March 2022 Market Update

March 3, 2022 By Ilona

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!

Filed Under: Home Buyers' Tips & Advice, Home Sellers' Tips & Advice, OBX Real Estate News & Data, Outer Banks Good Living Tagged With: , , , , , ,

Hurricane Names for 2021 Season and Preparedness Checklist

June 1, 2021 By Ilona

Outer Banks Hurricane names 2021

Hurricane Preparedness

Filed Under: Home Buyers' Tips & Advice, Home Sellers' Tips & Advice, OBX Real Estate News & Data, Outer Banks Good Living, Properties Tagged With: , , , ,

May OBX Update

May 11, 2021 By Ilona
Let the May flowers bloom! 
We are gearing up for a super busy vacation season so far.  Keep in mind most of the Outer Banks is short-staffed and one of the big culprits is actually the housing crisis.  There is a huge lack of affordable houses available for year-round residents and that is creating a big crunch for the job market.  So if you’re visiting this year, be mindful everyone will be doing the best they can with the staff they have.

We love having you here!  

I’ve got 3 updates to share this month:

Mid-Currituck Bridge –  Well, no big surprise.  More delays.  Click HERE to read the article.
Summertime Selling? – While most people don’t think of selling mid-vacation season, there are actually some real advantages to it.  If you want to take advantage of the current market activity, there’s no reason to wait.  See the 5 reasons here.
Busy Vacation Season – I have some unofficial reports that off-season (shoulder week) bookings are up 68% for the Outer Banks.  Of course in season is fully booked across the board.  There was a very funny meme out recently that I thought worth sharing:
X
Filed Under: Home Buyers' Tips & Advice, Home Sellers' Tips & Advice, OBX Real Estate News & Data, Outer Banks Good Living Tagged With: , , , , ,

April Newsletter

April 5, 2021 By Ilona

Happy April!  I hope you had a wonderful Easter weekend.  Beautiful weather has finally arrived at the beach.

I have a few interesting topics this month.

Insurance – While prices are rising, so could insurance costs.  There are some pretty significant changes that you need to be aware of if you are buying or selling.  First and foremost, make sure your insurance coverage is sufficient.  Lumber costs have gone up 112% since last year.  Make sure you check in with your agent to be sure you are covered.
For the rest of the changes, click here to read the full article.
Top 5 Destinations – If you thought last summer was busy, just wait.  You’ve probably seen this graphic floating around on Facebook…here’s the full article if you’re interested.  Be prepared for a wild season, and if you haven’t booked already, you may be out of luck.  Go ahead and book for next year too, just in case.
Market Report – Not much has changed in terms of activity.  The market is still very active!  For a breakdown of inventory/activity per town click here.
Filed Under: Home Buyers' Tips & Advice, Home Sellers' Tips & Advice, OBX Real Estate News & Data Tagged With: , ,

Insurance Changes for Outer Banks Rentals

April 5, 2021 By Ilona

As part of my continued effort to provide you with the most relevant information, I wanted to reach out with some important updates regarding insurance for your Outer Banks investment.  These changes primarily involve Frontline Insurance, which is considered one of the most affordable companies available.

If you are considering selling or buying, be mindful of the following:

  1. Frontline Insurance will not write a home policy if the hot water heater is more than 15 years old.
  2. They will allow a maximum of 26 weeks rented.  With our extended renting season these days, this could really become an issue. Frontline is strict with the maximum of 26 weeks of rental. Renting for more than 26 weeks could seriously affect a claim.
  3. Effective this year Frontline will no longer write any policies in Dare County on homes older than 1/1/2005.  This leaves the only wind insurance option to NCIUA.
  4. If your home has polybutylene pipes, only a dwelling policy can be issued and no coverage exists on any issues with those pipes.  Replacement of the fittings is no longer a suitable fix. The dwelling policy is more expensive and doesn’t offer as good coverage.  Replacement of the fittings is no longer a suitable fix. Insurance agents recommend avoiding homes with Poly Plumbing – or – have the owners re-plumb the home prior to purchase.

