How We’re Handling the Health Crisis

Although the current real estate environment might be worrisome for buyers and sellers, rest assured that we can still help you succeed in achieving your real estate goals. Here’s how.

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Today we’re discussing some of the more serious issues going on in real estate due to the health crisis. Before the pandemic, we were cruising along in an energetic market, but that has decreased noticeably in the current climate.

At our offices, we’re closed to walk-in traffic and have limited what staff can be there. Some of these things create a bit of anxiety for our clients or those considering buying or selling. We want to allay some of that uneasiness today. To learn more about what we can do for you during these uncertain times, watch the video above.
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What to Expect From Our 2020 Outer Banks Market

Our Outer Banks market is poised for a great 2020. Here’s why.

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What’s in store for our Outer Banks market in 2020? To answer that question, let’s recap what happened in 2019.

November was the biggest month in terms of homes going under contract since the MLS started tracking this metric in our area in 2013. This means that January and February of 2020 will feature a tremendous number of closings, which is a good thing because it creates momentum heading into the second quarter of the year.

Before that, the market almost stalled near the end of the second quarter and the beginning of the third because interest rates jumped. After rates were reduced (twice), the floodgates opened. Interest rates are still low and the market is still strong, so if you’re thinking of buying or selling, now’s the time. 2020’s first quarter should be stronger than anything we’ve seen in the last decade.  

I think we’re in store for a great 2020 in the Outer Banks market.

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After this propels us into the summer months, if history is any indication, we should see a bit of a dip right before the election. Uncertainty creates indecision, but that’s OK—we expect a great fall/winter season next year, which will put us in a great position once 2021 is ready to begin.

Keep in mind, I don’t have a crystal ball. If the Federal Reserve were to raise interest rates by 0.25% or even 0.5%, it would slow everything down considerably. That being said, I think we’re in store for a great 2020 in the Outer Banks market.

If you’re thinking of buying or selling a property or you have any more questions about our Outer Banks market, don’t hesitate to reach out to me. I’d love to help you.

An Update on Our Fall Market & the Post-Dorian Cleanup Effort

As we look toward fall, it’s a good time to buy or sell in our Outer Banks market.

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Today I want to give you a quick market update as we enter the fall of 2019. In short, our Outer Banks market is still brisk and active.

If you’re thinking of buying, there’s a good deal of inventory to choose from. If you’re looking to sell, now’s a good time to enter the market as well—September, October, and November traditionally have a high number of homes going under contract.

On a related note, if you’re interested in volunteering to help with the post-Dorian cleanup effort or you’d like to donate money to this cause, the Outer Banks Community Foundation and the Buxton United Methodist Men are two organizations I recommend reaching out to. They’ve each done a phenomenal job raising money and helping local families in need.

If you’d like to know more about volunteering for these two organizations or making a donation, just reply to this email. If you have any more questions about our Outer Banks market, don’t hesitate to reach out to me as well. I’d love to help you.

Can Buyers and Sellers Take Advantage of Our Current Market?

According to the latest numbers, it’s a great time to buy or sell in the Outer Banks market.

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Where does our Outer Banks market stand as we near the end of spring?

In short, things are still moving briskly—the number of vacationers moving to our area is rising every day, which makes it an opportune time to buy or sell. 

How do the numbers from last April compare to the numbers from April 2018?

First off, inventory is up 11% in unit sales—for residential sales, it’s up 9%. Lot sales, meanwhile, are up 3%, and the median sales price also increased slightly.

The number of vacationers moving to our area is rising every day, which makes it an opportune time to buy or sell.

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In Hatteras Island and the southern beaches of the Outer Banks, the number of sales rose 10%, and the median sales price rose from $305,000 to $342,000. This is evidence of a stronger market, and we’re gaining some appreciation we lost during the economic downturn of 2007 to 2014. 

If you’d like to know more about our market or you’re thinking of buying or selling soon, don’t hesitate to give me a call or email me. I’d love to help you.

The Past, Present, and Future of Our Outer Banks Area Market

The latest data from our market is in, and we’ll be covering everything you need to know today.

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We’ve entered into yet another new year, which makes now the perfect time to discuss the state of our market. I know that looking at data isn’t always the most thrilling thing, but our team is committed to bringing you the most up-to-date information possible. Better yet, we’ve condensed the latest market trends down for you into a simple, straightforward update.

Cited below for your convenience are timestamps that will direct you to various points in the video. Feel free to watch the full message or use these timestamps to browse specific topics at your leisure:

1:34 - How has market activity changed year over year?

2:40 - What does the change in activity mean for our market?

3:47 - Why is it important to review these statistics?

4:11 - How did statistics concerning vacant lots change year over year?

4:36 - How prevalent were distressed sales in 2018?

4:59 - How prevalent were new construction sales in 2018?

5:18 - How to contact us to ask questions, get more information, or request your own copy of this data 

A Deeper Look at Our Latest Market Update

I answered some questions about what has been affecting our market in this upate.

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I’ve received a lot of questions about what’s causing changes in our market, so I’ve done some research for you to find out what’s happening. I went over our latest numbers in this video, but here are some additional factors that you should pay attention to:

1. Storms. We’ve had back-to-back storms, and most buyers don’t want to search for homes during bad weather. This change in our traffic has led to fewer sales.

There’s been a 17% decrease in under-contract homes in September and it’s continued to drop.

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2. Rising interest rates. Increases in interest rates negatively affect the purchasing power of buyers.

3. High prices. Months ago, the market was fantastic and indicating that prices would be increasing in the future. However, we may have overpriced our homes to a point where buyers are waiting. There’s been a 17% decrease in under-contract homes in September, and it’s continued to drop in October.

