NC- Outer Banks Resort Rental Outlook 2009

By
Services for Real Estate Pros with Tranzon Fox Auctions

Summer rentals are the lifeblood of the Outer Banks barrier islands-- the success of the shops, restaurants, tax base, real estate sales, tourist destinations, historic sites and museums are all dependent on how many visitors come and rent beach houses between May and September.

With the slump in the real estate sales market and the national economic downturn, what's the forecast for 2009 summer beach rentals in the Outer Banks? 

People can reserve their favorite houses early with a small deposit;  then in January, half of the rent is due for a confirmed reservation.  Confirmation deposit receipts are lagging by about 25% this year.  The hope is that some of these missed payments will filter in and local brokers are of the opinion that rental revenues will be down by about 15% from 2008.  The hope is that people downgrading from European and Carribean vacations will "resort" to the Outer Banks.... and that these will make up for the people who have to cancel out due to lost jobs and other hardship.

Brokers definitely feel that people will be waiting later in the year to make their vacation commitments-- waiting even until the last moment to reserve something, since they can readily check websites to see what houses are still available.  There is also early evidence that vacationers will be negotiating for bargains and discounts early and hard.  The consumer is king these days!

 

 

 

Comments (3)

Susan Haughton
Long and Foster REALTORS (703) 470-4545 - Alexandria, VA
Susan & Mindy Team...Honesty. Integrity. Results.

We own a small oceanfront home in KDH and feel the timing of the confirming deposits hurt this year - too close to Christmas during this economy. 

We usually have about 14-15 weeks booked in January;  before deposits were due, we had 14 weeks pre-booked.  When it came time for deposits, though, all but 5 dropped off. 

Just in the past couple of weeks, though, we have picked up 14 weeks for a total of 19 - all prime weeks are gone.  We are booked solid from mid May to mid August, with a few off season weeks booked, as well.  We feel confident the remaining weeks will book, but the trend is definitely "off" this year.  We have other friends with rental homes in the same general area and they are now doing very well with rentals after a slow start. 

 

Mar 08, 2009 02:14 PM
Bob Foster
Century 21 Lanthorn R. E. Ltd. Belleville, Ontario - Belleville, ON

The economic downturn seems to hit so many areas of enterprise, and the sotry is often the same. If I had a few more sales lined up, I would definitely be booking for a bargain, but that doesn't make it easier for anyone on the receiving end of what is happening throughout the eceonomy.

Mar 08, 2009 02:28 PM
Linda Staples Terry
Tranzon Fox Auctions - Richmond, VA

Susan, glad to hear the rental reservations are coming in after a late start.  It will be REALLY interesting to see what our KDH oceanfront brings in the Bankruptcy auction April 18.  Only one oceanfront has transferred in all the OBX in the last 13 months.  I think all eyes will be on our auction to see where the price lands.

Mar 13, 2009 10:23 AM