With 8 months in the books the Outer Banks real estate market is still on track to break the all-time record for the numbers of houses sold in a year. This will be remarkable if it happens considering the year started out so bad with all of the snow up north keeping buyers from coming down the first 2 months. Since then the market has been on a blistering pace not seen since the boom years of 2003-2006. Demand is so strong for houses under $400,000 it's only taking an average of 90 days for a house to go under contract. This price range has also accounted for 65% of all sales so far in 2015. All of those sales are keeping the average sold price down a little this year around -2% but still above the all-time lows. New construction continues pop up all over the Outer Banks especially in the lower price ranges. Here is one interesting statistic that shows just how much the market has strengthened over the last 6 years. Below is the difference in the percentage of the average list price vs the average sales price:
2015 - 5.1% YTD
2014 - 5.4%
2013 - 6.4%
2012 - 6.6%
2011 - 7.1%
2010 - 7.6%
2009 - 7.8%
$300,000 house listed in 2009 on average sold for $276,600 and in 2015 $284,700
What does this mean for the Outer Banks Market- 1) the market is slowly turning from a buyer’s market to a seller, market, not there yet but things are moving in that direction. 2) As more buyers come into the market sellers do not have to reduce the prices as much to get their property sold. 3) Inventory is down as sales are at an all-time high. 4) Prices are slowly rising over the lows in 2010 and as buyer demand goes up inventory goes down leading to rising sales prices.
All signs are pointing to a strong fall selling season and into 2016. Home affordability on the Outer Banks is the best it’s been in 20 years with low mortgage rates and rental income at an all-time high. Speaking of mortgage rates the FED is set to raise rates so if you are looking to take advantage of the low 4% rates now is the time to do it. Once the FED starts to raise mortgage rates they are predicted to move up close to 5%. The stock market is going crazy these days so why not look at an investment that you can use, have someone else help pay for, and enjoy the possible tax benefits. On average the out of pocket costs of owning a beach house on the Outer Banks is approximately $500 to $800 a month.
If you are thinking about buying the fall is the perfect time to come down to look at houses. The weather is great, the tourists are gone and the houses are available to see. Contact me today to get the process started and schedule your trip to look at property!!