 2005 (>$80 million).
  • Under-contract – Units listed as under contract declined by 3% due to the record number of unit sales in May and the normal seasonal decline; however, with 461 units currently listed as being under contract, June sales should also be impressive.
  • New Construction: As of April 2017, the number of new construction building permits were down 32% compared to last year and total building permit value was down 47%.
  • Days on the Market: For all residential properties listed in the MLS, the average Days on the Market has dropped dramatically to 135 days; however, when looking at just properties listed in the MLS since January (1488 units) the average Days on the Market calculation drops to 57.
  • How Sold: In our market, 58% of all sales use conventional loans, 22% are cash, 8% are VA, 5% are FHA, 3% are jumbo. USDAA and Other account for the remaining loans (4%).
  • Distressed Sales: After experiencing a steady decline for years, Bank Owned property sales were up 18% in May. Short sales continue their downward decline and are down by 7%.
  • Inventories: Housing inventory was down by 8% in May.

*This information is reprinted with permission from the Outer Banks Association of REALTORS

Let’s break it down by area and price range:

Corolla                                                            

$200,000 – $400,000                                   $401,000 – $600,000

51 for sale                                                         93 for sale

43 sold YTD                                                     43 sold YTD

8 buyers each month                                      8 buyers each month

6 months of inventory                                   11.6 months of inventory

9 U/C currently                                               7 U/C currently

114 Days on Market                                        144 Days on Market

 

$601,000 – $800,000                                   $801,000 – $1,000,000

54 for sale                                                         27 for sale

14 sold YTD                                                      6 sold YTD

2.5 buyers each month                                   1 buyers each month

21.6 months of inventory                               27 months of inventory

9 U/C currently                                               3 U/C currently

114 Days on Market                                        134 Days on Market

 

$1,000,000 – up

71 for sale

15 sold YTD

2.7 buyers each month

26 months of inventory

2 U/C Currently

161 Days on Market

 

Duck

$200,000 – $400,000                                   $401,000 – $600,000

10 for sale                                                         34 for sale

9 sold YTD                                                       23 sold YTD

1.5 buyers per month                                     4 buyers per month

6.6 months of inventory                                 8.5 months of inventory

1 U/C currently                                                 4 U/C Currently

125 Days on Market                                        94 Days on Market

 

$601,000 – $800,000                                   $801,000 – $1,000,000

27 for sale                                                         21 for sale

9 sold YTD                                                       8 sold

1.6 buyer each month                                     1.5 buyers each month

17 months of inventory                                  14 months of inventory

4 U/C Currently                                               1 U/C currently

81 Days on Market                                          139 Days on Market

 

$1,000,000 – up

31 for sale

6 sold YTD

1 buyers per month

31 months of inventory

2 U/C currently

186 Days on Market

 

Southern Shores

$200,000 – $400,000                                  $401,000 – $600,000

11 for sale                                                         31 for sale

14 sold YTD                                                     15 sold YTD

2.5 buyers each month                                   2.7 buyers each month

4 months of inventory                                   11 months of inventory

10 U/C currently                                             9 U/C currently

73 Days on Market                                          94 Days on Market

 

$601,000 – $800,000                                   $801,000 – $1,000,000

10 Active                                                            8 Active

3 sold YTD                                                         2 sold YTD

.5 buyers each month                                     .36 buyers each month

20 months of inventory                                  22 months of inventory

3 U/C currently                                                0 U/C currently

243 Days on Market                                        169 Days on Market

 

$1,000,000 – up

13 Active

1 sold YTD

0 U/C currently

547 Days on Market

May 2017 Outer Banks Market Update

The following is a summary of the Outer Banks market as a whole, reported by the Outer Banks Association of REALTORS and reprinted with permission.

  • Total Existing-Home Sales: Existing home unit sales are up 19% compared to 2016.
  • Under-contract – With 473 units in an under-contract status, sales in May should rise dramatically.
  • New Construction: New Construction building permits are down 31% compared to last year and total building permit value is down 20%.
  • Days on the Market: For all residential properties listed in the MLS, the average Days on the Market was 162 days; however, when looking at only the residential properties listed on the MLS since January 1, 2017 (1157 units), the average days on the market was 50 days.
  • All-cash Sales: Nationally, 23% of all home sales are for cash. Locally, we are also selling at the national average.
  • Distressed Sales: Bank Owned properties and short sales made up 7% of all residential property sales in in April. So far, this year, short sales are down by 25% and bank owned sales are up 19%.
  • Inventories: Housing inventory was down by 15% in April.

