North Topsail Beach Prices Bump Significantly
In detail on North Topsail Beach homes and how prices have been going up dramatically.
Some of the transcript here:
Next, let’s go to a different size home, this would be Oceanfronts North Topsail Beach, NC, Oceanfronts 1900 to 2200 square-feet. Going back a few years ago they were closing $495,000, $580,000 and then this last year $579,000 and $570,000. So they bumped up 6%, not very dramatic but it is, it has started heading that way.
And now we go to a larger square-footage. The 2300 to 2600 square-feet homes going back a couple of years, you had all these homes selling for $560,000, $528,000, $520,000, $565,000. Come forward to last year, $685,000, $649,000, $643,000, $790,000. This is plus 28% in 2 years, okay. And what I did is I took out brand new homes, I didn’t want to mess with the data or distort, I try to use similar situations. I took one home out because even though it was technically Oceanfront, it was really sort of like second row behind like we call a piano key, it was behind some other homes. So this is very detailed insight info that you can’t capture from third-party sites like Zillow or [indiscernible] [00:03:50] real estate research, etc.
What goes down must come up. Some of these homes that used to sell, you know for $400,000 probably they were signed for $700,000 in ’08. The going up process has started so if you don’t buy your North Topsail Oceanfront home now, 2 years from now what’s costing $450,000 now might be $525,000, can you afford that? Not only that, this crazy 3.75% interest rate, they have been saying it’s going to change for years, the top-listing broker in the region put a Facebook post up a few days ago, how his interest rate was you got contacted by his lender, was not going up. So if these go up another percent, then you lose perhaps 11% of your buying power for example. So not only the price is going up, you lose the amount of what home you can afford based on the monthly payment. So it’s almost like a double whammy, it’s like you are losing 20% of what you could afford. So this is time sensitive, if you can buy an Oceanfront home now, in North Carolina, buy and rent it out.
For example this home here had closed for $430,000 that’s grossing like 50 grand a year in revenue. So you can buy a home now and offset a big portion of your fees with gross rental income, okay. And then you can move into it later full-time when you are ready a few years from now. Here is the other thing to remember, we have only had 1% growth GDP Gross Domestic Product in the last 8 years. That is extremely horrible, it’s the worst economic recovery in the history of the country, as my understanding, that is what it is, it’s not Democrat, its Republican it’s just the factual economic reality. We are due for some 3% and 4% economic growth again. And when that happens a lot of money is going to come of the sideline, I think a lot of it’s going to be cash money. And these people are going to come and buy Oceanfront homes, these $450,000 homes are going to be buying them for $600,000 cash.
The increase in interest rates won’t impact them, but the prices will still go up anyway. So those of you who plan on financing a second home or retirement home, you are going to be hit because the prices are going to go up, even though the interest rates go up, so you would be able to afford less while the values are up simultaneously. You need to start to look, if you can pull it off, now is the time to buy a North Topsail beach, Oceanfront home for sale, because you might not be able to afford it later. And besides, in the meanwhile there is revenue to be made, tax write-offs to be taken advantage of, and then of course appreciation. Remember this $450,000 right now you buy, probably and within 10 years it would be worth $700,000. Okay so this is an asset in your portfolio, in addition to the revenue, and the home of course is paid off as well in that process.
All right. Over now if you need an aggressive buyer agent, I am probably the only realtor in Southeast North Carolina that actually works on all the beaches, Sunset Beach up to North Topsail Beach because I live out in the country, so I am equidistant to all of them. My last four closings have been Holden Beach, Oak Island, and North Topsail, and Wrightsville Beach, okay. So I am the right realtor to help you when it comes to your second homes, vacation home properties. And because I came here from DC metro, I am way more aggressive negotiating than all these local yocals who just do what I call coastal negotiating. It’s just sort of a façade, it’s laidback you know all that kind of thing. Look, you can be aggressive and be pleasant at the same time, that’s what video and email presentations are for when it comes to getting you the best deal as a buyer. Talk to you soon.