This information is just to create more awareness.  I have some good local contacts if you have further questions, just let me know.

Filed Under: Home Buyers' Tips & Advice, Home Sellers' Tips & Advice, OBX Real Estate News & Data Tagged With:

February OBX Market Update

February 24, 2021 By Ilona

It’s almost Spring!

While the weather here is warming up, nothing is as hot as the real estate market.  In fact, 2005 called and said it wants to reminisce!
Market Update – Interest rates did tick up a bit (still holding at around 3%), but that doesn’t seem like it will slow down the activity right away.  We have 44% of our inventory under contract.  If you list it, it will sell.  If you are thinking about putting your home up for sale, here’s a checklist of readiness to look at to get prepared.
Vendor List – Normally this time of year I post my list of trusted vendors.  Everyone is backed up for 6 to 8 weeks at the moment.  If you do have something that really needs to be done, contact me and let me see if I can find a fit for you.
Rental Market – We are once again experiencing a record year in vacation rentals.  If you do have a few weeks lagging to get booked, I will be happy to post your home on my business page for additional exposure.
Outer Banks Foodies – One of the top questions I get regularly is, where’s the best place to get…..  Here’s a quick peek at a few of my favorites around the area – CLICK HERE!
Filed Under: Home Buyers' Tips & Advice, Home Sellers' Tips & Advice, OBX Real Estate News & Data, Outer Banks Good Living Tagged With: ,

WHY DO YOU NEED A PROFESSIONAL REAL ESTATE AGENT, EVEN IN THIS MARKET?

February 12, 2021 By Ilona

Ilona Matteson, Beach Realty

Getting an offer on your home in an active market seems quite easy, and in most cases it is.  What do you need an agent for then?  Well, finding the buyer is just the first of dozens of steps in getting your home sold.

The question becomes, do you want to ensure you are getting maximum VALUE as well as maximum CONVENIENCE when selling?  It’s actually a pretty pain staking process to go through the entire 45 to 60 day process and requires many, many hours of time.

Many sellers think they can get an offer and then “let the attorney handle it”.  Yes, your attorney can manage the CLOSING.  That simply entails preparing your deed and handling the transfer of money AT THE END OF THE TRANSACTION.

Here’s what it doesn’t include:

  • Pre-Qualifying the buyer/agent/offer to make sure it’s a solid deal
  • Negotiating for the highest dollar
  • Choosing the best offer, in the case of multiple offers (it’s not always about the highest price)
  • Negotiating the home inspection, including finding contractors to give estimates, and meeting them at the home
  • Pest Inspection, Septic Inspection, Pool/Hot Tub, HVAC – knowing vendors and meeting them at the home
  • Prepping the appraiser or answering comparable questions – attorneys don’t have access to MLS, nor have been in the latest homes sold
  • Staying on top of the buyer’s loan process
  • Knowing which lenders and other vendors perform on time
  • Working with the rental company to transition buyer
  • Handling the dozens of calls from buyer/buyer’s agent throughout the process

Bottom line, we are experiencing an extreme number of homes selling per month.  All requiring an attorney to manage the closing.  The attorney is not available to answer calls throughout the day to deal with the day to day situations that come up during your closing process.  In addition to that, if they were available, they would be charging you per hour for that time.  Most attorneys charge around $200/hour.  On average an agent will spend 30 to 40 hours working on your transaction.

Even if you offer a commission to a Buyer’s Agent and think they can assist with these tasks, that’s true.  However, the Buyer’s Agent works for the buyer.  You are now essentially paying the buyer’s agent to work AGAINST you, without your own representation.

In the end, the best way to maximize VALUE and CONVENIENCE is to have a professional agent manage the ever challenging task of getting your home sale to a successful closing.

Filed Under: Home Buyers' Tips & Advice, Home Sellers' Tips & Advice, OBX Real Estate News & Data Tagged With: , ,

January 2021 Market Update

January 27, 2021 By Ilona

Supply and demand. That’s the basic economic principle driving markets for decades. Here we are! Finally experiencing some movement in the northern beaches market, after the slowest recovery ever from the 2008 market crash.

