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