July Market Update

Happy 4th of July on the Outer BanksMid-year is upon us and not much has changed since the last report.  I did notice an interesting trend regarding CASH in our marketplace.  Here’s the deal.  There have been 136 home sales in Duck and Corolla since January.

Of those 136 home sales:

  • 32 Cash
  • 13 Jumbo Loans
  • 91 Conventional Loans

A conventional loan amount is $726,200.  With the typical 20% down, that means a purchase price of around $875,000.

  • Only 53 of the 136 homes sold were under $900,000
  • 83 homes sold over $900,000 up to $6,300,000
  • 13 were jumbo loans
  • 22 were cash
  • The average price is $1,251,000
  • The median sales price is $992,500

A jumbo loan amount is anything over the $726,200.  There were only 13 of those reported.  There were 48 Conventional loans in the $900,000 and up price range.  This means that 48 buyers out of 83 brought enough cash to the table to get their mortgage at or under $726,200.

To paint a clear picture – 32 cash buyers, 48 mostly cash buyers.  That’s 80 buyers (60%) who brought a ton of cash to the closing table to buy a home on the Outer Banks.  Including the highest sale of the year so far – $6,300,000 ALL CASH!!!!  This just seems amazing to me. (Here’s a link Click Here to View Listings to that home if you want to see what $6.3M gets you)

This is a clear indication that buyers have no problem parking cash in a beach home right now.  I mean, why not?  Let’s look at the 3 main reasons this could be a good idea.

  1. Rental income – If you choose to rent, the income will at the very least cover your mortgage. That means, future equity you reap, all paid by SOMEONE ELSE.
  2. Bank Failures – With banks failing across the country, and the Dodd-Frank Bill legalizing, if not mandating, “bail-ins” a lot of people don’t feel safe keeping their cash susceptible. Rather, they are investing in a tangible asset, and one they can enjoy themselves and have others pay for!
  3. Inflationary Fiat Dollar – Let’s get real, the price of real estate will NEVER go to zero. As inflation spikes even more and more out of control, the dollar is tumbling closer and closer to zero.  It seems buyers are hedging their bets on the tangible asset of real estate versus the tumbling value of the dollar.

We haven’t even begun to see the effects of the commercial real estate crisis looming.  This is widely affecting regional banks who are holding the notes on these buildings that are sitting empty in record numbers across major cities.

Don’t get me wrong, my message is not of doom and gloom.  What’s going to happen is going to happen.  My point is, what is your best move?

If you are considering selling, there are cash buyers waiting for your home.  We do have investment vehicles where you can put your money and AVOID capital gains tax in the meantime.  Contact me for more information.

If you are thinking about buying, get off the fence and don’t let the interest rates deter you.  You won’t have much competition buying right now and there are some great opportunities out there!

March 2022 Market Update

Let’s talk about INVENTORY.  Most people don’t realize that inventory level is the key determining factor for real estate prices.  If I had a dollar for every time someone asked about the bridge in relationship to values, I would have a whole lot of dollars!  And yes, there are a lot of factors that play into value.

For example:

  • Condition – buyers today don’t want to fix old problems
  • Location – location has always been top of the list
  • Rentability – Not every buyer in our market cares about this, but it does help
  • Financing – Being able to get good terms
  • Insurance – Getting the best premiums makes the home more saleable

However, inventory levels trump all other factors when determining value.  Just 3 short years ago the inventory levels in Corolla were over 2 years.  Now, it’s barely one month.  The old faithful supply and demand is king when it comes to prices going up or down.

Let’s also realize these cycles historically (nearly 100 years worth of data) last for 20 years.  The last cycle began in 2000.  So regardless of COVID, we were due for an up market.  I do believe that COVID accelerated what should have taken 3 years to get where we are into 2 years.  That being said, the last up cycle lasted for 5 or 6 years.  It’s not clear how long this one will last.  Especially with everything going on, who knows.

What we do know is that watching the stats is the same as having a crystal ball.  Nothing can change until inventory levels change.  That doesn’t look to move any time soon.  We are just beginning the spring market where our inventory usually increases by 30%.

Here’s the number of homes currently for sale and under contract for each area.

Area                For Sale           Under Contract

Corolla –           22                    86

4 Wheel –         8                      8

Duck –              13                    23

Southern Sh     10                    16

Kitty Hawk      9                      8

KDH                 12                    53

Nags Head       12                    26

These numbers still blow my mind!  We all want to know what’s going to happen.  Here’s what we can count on, what goes up, must come down.  The big question is WHEN?  My answer, watch the inventory and you’ll know.  When we get back to 4 to 6 months, that’s when it will start.

Meanwhile, if you have any questions about buying or selling in this crazy market, give me a call!

New Listing! 3104 Columbia Avenue Kill Devil Hills, NC 27948

13New Listing!!
3104 Columbia Avenue
Kill Devil Hills, NC

MLS# 87201        $240,000

This charming beach box is located in a prime area in Kill Devil Hills. The garage was converted to a work area/laundry room/game area and additional bedroom with private bathroom. Take the interior stairs up to an open great room with kitchen and dining area. Two additional bedrooms are on the south side of the top floor with a hall bath. A large master bedroom and bath with walk in closet are on the north side. The fenced in back yard makes this a great choice for buyers with dogs or small kids. Plenty of room to play. Maintenance free vinyl siding is a plus!

