February Market Report

With all the insurance and septic news, I’m going to be brief on this month’s market report and just give you the numbers straight up. With only one month in, there isn’t a lot to analyze anyway.

Not much has changed since December, except in Kill Devil Hills showing the only noticeable difference. Which is not unusual for this time of year. We will compare again in April and see if anything changes.

Area Active Now Active Dec

Area  Active Now  Active Dec
Corolla 81 88
Duck 16 17
Sshores 16 17
Kitty Hawk 15 18
KDH 49 60
Nags Head 43 40

Not a lot going on just yet, but don’t worry things will heat up in a few weeks! I’ll be watching.

If you’d like more information on buying or selling, please reach out.

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!

May OBX Update

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:
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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.

  1. 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.
  2. 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!
  3. 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.
  4. 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.
  5. 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.

2015 Mid Year Outer Banks Market Report

We now have 6 months worth of data in and the results are pretty much what we expected for the real estate market performance.  Here are the bullet points:

  • Up in NUMBER of sales by 9%
  • Down in average sale PRICE by 8%
  • Numerous homes in each market are selling in less than 100 days
  • Of the homes selling quickly, it’s just a few % points of asking price
  • Distress inventory is less than 5%
  • Active inventory on the OBX remains over 3,000 listings
  • 10% of active inventory is under contract, which means 90% is NOT

Here’s a quick breakdown by marketplace:

NOTE:  The days reported INCLUDES the time it took to close the transaction, which is generally 35 to 50 days.

Ilona Matteson's July 2015 Outer Banks Real Estate Market

The good news is, if you price it right, it will sell!  Buyers are looking and ready for the best values and aren’t afraid to take action.

If you’d like more information about buying or selling on the Outer Banks, please contact me right away!

Contact Me Today!

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New Listing on the Beach in Kitty Hawk!!

OBARMLS80558OGreat opportunity to own a piece of Kitty Hawk history! Originally built by Beach Realty & Construction. This home has been well maintained and has a solid rental history. Enjoy the privacy of the two vacant lots to the north (they are unbuildable). Listen to the waves crash from any of the three bedrooms, or upstairs loft. Watch the dolphins from your deck or just have coffee with the sunrise. You can’t go wrong with and Oceanfront home at this price that is fully insured!


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This Ocean Sands Beach Home is a Straight Shot to the Beach!

741 Sea Horse Court, Corolla, NCStraight shot down to the beach!

Location, location, location! Enjoy a straight shot down to the beach from this fantastic Ocean Sands beach home. With 5 bedrooms, 3 full baths, ample decking, large living area, screened porch, awesome ocean views, and excellent condition this home is a real gem.

Guests love this place as evidenced by many returning year after year.