Sellers – if you want to cash in – now is the perfect time! Condition is still important to maximize profits, so contact me before any repair work so we can make the most of your investment.

Buyers – be pre-qualified, ready to sign an offer, prepare to offer virtually, and be prepared to offer over asking price in many cases. You need someone scanning the new listings daily. Now is not the time to go unrepresented. Let me know if you’re looking!

Corolla
57 Active listings 108 Under Contract

Duck
23 Active listings 22 Under Contract

Southern Shores
15 Active listings 19 Under Contract

Kitty Hawk
6 Active listings 17 Under Contract

Kill Devil Hills
24 Active listings 65 Under Contract

Nags Head
38 Active listings 38 Under Contract

Now you can see what we are working with. Contact me if you have any questions about our current market.

I do predict it will last this way through the year.

Filed Under: Home Buyers' Tips & Advice, Home Sellers' Tips & Advice, OBX Real Estate News & Data Tagged With: , ,

August 2020 OBX Market Report

August 7, 2020 By Ilona

How does inventory truly affect the real estate market? In a big way!!

Take a look at these two charts outlining the absorption rate for each location. FYI – absorption rate is a breakdown of how many months it would take to sell out the current inventory based on number of homes selling each month. This is important because it is the primary factor in determining if there is a rising, stable, stagnant or declining market (see graph below for more explanation).

 

As you can see, every location has experienced a decline in the amount of available inventory, some a very dramatic and sharp decline.  This is the precursor to the next step, rising prices.  It’s important we see prices rise gradually, over time, or we will experience another cycle like we saw in 2005.  I don’t think anyone wants to do that over again.

Bottom line, if you are on the fence about buying or selling, jump!  The market is ready for you.  To strategize to your specific needs, please contact me.

 

Filed Under: Home Buyers' Tips & Advice, Home Sellers' Tips & Advice, OBX Real Estate News & Data

July 2020 OBX Market Report

July 16, 2020 By Ilona

A lot of people have been asking me why the market has suddenly taken a turn. Fortunately this time, it’s a really good turn! The answer is quite simple if we take a look at the history of these real estate cycles.

I’ve been saying for over a decade now that these cycles, in recorded history, generally take about 20 years each turn. This is proven true over and over for the last 80 plus years. So, if we take a look at the last few cycle timelines, it just makes sense for this to be happening right now.

1985/6 – Real estate was booming – then – stock market issues, S&L crisis began
1988/9 – Things really fell apart – prices were at an all time high.
1998 – Prices started to return to the pre-boom spot (I specifically remember an oceanfront lot in Sanderling that we couldn’t give away for $250,000)
2000 – Activity went through the roof – the 10% ratio was introduced – property was selling fast, but no discernible increase in pricing, as the recovery was still in place.
2003 – 2005 – All hell broke loose. Prices soared, inventory was low, multiple offers on almost everything. We all remember those years.
2008/2009 – Once again, 20 years later another mortgage crisis and the whole thing fell apart.
2010 – 2019 – Very volatile times, especially for the northern beaches.
2020 – Once again, 20 years later we have another BOOM in activity, some areas are seeing a little boost in price, but overall no real trackable difference. It’s coming though!

All that being said, if you are thinking about buying – rates and prices are still quite reasonable. Income is high. I wouldn’t wait.

If you have been wanting to sell, get this…as of this week there are 850 properties under contract and only 792 single family homes active for sale. This is what anyone watching would call the “tipping point”.

I have seen in the last couple of weeks, multiple homes that have been for sale for YEARS, finally going under contract. Pay attention friends, it’s about to be another wild ride!

Here are some weekly stats to consider: (I’ve always said who needs a crystal ball when you track the statistics. This tells us everything we need to know.)

A new strategy is now needed to meet your real estate goals. If you would like to discuss the best strategy for you, please contact me right away!

Filed Under: Home Buyers' Tips & Advice, Home Sellers' Tips & Advice, OBX Real Estate News & Data, Uncategorized