If you’re looking to buy or sell a home, have any questions, or need further information, email me anytime at John@ColonyRealtyCorp.com. I look forward to hearing from you.

Fall Housing Market Update for the Outer Banks of North Carolina

While the local housing market is fine for now, things may get even better soon.

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How is this fall looking for potential homebuyers and sellers? Let’s take a look.

Firstly, the market seems to be stalling out a bit—something that’s happening not just here, but throughout the country. Interest rate rises and a few big storms factor into this, but we’re hoping for a market increase in November, where numbers have historically been high.

If you’re thinking of buying, it’s still a good time. We haven’t rebounded to pre-recession prices, but there is at least some stability for home sellers and buyers.

In the video, I mention an MLS reporting for the Outer Banks area; if you'd like that information, click here.

Here are the numbers I’ve found:

Under-contract listings are down by 17%, and the absorption rate (weeks it takes to sell current inventory at the present rate of sales) is up by 36%. Right now, we have about eight months’ worth of inventory.

We haven’t rebounded to pre-recession prices, but there is at least some stability for home sellers and buyers.

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We specialize in helping you buy or sell property and ensuring you have the guidance needed for making an informed and educated decision. Contact us at any time and we’ll be more than happy to lend you our expertise. We look forward to hearing from you.

How Does Our Mid-Year 2018 Market Compare to Where We Were Last Year?

Right now, our market is roughly on par with where we were at during this time last year. This means now is a great time to sell.

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According to the latest MLS statistics, our Outer Banks market is roughly on par with where we were in 2017. Our team’s sales are ahead of where they were in 2017, but I’ll show you some of the year-over-year numbers from the month of July for Kill Devil Hills and Hatteras Island to give you a better understanding of where things stand.

In Kill Devil Hills, the median price rose 3% since July 2017 to $284,400. The number of units sold also rose from 15 to 24.

In Hatteras Island, the situation is slightly different. What’s interesting about Hatteras Island is that although the level of activity is strong, the median price has not changed—between July 2017 and July 2018, it stayed at $305,000. The number of units sold rose from 21 to 26, which is a change compared to what happened year-over-year during the month of June, when it dropped from 33 to 24.

What does this mean for buyers and sellers?

There hasn’t been a better time to sell in the last five years.

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If you’re considering buying on Hatteras Island, there are plenty of great listings available. On the other hand, if you’re thinking of buying in Kill Devil Hills, Nags Head, or the west side of Kitty Hawk, you need to be ready to act much more quickly if you see a home that’s priced to sell. It’s a brisk market in those areas, so chances are there will be other offers for those kinds of homes.

If you’re a seller, there hasn’t been a better time to sell in the last five years. We’re getting into the fall season, which is usually our most active in terms of sales. If you give me a call, I can provide you with a comparative market analysis so you can decide whether right now really is the best time for you to sell.

In any case, I hope you’re enjoying yourself as summer comes to an end. If you’d like to take a look at the full MLS market report yourself, just send me an email and I’d be happy to email you back a copy.

As always, if you have any other real estate needs, don’t hesitate to reach out to me. I’d be happy to help you.

Your Outer Banks Real Estate Market Update

What’s happening in the Outer Banks real estate market? I’ll go over everything you need to know about inventory levels, home values, and interest rates today.

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Today, I’m filming on the hilltops just outside the Maritime Forest to bring you the Outer Banks real estate market update. 

All real estate estate is local. The market in the upper beaches north of Oregon Bridge are streaming along very nicely and prices are increasing very well. 

Below Oregon Bridge, we’re seeing a bit of a seesaw effect in the real estate market. We have seen good buyer activity and good seller activity. Right now, the market is leaning towards the sellers. As of November 30, the median price point has increased by 9% so far this year, so the lower beaches are teetering towards a seller’s market. 

How are the inventory levels? Inventory is nowhere near as high as it was during the recession, and hopefully we won’t see those kind of inventory levels again anytime soon. Right now, inventory is fairly stable, and we have returned to a normal market. 

In the southern beaches, the average days on market is 250, while homes in the upper beaches sell in about 45 to 60 days on average. 

If you’re watching the national news, you’re probably thinking, “What? Why is that so different? I hear that you can sell a house in three weeks!” 

That may be true in a place where you live and work. However, 98% of the folks we talk to are spending discretionary income on a second home or rental property. That is our market. If a home is priced right and has a 10 to 12+ rental return on purchase price, then that property may be under contract in three weeks. Realistically, though, those in the southern beaches can expect to spend 277 days on market, while sellers in the upper beaches should expect 60 to 62 days on market.  

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Most of the people in our market are buying a second home or rental property.

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How do our inventory levels affect home values? As I mentioned, we are seeing an increase in the median sales price. In Cape Hatteras, the median sales price increased by 9%, while in the upper beaches they’ve increased by 12% to 14%. That number is changing daily because the market activity up there is so great. 

Overall, our market is doing very well.  Lower inventory and increased buyer activity increased values in our overall market.  We should see double-digit price increases across the board this year. Once we calculate the numbers from November and December, we should see a 10% to 12% price increase.

What do interest rates look like? Rates are still reasonable. People don’t want to pay 5% or 6% because interest rates used to be as low as 3%. However, when I got started in this market 20 years ago, buyers got 17% to 18%! A 5% interest rate is a really good number. If you are buying an investment property, you may be looking at a 5.25% to 5.5% interest rate. If you are buying a second home, rates will be around 4.5% to 5%. 

What does all of this mean for your? 

If you are in the market to buy a home, there are some great opportunities out there. If you plan on selling, values are coming up and you should be able to sell in a reasonable time frame. 

If you have any other questions, just give me a call or send me an email. I would be happy to help you!