Outer Banks, NC Real Estate Resource
While there isn’t much change to report this month, I predict by October/November there will be more inventory and the beginning of a quantifiable shift in pricing. You know I’ll keep you posted! To see the full effect of the logarithmic path, I’m comparing January 2024 to July 2024.
| Jan 2024 | Jul 2024 | |
| Months of Inventory | 4.8 | 5.9 |
| Active Homes | 492 | 700 |
| % Under Contract | 24% | 21% |
| Price Changes/Month | 171 | 232 |
As we approach the second half of the year, it’s important to notice the little shifts happening along the way. Remember, real estate markets don’t crash overnight. It happens slowly at first, then all of a sudden. We are in the slowly at first phase.
Our market here gets insulated because it’s not a primary market. Being a discretionary sale and discretionary purchase for the majority of transactions, it provides a lag time from when we start to see primary markets destabilize.
If you are thinking about what to do with your OBX investment home, you need to look big picture. Consider first and foremost, just because you don’t HAVE to sell, does not automatically mean that keeping the home is in the best financial interest for your family. Always consult your financial adviser for guidance.
Let’s now take a look at the two options, sell or keep. Regardless of what you choose, this information will help you set up the best expectations for either choice.
If you employ a listing strategy with this in mind, you will maximize your return and get the home sold in a reasonable amount of time.
If you do decide to keep the home through the next cycle, let’s at least put together a plan to get your home updated and where to best spend the money. I also have a list of trusted vendors who can help you get things done.
Now that you have the big picture, let me know if I can be of any help as we navigate this next market shift.
What a difference a year makes! Long story short, there are some BIG moves that are happening. I’ve talked before about algorithmic decay. This chart here is exactly that! Little, by little, by little, then bang. That’s how markets change. Tale as old as time, song as old as rhyme, it’s almost as good as a crystal ball.
Anyone saying the real estate market on the Outer Banks is not changing is just not paying attention.
We are on the cusp of a price shift potentially starting this fall. Here are the facts about our market:
If you are on the fence about selling your home, your window is closing before we start to see quantifiable price shifts. Call me today to discuss the best strategy for selling in today’s changing market.
A lot of agents will do presentations on how they came up with a price for your home. It is a task that does require some skill. The challenge of course is getting the seller to agree to the pricing suggestions.
Many sellers come into the meeting with a general idea of what they want for the home, which is helpful. However, here are a few ideas on what NOT to do when you decide to sell your Outer Banks home in today’s market.
Now that we’ve covered what NOT to do, if you need help pricing your Outer Banks home for a prime spot in our market today, certainly let me know how I can assist you!
Mid-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:
A conventional loan amount is $726,200. With the typical 20% down, that means a purchase price of around $875,000.
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.
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!
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!
Traditionally the number of closings for our market spikes in October. We are coming off of an unusually slow previous 6 weeks of activity. However, things have picked right back up. So rather than see the spike of closed sales for October, we will probably see it for November.
Want to know what your home is worth in today’s market? Email me here for a FREE comprehensive analysis.
Thinking about buying? Be sure to keep an eye on interest rates. Did you know that if rates go up by only 1%, you would have to purchase a home for MORE than 10% less in order to have a lower monthly mortgage payment.
If you’ve thought about buying or selling on the Outer Banks and need additional information please contact me!
