October 2016 Real Estate Update for the Outer Banks

Three tropical events have somewhat affected sales since the summer season. This real estate update will delve into their impacts. Often times buyers will cancel their plans to look at property when a hurricane or tropical storm is forecasted to come near the Outer Banks.  This happened over Labor Day weekend with Tropical Storm Hermine and Hurricane Matthew in October.  Tropical Storm Julia was also close by for the weekend of September 17.  Despite all this bad weather the number of sales agreements written in the month of September were close to what wSales Agreementse had during the prior year. For the year, written sales agreements are also very similar to what they were in 2015.  Bad weather years don’t happen that often. The archives of the National Hurricane Center show that we have had more storms come close to us than any year since 2012.

According to the Outer Banks Association of Realtors’ September report, the number of residential sales for the year is off just 1% but average prices and median prices are up. The number of land sales is actually up 6%.  The fact that our market is holding its own is a good sign.  Will this year be as good as 2015? It’s hard to say but if we just stay close then it should be considered a successful year.

Absorption Rates

Absorption rates continue to go down as the inventory dwindles.  You can also see that absorption rate is at its highest when the weather is less conducive for people to get to the Outer Banks.

If you are considering a purchase there are still properties for sale in just about all market segments and interest rates are very favorable for borrowers.  If you are selling and you are not getting much activity then it is likely you may have to improve the price or the condition of your property. Even with our current level of demand buyers are price sensitive.

See our entire October Report at http://i.c5z.net/e12/i/u/10116302/f/marketindicatorsoct16.pdf . Or go to the Market Info section of our web site for report archives.

 

 

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Fall 2016 Carolina Review

A beautiful, late summer OBX day!

A beautiful, late summer OBX day!

There’s quite a bit of good news for Outer Banks real estate lately.  From flood zone changes to improving market conditions you can see information on these stories and more in our fall newsletter.  Here’s a link to where you can see the entire newsletter: http://i.c5z.net/e12/i/u/10116302/f/carolina_review_vol_13_issue_2.pdf

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Historically Speaking…OBX Real Estate is Good

A comparison of many OBX real estate indicators over the last ten years shows that our market is much more healthy than it has been in years.  The Outer Banks Association of Realtor’s MLS August report says there have been more sales agreements this year than any year since the boom years of last decade.  My number is slightly lower than last year but that is because some contracts are voided by the time I count sales agreements (see how I count at the end of the report on in the market section of my web site).

ten-year-listing-inventory

Included in this report is a graph showing the number of listings in the local MLS system over the last ten years. In the summer of 2005 there were around 4,500 listings in our MLS system.  As of this week there were less than 2,700!  You can also see how each year the inventory fluctuates based on the season.

 

 

kitty-hawk-absorption-rate

Here is another interesting indicator. It is the absorption rate for Kitty Hawk over the last eight years. I picked this town because it is close to home and is fairly representative of the Outer Banks market. This graph shows how long it would take for all the residences in Kitty Hawk to sell if they were selling at the current rate and no more were listed. Absorption rate helps us figure out when demand will put pressure on prices. Absorption rates rarely get lower than five months in this resort market. It’s my opinion that demand begins to pressure prices in this market when there is somewhere between six and eight months worth of inventory.  You can see the recent absorption rates for other market segments later in this report.

The market report also shows that the sold price per square foot continues to show slow growth in values.  Distressed sales inventory has leveled off at just three percent of the total Outer Banks inventory.  Click here for the entire OBX real estate report.  You can also go see previous reports at our Scott Team Realty Market Info page.

 

 

 

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OBX Real Estate Market Update June 2016

June 2016 obx listingsThe OBX real estate market is seeing good signs in most market segments. After a somewhat slow start to 2016, sales agreements picked up significantly in April and May. In fact, demand was so strong that the inventory dropped earlier than usual. The number of listings in the Outer Banks MLS system usually peaks in June or July. This year the peak of inventory was in April.

 

OBX Sold Price Per Square FootA few other good signs are the increases in sold price per square foot, average sales price and median sales price for OBX residences. The beginnings of a “U” shape can be seen in the sold price per square foot graph found to the left. The monthly Outer Banks Realtor report states that average and median prices were up about 9% and 10% respectively for the first five months of the year.

 

So when should we see the same prices as the boom years in this OBX real estate market? Please keep in mind it took many years of a bad economy to get to the bottom of this last real estate cycle here on the Outer Banks. It is likely to take a similar amount of time for values to reach their former levels. Supply and demand are key determining factors in prices increasing.  A common way to measure supply and demand is the absorption rate.  Absorption rates are still fairly high in some Outer Banks areas. Sales prices won’t be pressured much until absorption rates go down more.

Stronger Outer Banks sales are a welcome sign to buyers, sellers and Realtors. As this summer rolls on and inquiries continue to come in, it looks like this trend should continue for some time. If you would like to see the entire OBX real estate market report, you can see it at this link.  Also you can see much more information about real estate here at ScottRealtyobx.com

 

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Summer 2016 Carolina Review

Launching a catamaran off the beach this time of year is ton's of fun!

Launching a catamaran off the beach this time of year can be ton’s of fun!

