The most important trends we saw in the last 12 months are as follows:
- Residential units sold were down 2% (34 units)
- Average sales price was down by 5% ($17,743)
- Average sales price was $348,598
- Distress sales units sold down 21%
- The majority of this decline happened in the last 6 months of 2013
- Land sales were up by 14%
- Average price for land down 23%
- Active inventory remained high and appears to be climbing again
The conclusions we can draw from this data are that the market looks like it wants to stabilize. With sales staying active and pricing not seeing a sharp decline that points firmly in that direction. However, cause for concern is still the increasing inventory and the fact that December foreclosure numbers went back up again.
It remains a great time to buy a home on the Outer Banks as interest rates are still under 5% and are expected to stay that way well into 2014. There’s plenty to choose from if you are looking to make an investment this year.
For those thinking of selling, it’s not ideal as far as pricing is concerned. However, weigh the difference between the current market value and the cost to keep the home waiting for prices to rise and you could see it makes more sense to sell now. There will be a turn around for pricing, just not in the short term.
For 2014 here’s what we are predicting:
- Residential units sold should remain about the same
- Average sales price could see another dip with inventory levels being so high still. It should stay in the 5% range.
- Average sales price should remain about the same
- Distress sales should stay down but more data is needed to be certain
- Land sales will continue to go up as the prices drop. The cost of building new is starting to be less than buying existing.
- Inventory will spike at the usual times around March/April and again in Septebmer/October.
The Outer Banks is a year round market. If you have thought about selling, there is no real financial advantage to waiting to put your home on the market. The best strategy is beating the supply and demand issue. Listing now, before Spring, will get you in front of buyers looking this year with less competition for them to choose from and potentially netting you more.
Please let me know how I can help you further. For a search of the best homes available click here. To get a free market analysis on your home click here.
