News about real estate values in the Outer Banks area

Hurricane Earl may have chased some tourists away from the Outer Banks last week, but as a whole, this has been a very strong year for OBX tourism. 

The July 2010 Occupancy Tax and Food & Beverage Tax were record setting on the Outer Banks.  Occupancy tax collection from vacation rentals rose 15% in July.

Rental receipts during July 2008 and 2009 dropped from the earlier all time high of $97 million set  in July 2007, but July 2010 occupancy revenues topped out with gross rental receipts just exceeding $101 million, surpassing the previous July 2007 high.   

For the January through July period, that revenue is up 5%.  On a month to month basis, January receipts were up, February was up, March was down, April was down, May was down, and June and July were up.  Though August figures are not yet available, indications are that they increased as well.

The July 2010 Occupancy Tax and Food & Beverage Tax were record setting on the Outer Banks. 

Rental receipts during July 2008 and 2009 dropped from the earlier all time high of $97 million set in July 2007 , but July 2010 occupancy revenues topped out with gross rental receipts just exceeding $101 million, surpassing the previous July 2007 high.

The number of buyers who signed contracts to purchase previously occupied homes increased by 5.2 percent in July from June.

Freddie Mac, the government-run mortgage agency that surveys the market each week, announced that mortgage rates fell again this week…continuing to set record lows. 

The average price of a 30-year mortgage dropped to 4.42% from 4.44%.  This time last year, the mortgage rate was 5.12%, which was low at the time.

Amazingly, you can get a 15-year fixed-rate loan for under 4% — 3.90% this week, which is down from last week’s rate of 3.92%. This time last year, the same loan cost 4.56%.

Wall St. Journal (8.17.10) – Housing starts increased by 1.7%, to a seasonally adjusted annual rate of 546,000, the Commerce Department said Tuesday, more than the 0.2% increase expected by economists. However, the increase was driven by groundbreakings of homes with five or more units, while key single-family housing starts plunged 4.2% and July building permits fell 3.1% to an annual rate of 565,000.

Outer Banks Market Report Q2 2010

Highlights:

Under Contracts Surge

status since 2005. Additionally, the number of listings that are in an Under Contract status is up 42% from June 2009

and 8% from May of this year. Should we be dancing in the streets?

The bright spots include:

*soared – showing a 522% increase in sales (56 units).

*of 2009 and second quarter sales showed a 24% increase over the second quarter of 2009.

*showed a 37% and a 36% increase over their respective quarters in 2009.

Property sales continue to account for 40% of all residential property sales even though they only account for 13% of all active listings.

Home prices rose in May compared with April according to the S&P/Case-Shiller Home Price Index of 20 major housing markets released Tuesday.

Prices were up 1.3% from April, and 4.6% from 12 months earlier.

The Commerce Department announced today that new home sales rebounded in June from the record low in May. 

New home sales increased 23.6% to a seasonally adjusted annual rate of 330,000 last month, up from an downwardly revised 267,000 in May.

This is slightly better than the annual rate of 310,000 economists were expecting.

Mortgage rates fell to a record low for the fourth time in five weeks.   The average rate for 30-year fixed loans this week is 4.56 percent, down from 4.57 last week. That’s the lowest since Freddie Mac began tracking rates in 1971.

Last week, we shared the June real estate statistics for the Outer Banks, but given the positive trends, some further analysis is in order.  For the first 6 months of the year the overall market is the best it’s been in three years in terms of buyer activity and price stabilization.

Here are some additional highlights from the rosy month of stats: 

• On June 22, 2010, the number of listings in an ‘under contract’ status totaled 300 – the highest number of listings in this status since 2005
• Total Sales – The total number of sales (Residential, Land, and Commercial) for the first and second quarters of 2010 showed a 37% and a 36% increase over their respective quarters in 2009.
• Single Family Detached Home Sales – First quarter sales in this category showed a 22% increase from the first quarter of 2009 and second quarter sales showed a 24% increase over the second quarter of 2009.
• Residential Property Sales – Single family home sales rose 17% in June (133 units vs. 114 units in 2009).
• Current Inventory – The inventory of homes for sale at the end of June was 2,283 units, reflecting a 6% decline in inventory from the same time last year (2,439 units).
• Total Outer Banks Realty Sales are at their highest level since May 2007 (166 vs. 171)
• Residential property accounted for 72% of the Outer Banks Realty sales volume in 2006 compared to 89% in 2010.
• Bank owned properties account for 35% of all residential sales. However, bank owned properties are only 13% of the active listings.
• Condo Sales seem to be improving.  First quarter Condo Sales were weak with only 9 units being sold, but, sales in the second quarter soared – with 46 units sold in the second quarter – showing a large increase in sales.

Mortgage rates continue to hover around all-time low’s (4.5% – 5%), and 2010 is shaping up to be a strong rental year.  With prices off their boom highs and stabilizing, the ingredients are shaping up for a great buyer’s market.