What are the clear bright spots in this report?  Inventory is down, which is desperately needed.  And, those sellers willing to price the home in today’s market are rewarded with a fast sale.

Remember, most buyers will spend 12 to 18 months looking around before purchasing a second home.  So they know what a good value is.  When it hits the market, they are ready to move!  They are also ready to pay close to the asking price.

So what does this mean for your home’s value?  The areas of Corolla and Duck are still quite a mess.  Southern Shores is doing somewhat better.

The data below that indicates for each price range the following:

  • How many homes are for sale in that range
  • How many have sold this year
  • Divided by 5.5 months = how many buyers are available in that range each month
  • Divided by the number for sale = the months of remaining inventory for that price range
  • How many homes are under contract, scheduled to close
  • The median days on market for homes sold in that price range

Corolla                                                            

$200,000 – $400,000                                       $401,000 – $600,000

41 for sale                                                              81 for sale

30 sold YTD                                                          28 sold YTD

5.5 buyers each month                                        5 buyers each month

7.5 months of inventory                                      16 months of inventory

10 U/C currently                                                   19 U/C currently

234 Days on Market                                             229 Days on Market

 

$601,000 – $800,000                                       $801,000 – $1,000,000

60 for sale                                                             29 for sale

10 sold YTD                                                           4 sold YTD

1.8 buyers each month                                        .7 buyers each month

33 months of inventory                                       41 months of inventory

8 U/C currently                                                     3 U/C currently

90 Days on Market                                               166 Days on Market

 

$1,000,000 – up

75 for sale

9 sold YTD

1.6 buyers each month

47 months of inventory

8 U/C Currently

113 Days on Market

 

Duck

$200,000 – $400,000                                       $401,000 – $600,000

8 for sale                                                               36 for sale

8 sold YTD                                                            19 sold YTD

1.5 buyers per month                                          3.5 buyers per month

5 months of inventory                                        10 months of inventory

2 U/C currently                                                    4 U/C Currently

155 Days on Market                                             109 Days on Market

 

$601,000 – $800,000                                       $801,000 – $1,000,000

30 for sale                                                             21 for sale

6 sold YTD                                                            8 sold

1 buyer each month                                             1.5 buyers each month

30 months of inventory                                      14 months of inventory

3 U/C Currently                                                    1 U/C currently

87 Days on Market                                               149 Days on Market

 

$1,000,000 – up

32 for sale

3 sold YTD

.5 buyers per month

64 months of inventory

3 U/C currently

178 Days on Market

 

Southern Shores

$200,000 – $400,000                                       $401,000 – $600,000

14 for sale                                                              32 for sale

10 sold YTD                                                          11 sold YTD

1.8 buyers each month                                        2 buyers each month

7.7 months of inventory                                      16 months of inventory

7 U/C currently                                                     5 U/C currently

105 Days on Market                                             99 Days on Market

 

$601,000 – $800,000                                       $801,000 – $1,000,000

12 Active                                                                6 Active

3 sold YTD                                                            2 sold YTD

.5 buyers each month                                         .36 buyers each month

24 months of inventory                                      16 months of inventory

1 U/C currently                                                     1 U/C currently

254 Days on Market                                            115 Days on Market

 

$1,000,000 – up

12 Active

1 sold YTD

0 U/C currently

547 Days on Market

 

April 2017 Outer Banks Market Report

There are 3 main things to pay attention in the real estate market right now.

  • We saw another rate drop today, bringing us to a new low in the last 3 months.
  • Residential home sales (actual closed deals) are up 22% over this same time last year.
  • The number of homes going under contract are also up by 22%.  The market is SUPER active right now.

The homes in the best condition with the right price are even getting multiple offers.  We are also seeing a lot of homes selling in less than a month with that same strategy.  If you’re thinking of buying or selling a home this year, contact me for a consultation.

January 2017 Outer Banks Market Report

It’s exciting to have some good news to report!  While the number of homes closed in January 2017 was identical to 2016, the number of homes going under contract is up considerably.

