In our blog last week we talked about the improvements we’re seeing in the Outer Banks real estate market. Those improvements are very real and and the change in the outlook for 2013 over the past few years is great news.
One thing that hasn’t changed, though–this is still very much a buyer’s market.
Yes, inventories are edging down, but they are edging down, not plummeting. Yes, the number of properties being sold is up significantly, but the average price of a home ($420,245) is right around 75% of the average price in 2006 ($556,090). And, that average price has shown almost no change in the past five years.
More evidence that it’s a buyer’s market? The number of Outer Banks homes sold last year went up significantly, but the the average days on the market were a very high 230–a clear indication that buyers are shopping carefully in an inventory rich market.
So what does all this mean?
Well, if you’re a seller, and you’re thinking that you will wait this out to get your price, you’re going to have a very long wait. No one has a crystal ball, and maybe the world will turn upside down tomorrow and the real estate market will return to the insanity of ten years ago. Or, maybe someone will see your property, fall in love with it and meet your price. But if those are scenarios you are banking on . . . our experience tells us they’re not going to happen.
If you are serious about selling your property, price it to sell. Here at Brindley Beach Vacations, we have the best agents and brokers on the Outer Banks. We know this market and we know what homes comparable to your home are selling for.
Buyers–yes this is a buyer’s market, but all the indications are the market has bottomed out. If you are waiting for the perfect moment to get into the market–this is about as good as it gets.
The inventory is excellent. Just as importantly, property prices have remained very reasonable and the Outer Banks rental market is forecast to continue to grow. For an investor who is purchasing a rental property, there is an opportunity for a very favorable return on investment–we are seeing ROI up to 10% on some properties.
That statement comes with a lot of caveats, of course. There are so many variables involved in property management that no one can guarantee that robust of a return. However, the returns we are consistently seeing are as strong as anything we have witnessed for years.
Although the Outer Banks is one marketplace sharing a common name, the fact is, there are innumerable submarkets within it, each with its own unique characteristics. That’s where our knowledge becomes an invaluable tool in selling or buying a property.
If the time is right for you to either buy or sell a property, call us (877.642.3224), or send us an email (firstname.lastname@example.org), and let’s get some property moving.