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!

Happy New Year from the OBX

Hello and Happy New Year!

Happy New Year from the OBXWhat 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!
Market Update – I’m excited for what’s to come in 2023, and I’m sure you’re curious about what the market climate is right now.  Here’s a link to my 2023 Real Estate Market Predictions.  Hint, under contract and sold properties are already down 50% from this time last year.  What do you think will happen next?
Suggestions – As I gear up to write these informative messages to you, I’d like to know if there’s any specific topic you want to know more about.  Message me with your ideas!
Construction Projects – If you are interested in doing any work to your home this spring, I have a carpenter who actually has the next few weeks open.  His skill level is vast and can handle most small to moderate-sized jobs.  Flooring, decking, windows, some siding jobs, bathrooms, drywall, etc.  Contact me for more information.
2023 Goals – It is my goal to help 33 families buy or sell on the Outer Banks this year.  If you or anyone you know is interested, I would love to help!

Fall Outer Banks Market Update

October on the Outer BanksTraditionally 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.

There are some great advantages to selling your home in the fall:

  • You’ve collected the majority of income for the year and won’t have to carry the home over the winter months.
  • Buyers have an opportunity to make changes/remodel the home over the winter to be ready for the next season
  • There are fewer homes on the market as many have the mindset they will wait until the Spring to sell.
  • Buyers who were just here on vacation generally enjoy a fall visit to look at homes because the weather is nicer and properties are now more available to view.
  • Many buyers want to make a purchase before year end for tax reasons

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!