Hello and Happy New Year!

Outer Banks, NC Real Estate Resource
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:
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!
An interesting trend is popping up for the year so far. We have sold more homes, granted marginally, but for less volume. So, that means either we are selling fewer high end homes or prices are still going down.
Let’s look at the stats:
This tells us two things. Fewer high end homes are selling and fewer homes are available for sale under $200,000. The lower end price range is a no brainer. They will always sell regardless of the economy and market. It’s the beach, for less than $200,000! The bright spot is that those homes are seeing a bump in value. As things stabilize that price range will always be the first to jump. Great sign of improvement there.
However, high end home sales do indicate trends. To be fair, there was a $5,000,000 home sale in January of 2014 which is clearly skewing the numbers. Even so, there were 6 fewer high end homes that sold so far this year. And, there are more of them for sale than in 2014. So, that indicates a slow down in that market. I’m not quite sure of the cause, would love to hear your thoughts on this.
That covers the first challenge. The second challenge is that home prices above $300,000 are still dropping, even if just slightly. Consider these stats:
From Nags Head to Corolla:
Those are some sobering stats. My goal is never to be Debbie Downer, yet always look at true reality. Most homes are STILL having to adjust their price at least once in order to sell and there are still two times the number of homes coming on the market each month as are selling. It doesn’t take an economics major to tell you that is still a recipe for lower prices.
Same moral of the story as every month…if you want to sell, there is no financial gain to waiting it out short term. If you want to buy in the under $300,000 range, you’re going to face some competition among other buyers looking for the best deals. Let me know how I can help!
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!
You will love this cute and cozy beach house right in the heart of Duck. This home sits right in the middle of Marlin Drive. Easy access to the beach or the foot/bike path into Town for shopping and restaurants. Enjoy three bedrooms and 2 full baths on the top floor. Along with an open concept kitchen, living and dining area. Relax on the screened porch for shade or sun on the huge, open back deck. The ground floor offers an outside shower, storage and another large bedroom and bathroom. The septic was updated in 2005 to accommodate the additional bedroom. This home has been well cared for and it shows.
Never rented, just used by family and friends.
What a home!!! So many updates and upgrades have been done to this great Section C home. Within the last 3 years there was a new kitchen with granite countertops, all new tile flooring on the top level, new carpet in 4 bedrooms, new wood floors in hallway and steps, updated bathrooms with tile shower, pool, and furniture. New for 2014 is the roof, elevator, front deck with Trex material. Move in ready and CLEAN! It’s a great rental home or second home. HUGE lot with excellent privacy it feels like it’s the only home around. Enjoy the ocean views and extremely short walk to direct beach access. The top floor features a HUGE and open living/dining/kitchen area with more than enough room to spread out. In the off season you can relax by the wood burning fireplace.
What a home!!! So many updates and upgrades have been done to this great Section C home. Within the last 3 years there was a new kitchen with granite countertops, all new tile flooring on the top level, new carpet in 4 bedrooms, new wood floors in hallway and steps, updated bathrooms with tile shower, pool, and furniture. New for 2014 is the roof, elevator, front deck with Trex material. Move in ready and CLEAN! It’s a great rental home or second home. HUGE lot with excellent privacy it feels like it’s the only home around. Enjoy the ocean views and extremely short walk to direct beach access. The top floor features a HUGE and open living/dining/kitchen area with more than enough room to spread out. In the off season you can relax by the wood burning fireplace.
This home is the perfect getaway just North of “downtown” Duck. Enjoy a short bike ride or stroll into town for shopping or restaurants. Lovingly updated just a few years ago you’ll find laminate wood floors, newer carpet and furnishings throughout the home. Ground floor game room with separate entrance is a great place to hang out after a day at the beach. Enjoy the hot tub or rooftop deck at sunrise! The open concept kitchen/dining/living room is perfect for entertaining with floor to ceiling windows facing the Sound for plenty of natural light.
1450 Duck Road
Duck, NC 27949
Work: (252) 261-6600
Cell: (252) 619-5225
Fax: (252) 261-2200
You will receive the most up to date Outer Banks news once a month like information on flood insurance, market stats and updates, bridge news, local happenings and more!