Closed sales for January, reflects homes that went under contract in November or December of 2016.  There were 111 sold in 2016 and 112 in 2017.   Not bad for a resort area.

However, in January this year we saw 231 properties go under contract.  The last time the number for January was this high was in 2006 at 263.   Something happened in the last 30 days to create some amazing consumer confidence.  I’m super thrilled for this year’s activity!!!

Two morals of this story:

  • If you are interested in selling your home, there’s NO REASON to wait until March or April. The market is here NOW.
  • If your home is already on the market and not selling, chances are you are priced too high. It’s difficult to accept today’s prices, no doubt.  Inventory levels are still too high to see appreciation.  It’s unclear how long it will take to recover, since we are still in the midst of the cycle.

If you’d like to find out what your home could sell for now, click here and I’ll get you a free analysis!

If you’re interested in making an investment on the Outer Banks, click here to find out what you need to know before buying in the area.

January Mid-Currituck Bridge Update

With the change of governorship in NC during the November election, it remains to be seen what the state’s position will be on the importance of this bridge project.  Governor McCrory was very committed to the project, as was his team on the DOT.  We have yet to hear what Cooper’s stance is.  With his main guy at the DOT being formerly involved with the EPA, it’s not looking good.

Meanwhile, I came across the letter from the SELC to NCDOT and Federal Highway Authority dated December 21, 2016.  You can read that letter here.  (Warning, it’s very lengthy, but has a great history and timeline of events to how we got where we are.)  In the letter, something caught my attention:

“The new expectation that traffic in the study area will be significantly lighter than previously anticipated and the Transportation Agencies’ failure to incorporate this fact into their analysis.”

Part of their argument against the building of the bridge was this new expectation of traffic.  I kept reading until I came across this info:

“New traffic forecasts, however, have shown that every single one of these predictions is no longer true. Travel demand will no longer exceed road capacity on 29 miles of the road network by 2035, or even 2040.”

I wanted to know why the SELC is reporting a new study shows the traffic patterns would be lower than originally predicted.  In my research I found that it turns out the DOT changed their traffic numbers and projections based on national trends and actual observed traffic counts.

So, basically what happened is DOT put out new numbers, and SELC pounced with another opportunity to squash the project.  While their argument is the same as it has been from the beginning, with the DOT’s own reports now showing a different projection in numbers, will the decision to build the bridge be sustained?  That coupled with new leadership has me feeling a lot of doubt that it will happen.

What are your thoughts?

Read the letter from SELC in December here. http://southernshores-nc.gov/wp-content/uploads/2016/12/December-2016-Comments-on-Mid-Currituck-Bridge-NEPA-Review.pdf

 

 

January Outer Banks Market Report

Happy New Year!  I’m really excited about what’s to come in 2017 for the real estate market on the Outer Banks.  There seems to be a burst in consumer confidence, and I hope that positive effect comes to us in full force.  We definitely need it!

We had a huge year for sales in 2012 and things have been pretty stable since then.  It doesn’t surprise me that we saw no increase in the number of sales for 2016 from 2015.  I do suspect we will have a very strong year for 2017 in terms of  number of sales:

Year:20122013201420152016
Total # Sold:20422093213922922289
Increase from Previous Year21%2%2%7%0%

 

The big question on everyone’s mind is still about price.  We have already seen the interest rates tick up a bit.  That definitely makes it a little more challenging for prices to rise.  The other issue is of course, inventory.  While our inventory levels are down quite a bit, 14% to be exact, we still have an over 12 month supply of properties for sale, in the overall market.

In a few of our specific markets, like Duck and Corolla, the inventory levels are much higher, nearly 24 months’ supply.  The number of buyers would have to triple to bring inventory to an 8 month supply.  Which is still slightly high.  With the latest bridge developments, I’m not sure why the number of buyers would go up that much.  So those areas could still be plagued with an extreme oversupply of inventory, continuing to suppress the pricing.

Meanwhile, the opportunity to buy a home at a great price, with great rental income is high!  Click here for the checklist of what to know before buying on the Outer Banks.

If you’re thinking of selling this year, let’s chat about what I can do for you!