Contact me for more details!

 
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Great home on Corner Lot in the Heart of Kill Devil Hills!

 313 Quail Lane, Kill Devil Hills, ND313 Quail Lane,
Kill Devil Hills

MLS#81279     $229,000

Take a look at this great home on nice corner lot! A perfect 3 bedroom, 2 bath home in the heart of Kill Devil Hills. A beautiful yard in a peaceful wooded setting. Be sure to check out the detached oversized garage with a second floor! Imagine the possibilities for all this space! You’ve got to come see this home – it’s the perfect place for your family! Don’t forget about the quick walk to Nags Head Woods!

Contact me for more details

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Home with Lots of Potential in the Heart of Kill Devil Hills!

117 E Meadowlark St, Kill Devil Hills, NC 27948

117 E. Meadowlark Street
Kill Devil Hills, NC

MLS# 85408      $275,000

Excellent location in the heart of KDH!

Walk to restaurants, shopping or an easy stroll to the beach. This is a very cute home with a lot of potential. Enjoy the wrap around decks on the entire house, the ground floor patio area or the rooftop deck for best views. The top floor features an open concept kitchen/dining/living area, a full bathroom and 3 bedrooms. Take the spiral staircase downstairs to the HUGE game room with additional seating/sleeping and another full bathroom. Private entrance and garage complete the ground floor space. Perfect for year round living/second home or investment. Most of the homes on the street are either full time residents or second home owners. Great spot at a great price!

Contact me for more details

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Excellent Kill Devil Hills Location at a Great Price!!

117 E Meadowlark St, Kill Devil Hills, NC 27948

117 E. Meadowlark Street
Kill Devil Hills, NC

MLS# 85408      $275,000

Excellent location in the heart of KDH!

Walk to restaurants, shopping or an easy stroll to the beach. This is a very cute home with a lot of potential. Enjoy the wrap around decks on the entire house, the ground floor patio area or the rooftop deck for best views. The top floor features an open concept kitchen/dining/living area, a full bathroom and 3 bedrooms. Take the spiral staircase downstairs to the HUGE game room with additional seating/sleeping and another full bathroom. Private entrance and garage complete the ground floor space. Perfect for year round living/second home or investment. Most of the homes on the street are either full time residents or second home owners. Great spot at a great price!

Contact me for more details

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New Price!! Great 3 Bedroom Kill Devil Hills Home on Corner Lot!

 11-3-14 313 Quail Lane new price posting313 Quail Lane,
Kill Devil Hills

MLS#81279     $229,000

Take a look at this great home on nice corner lot! A perfect 3 bedroom, 2 bath home in the heart of Kill Devil Hills. A beautiful yard in a peaceful wooded setting. Be sure to check out the detached oversized garage with a second floor! Imagine the possibilities for all this space! You’ve got to come see this home – it’s the perfect place for your family! Don’t forget about the quick walk to Nags Head Woods!

Contact me for more details

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New Listing! 117 E. Meadowlark Street Kill Devil Hills NC, 27948

117 E Meadowlark St, Kill Devil Hills, NC 27948  New Listing!!

MLS# 85408      $275,000

Excellent location in the heart of KDH!

Walk to restaurants, shopping or an easy stroll to the beach. This is a very cute home with a lot of potential. Enjoy the wrap around decks on the entire house, the ground floor patio area or the rooftop deck for best views. The top floor features an open concept kitchen/dining/living area, a full bathroom and 3 bedrooms. Take the spiral staircase downstairs to the HUGE game room with additional seating/sleeping and another full bathroom. Private entrance and garage complete the ground floor space. Perfect for year round living/second home or investment. Most of the homes on the street are either full time residents or second home owners. Great spot at a great price!

Contact me for more details

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Corner Lot in the Heart of Kill Devil Hills!

OBARMLS81279A

313 Quail Lane, Kill Devil Hills
MLS#81279 $229,000

Take a look at this great home on nice corner lot! A perfect 3 bedroom, 2 bath home in the heart of Kill Devil Hills. A beautiful yard in a peaceful wooded setting. Be sure to check out the detached oversized garage with a second floor! Imagine the possibilities for all this space! You’ve got to come see this home – it’s the perfect place for your family! Don’t forget about the quick walk to Nags Head Woods!

Contact me for more details

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New Price! Kill Devil Home with Many Possibilities!!

803 W Airstrip Road Kill Devil Hills NC 27948

803 W. Airstrip Road
Kill Devil Hills
MLS# 84842          NOW $215,000!!!

The ground floor offers a full bath, bedroom and living room with a kitchenette and laundry area. Perfect for an older child living at home or a mother in law suite. Convert the living room into a game room and office, the possibilities are numerous. Upstairs enjoy a nice open kitchen, dining and living area. Three full bedrooms one with a master bath and two full closets as well as a hall bath and two additional decent sized bedrooms. There’s ample decking on the top floor. Also enjoy a nice quiet street, wooded lot and plenty of paved parking.

Contact me for more details

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