Here’s the latest Carolina Real Estate View from Scott Team Realty. Inside you’ll find an update on beach nourishment for Kitty Hawk, Kill Devil Hills and Duck, some ideas to save money on flood insurance and an update on the real estate market.  For back issues of this newsletter go to http://scottrealtyobx.com/carolina_review

 

 

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Outer Banks Market Report March 2016

Supply is on its way down.

Kitty Hawk residential listings are as low as they have been in years.

Old Coast Guard boat basin at Oregon Inlet.

Old Coast Guard boat basin at Oregon Inlet.

Real estate sales on the Outer Banks continue at a pace similar to last year.  This is good news because last year was the best year since 2005. More good news for sellers is that there are fewer Outer Banks homes for sale in most areas. Over the last few years inventory has been too high for demand to pressure prices up. The current low supply of OBX homes may impact prices soon.

Are Outer Banks property values increasing?

Sold Price Per Square Foot

Slow trend up in the average sold price per square foot.

Another good sign is the recent increase in the average sold price per square foot of heated living area for residences.  January was the first time in almost six years where this number went above $190 per square foot for Outer Banks homes. February was not far behind with an average sold price per square foot of just under $190. Upward movement in this statistic either indicates rising house prices or a trend of buyers buying houses in more expensive areas.

Is it a good time to buy?

There are still pockets of areas where good values are available in many places on the Outer Banks. Vacation rental income continues to be good for properties. Couple this income with low interest rates and affording a vacation rental home is as easy as it has been in years. Buying in the spring can result in picking up some immediate income for the property so if you are thinking of buying soon, it might be worth taking a look around. If you are thinking of selling it’s likely that prices are not as high as they were ten years ago but there are plenty of buyers looking for value.

Scott Team Realty puts out a market report on a regular basis.  Here’s a link to the most recent entire report.  http://r.b5z.net/i/u/10116302/f/marketindicatorsmar16.pdf

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OBX Market Report End of Year 2015

OBX Real Estate

Snow in Kitty Hawk

The Outer Banks real estate market is showing many signs of recovery. In 2015, the Outer Banks Association of Realtors statistics showed an increase in the number of sales and a decrease in the number of properties for sale.  Over the last ten years, the over abundance of beach properties for sale was a key factor in lower values of local real estate. Demand is now increasing values in some OBX areas.

A market segment where demand has recently pressured prices is entry level lots. In 2014, over ten entry level lots sold on the sound side of Kill Devil Hills for less than $60,000.  In 2015 only two lots sold for less than $60,000 in this area and some similar lots were going for as much as $70,000!  Higher valued properties saw much less of an impact in 2015.active OBX distressed inventory

Another positive trend is the decline in distressed properties. Bank owned property made up less than 5% of the inventory for most of the year. Recently as 2013, distressed properties made up more than 10% of the active inventory. There are still some foreclosures and short sales occurring but they are having little impact on the Outer Banks real estate market.

OBX sold price per square footOverall, the sold price per square foot is still well below what it was ten years ago and we have not seen an appreciable increase in average sales prices in many market segments. Similar demand and supply is likely to result in increases in these key appreciation indicators over the next year or so.

If you are thinking of selling and don’t have to sell then you may want to wait a year or two.  It’s likely you’ll get a higher price in 2017 or 2018.  Buyers looking to buy are less likely to find properties with today’s great prices after 2016. If you want to see this entire market report.  You can find it at this link or go to the Market Info tab of http://scottrealtyobx.com.

 

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December 2015 Outer Banks Real Estate Report

The Outer Banks real estate market continues on its slow but steady way back from a long downward cycle.  According to the Outer Banks Association of Realtor’s MLS statistics, total residential sales are up 12% for the calendar year. Sales volume is up only 9% so properties are selling on average for slightly less this year compared to last year. The sold price per square foot for residential sales confirms this indicator as well. Since 2010, we have not had a single month where the average sold price per square foot of heated living area was over $190. Another indicator that points towards just a slight change in residential sales prices is the median sales price.  It is only up 3% for the year.

 

median sales pricesA positive indicator for sellers is that inventory is down in almost every market segment compared to last year at this time.  Once demand kicks in again next year we may actually see demand pressure sales prices.  Probably the most positive sign in our current market is the absorption rate.  As this rate goes down the market becomes more of a seller’s market.  Local absorption rates have been trending down in almost all markets over the last year or so. absorption rates

 

Distressed sales are almost no longer a factor in the local market.  Distressed inventory is now below 5% of the total inventory and distressed sales are such a small part of the market that they have a minimal impact on property values.

Well priced properties sell quickly in this market. If you are a buyer don’t hesitate to make an offer on what you perceive to be a good value or you’ll likely miss it.  If you are a seller if you are not getting lots of showings and offers then it’s likely the market believes you are over priced. Here’s a link to the entire report. Please feel free to contact Scott Team Realty if we can help you here.

 

 

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New Carolina Review

Sunrise at the Kitty Hawk Pier

Sunrise at the  Kitty Hawk Pier

Great weather is expected for an Outer Banks Thanksgiving! Here’s the latest Carolina Real Estate View with some things in it to be thankful for. Enjoy this great holiday with friends and family! Here’s a link: http://r.b5z.net/i/u/10116302/f/carolinareviewvol12iss2.pdf

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207 W Kitty Hawk Road

DSC01917

This six bedroom, five bath home has it all! Enjoy great ocean views, a large game room a pool and a hot tub. All for only $449,000! Here’s a recent video of the property.

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