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Happy March!
What a mild winter we have had here at the beach so far. We are not complaining, that’s for sure.
I’ve got a couple of pretty interesting topics this month…let’s dive in.
Market Report
Mid Currituck Bridge
Taste of the Beach
Yes, it’s March and time for my absolute favorite OBX Event of the year! If you’ve never been, you are missing out on some of the best dining experiences we have to offer. If you can make it to town the weekend of March 24 – 26th, you won’t be sorry! Let me know what some of your favorites are! Click here for the event website.
Agent of the Year
Beach Realty and Construction’s Agent of the Year for 2022
Beach Realty and Construction’s Agent of the year for 2022
Congratulations to Beach Realty and Construction’s Agent of the year for 2022, Ilona Matteson! This is Ilona’s third year in a row earning the title of Agent of the Year! In the year 2012 Ilona first achieved this award and has gone on to earn the title 5 more times! We are proud to have Ilona as a leader, trainer, and valued agent on our team.
Ilona Matteson brings a wealth of experience and knowledge to the sales team at Beach Realty & Construction. As a former sales manager for Beach Realty and a former coach for the nationally acclaimed Mike Ferry Organization, Ilona knows the real estate business inside and out. In 2004, she was selected for the annual 30 Under 30 feature for Realtor Magazine and was also a licensed instructor employed by the North Carolina Academy of Real Estate. Ilona has a thorough understanding of market conditions and works diligently for her clients.
Be sure to call Ilona Matteson for all your Real Estate Needs!
Happy New Year from the OBX
Hello and Happy New Year!
What an interesting few years in the real estate world, and the world in general! I got to spend a good bit of time with my niece and nephew over the last 18 months and do a little bit of traveling. After 26 years in the business, I was so grateful and fortunate to have the opportunity to still assist some new and past clients while enjoying that precious time with family!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!
May OBX Update
We love having you here!
I’ve got 3 updates to share this month:
5 Reasons To List Your Home in the Summer
Although it sounds reasonable to think with all the guests coming, it would be better to just sell the home in the fall or spring, take a look at these 5 reasons you could be missing out by waiting.
- Inventory has been our biggest challenge in terms of pricing. June, July, and August are historically the time of year when our inventory is the lowest. Why not take advantage of that incredible opportunity? Lower inventory could mean higher prices.
- The Outer Banks will have over 3 million visitors each year. Obviously, the majority of those folks visit during the summer months. We cannot get that kind of exposure any other time of year!
- The home is fully open and operational. Buyers will have inspections done before closing. When the house is winterized during the fall/winter there are extra costs to open the house back up for those inspections. Right now, everything is up and running and easy to inspect and ensure to the buyer the home is in good condition.
- It’s a beach house! When does the beach look the best? Summertime of course. Your beach house will show the best with sun shining, deck chairs out, pool open, hot tub running! Buyers get excited about these things and it helps to sell your home.
- Buyers this time of year are serious about buying! If a potential buyer is going to take time out of their much-anticipated vacation to look at your home, it means they are serious about buying. They’re here with all decision-makers too.
February OBX Market Update
It’s almost Spring!
COVID-19 & the OBX Real Estate Market
The real estate market is adapting quite well to the current restrictions and Stay at Home order that is in place for North Carolina. While we are doing some things the same, since our market is largely based on out of town property owners, many things have changed to keep things going smoothly.
Here’s what’s new:
1. Virtual Showings – While my listings always feature high end professional photography, this week I’m also getting them all set up with 3D Virtual Tours. This will give prospective buyers the feeling of actually being in the room. We are doing FaceTime and Zoom showings for buyers as well.
2. Virtual Open House – Our local MLS is implementing a new feature to promote and hold and Open House virtually. The details of this feature are still being released. This is an exciting update to a market like ours. I can see this being a great new tool used on the regular after this event is over. I’ll be setting up a few of these in the next week. Contact me if you’d like to participate.
3. Appraisals – Local lenders have assured me that when it makes sense, underwriters are giving appraisers the green light to perform desktop appraisals. This way, properties with high risk inhabitants don’t have to be exposed, yet we can still make progress on the sale of the home.
4. Lenders – With the IRS unable to process any transcript requests before closing, our local lenders have been authorized to skip that requirement for the time being. It will no longer be needed to receive a clear to close. This is showing great versatility and willingness to keep transactions moving.
5. Virtual Closings – While NC does not currently support virtual notaries, you may be in a state that does. We have been doing out of town closings as long as I’ve been in the business, so that part of it is nothing new. Virtual notaries are approved in 35 states. So if you have a closing coming up and need documents notarized check and see if they can do it online instead.
6. COVID-19 Addendum – NC Realtors did quickly create and distribute a special addendum regarding this pandemic that allows buyers and sellers to have a little more time to close if delays occur related to the shutdowns. It also allows the buyer to cancel if they get laid off and become unable to close due to not obtaining loan approval. Lenders will still be verifying employment 5 days before closing.
7. Some not so welcome news – minimum credit scores have been raised to 640 or 680, depending on lender. This is up from 580 minimum. We are also seeing some lenders no longer locking in Jumbo rates. So we may see Jumbo loan guidelines get an overhaul and be much stricter (anything over $510,400), and some no longer doing these loans at all for a while.
Overall, it’s all about adapting. Which we are doing. If you are thinking about buying or selling, we can still make that happen for you.
In fact, of the 112 properties that have gone under contract in the last 30 days, more than 50% of them were also just listed in the same 30 days. Some will be more comfortable moving forward at this time, and some won’t. Either way, please let me know how I can help.
