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 we 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 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.