Four Seasons Realty

Chamber of Commerce just published Year to Date Economic Indicators  for Jan thru Jun 2008 GREAT NEWS!
 
Occupancy receipts were up. Dare County was up 4.84% and Currituck Beaches up 8.83%. Renters still come despite high gas prices. Strong rental income for anyone realizing that NOW is the time to invest. Prices have never been better and rates are still very attractive. Call us today for a list of the best opportunities.

Outer Banks named one of the five most affordable
U.S. travel destinations by USA Today

In the Travel Deals section of USAToday.com on July 18^th an article by Kate Hamman of SmarterTravel.com emphasized that, while “Europe and far-flung destinations seem impossible to afford, you can still find a world-class destination in your own backyard.”  The Outer Banks of North Carolina was named as one of the top five most affordable travel destinations -  “classic stops you won’t find anywhere else in the world. Plus, you won’t have to spend a fortune to experience them in style.”

There has been recent updated information on the Mid-Currituck County Bridge project, please click on this link http://www.ncturnpike.org/projects/Mid_Currituck/
This also has links to all the documents filed to date, timelines and contact information.  There is also a project hotline at (800) 961-5465.

Last year will be remembered as a great year to purchase property on the Outer Banks.  This article will describe some of the indicators that favored the buyer in the overall market. And, how these indicators point towards another great year for buying property on the Outer Banks.

Number of Sales

The Outer Banks Association of Realtors Multiple Listing Service has its highest number of sales ever in 2004.  There were almost 3800 sales that year.  In 2007 the total number of sales through the MLS dwindled to just a little over 1500.  The local MLS has not seen sales this low since 1995.  When demand is this low, sellers should consider every offer precious.

Absorption Rate

This is the amount of time it would take to sell the entire unsold inventory of properties with the current level of demand.  For example, if there were 50 properties on the market and 100 were sold in a year then the absorption rate would be six months.  With over 4000 properties on the market the current absorption rate is over two and a half years.  According to many experts, a six month absorption rate is considered a normal market in most suburban areas.   Buyers and sellers should pay close attention to this indicator because it will be the first to show a changing market.

Rental Income

Gross rental incomes on vacation homes were up significantly in 2007 and this trend is likely to continue.  Quite a number of our listings have already surpassed their 2007 rental incomes for the 2008 season.

Cheap Loans

Interest rates are approaching record low levels again.  As of this writing, rates were back below 6%.  Interest rates stayed much higher in 2007.  A 1% interest rate decrease represents almost $50 in savings per month on a $100,000 loan amortized over 30 years.  Buyers may also benefit from the currently congress approved economic stimulus bill.  Keep an eye on jumbo loans to see if the maximum conventional loan amount is increased.  If this stays in the economic stimulus package then the jumbo rates should go down considerably.

Lower Prices

Sales Prices have come down significantly.  For example, a lot just a few off the ocean in Southern Shores sold for $707,500 in 2005.  A fairly similar property in the same neighborhood, sold for $605,000 in early January 2008.  Each market segment has suffered different amounts of depreciation but it is safe to say that prices in all areas have come down substantially.  With the large supply of motivated sellers, increasing rental incomes, cheap loans and lower sales prices, buyers will be surprised how far their dollars will go.

What’s in store for 2008?

Of course no one knows for sure but these indicators point towards a continued buyer’s market.  It also appears that other market forces will continue to improve affordability for buyers.