2016 Agent of the Year

Beach Realty & Construction / Kitty Hawk Rentals

2016 Agent of the Year – Ilona Matteson

OBX Agent of the Year From left to right, Jimbo Ward, President, Ilona Matteson, 2016 Agent of the Year, and Beth Urch, Sales Manager

Ilona Matteson, associate broker for Beach Realty & Construction / Kitty Hawk Rentals, was named the company’s agent of the year for the second year in a row.  Ilona also earned agent of the year honors in 2012.   Ilona was licensed in the late 1990’s and became sales manager for Beach Realty in 2002.  In 2006, she moved to Richmond, VA and was affiliated with a national coaching company where she excelled as a one-on-one coach for real estate professionals.  The allure of the Outer Banks brought her back to the beach and she resumed her career in real estate sales.  She quickly became a top producer and attributes her success to hard work, discipline and in-depth knowledge of the local market.  Along with her successful career in real estate sales, Ilona also offers training and coaching to the sales team at Beach Realty & Construction.

You can contact Ilona at [email protected]

7 Things To Know About Buying Real Estate on the Outer Banks

Here is a list of the top 7 items I discuss with any new buyer who is looking for their vacation or investment home on the Outer Banks.

  1. Be prepared for 20% or more down. Depending on your situation, the bank may require more (like when buying a condo) because it’s not your primary residence.
  2. You can use up to 75% of the rental income the home generates in order to help qualify you for the mortgage. You will need at least a three-year history.  Keep in mind, this will mean you have to apply for an Investor loan which does carry a slightly higher interest rate.
  3. The entire Outer Banks is in a flood zone. Some areas are in flood zone X which means no insurance is required.  Most of our area will qualify for the National Flood Insurance Program, which usually runs less than $800 a year.  (Assuming Congress passes the extension this year)
  4. If you buy a foreclosure, you’ll have to re-furnish the home and buy it as-is. For some reason, the banks just haven’t figured out that the furniture in these vacation homes is valuable and needs to stay.
  5. The local county and city taxes are very low here. We generate so much revenue from the weekly guests in Occupancy Tax and in Transfer Tax on the sale of a home, that the annual taxes can stay very reasonable.
  6. Property Management fees vary based on the services you select from the Manager. It’s sort of an a-la-carte situation these days.  How much you want the Property Manager to do for you will determine the percentage you’ll pay.
  7. The Median Sales Price for a home on the Outer Banks in June 2005 was $507,000. In December 2016, it was $315,000. NOW is a GREAT time to buy your vacation home!

For more information on how to get a home of your own on the Outer Banks, call today!

Mid-Currituck Bridge Update

Reprinted with permission from the Outer Banks Association of Realtors

Mid-Currituck Bridge Update

As of last week, “October 2016”was listed on NCDOT’s Mid-Currituck Bridge web page as the month that that the Record of Decision was supposed to be released. The project timeline on the site has now been updated and states that the Record of Decision is expected Spring 2017. As noted below, the Record of Decision is typically a huge hurdle for large-scale transportation projects and is extremely significant because it closes the chapter on the environmental study process.

NCDOT Update – at ncdot.gov

Project planning and implementation of the Mid-Currituck Bridge was placed on hold in 2013 while NCDOT reviewed state, regional and local transportation improvement funding priorities using the Strategic Mobility Formula. 

The project has since been approved for inclusion in the 2016-2025 State Transportation Improvement Program (STIP), and now, work toward a Record of Decision (ROD) is underway. An amendment to the STIP calls for NCDOT to start the dedication of state transportation funding in fiscal year 2017 (which starts July 2016) that will be used for bridge construction. The STIP originally called for the dedication of funding to begin in fiscal year 2019. 

As part of working toward a Record of Decision, the Environmental Impact Statement (EIS) is being re-evaluated to determine if a supplemental EIS is required. Because it has been more than three years since the approval of the Final EIS in 2012, this re-evaluation will consider changes regarding the project, its surroundings, impacts and any new issues, circumstances or information that was not considered in the original document. The re-evaluation will also look at any changes in laws or regulations that apply to the project. 

If the re-evaluation process concludes that the information presented in the Final EIS is an accurate analysis of anticipated project impacts, the Record of Decision will be published signifying the completion of the environmental study process. 

Additional activities to take place before any construction begins include: developing a new traffic and revenue study and toll financing plan, selecting a builder, preparing final design plans, acquiring right of way, and obtaining environmental agency permits.