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.

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.

Lowe's Logo

The Outer Banks Voice is reporting today that Lowe’s, the home improvement “mega store,” recently submitted a site plan for a store in Kill Devil Hills.

The plan calls for a 158,000-square-foot store on the “highway” between West 1^st St. and West Landing Drive.  The area is already zoned commercial, so the approval process could be as straight-forward as a site plan approval, but it’s too early to tell.

Overall, the numbers are encouraging and demonstrate a continued trend of positive growth in the Outer Banks real estate market.  Here are a few highlights:

• Foreclosed Outer Banks homes accounted for 32% of home closings
• Homes under $400,000 are the most active segment of the market
• Three months in a row with more than 150 real estate closings
• Four months in a row with more than 100 home closings

County officials have been at work planning for the change in valuation.  Local experts believe that a tax burden could be passed to property owners on the mainland. There is no question that the downturn of the market since 2005 has caused property to be sold under the appraised value. Some local realtors report that some properties are being sold as much as 70 percent of its appraised value. As of right now, the Outer Banks pays about 58 percent of the property taxes in the county.

Could the tax burden shift soon?  If property valuations drop as they have been predicted to, county officials will be faced with a difficult decision about raising taxes to makeup for the shortfall.

Sterling Society Award Winners

KITTY HAWK, NC (May 26, 2010) – The Dobney Garcia Team, the Willey Lilley Team, Dave Hines, Michelle Huffman and Heather Sakers, all sales associates with Coldwell Banker Seaside Realty, have been honored as members of the company’s International Sterling Society.  This distinguished membership was awarded to the TOP 8 percent of the approximately 96,600 sales associates / representatives worldwide in the Coldwell Banker^® system.

The recipients exemplify everything that the International Sterling Society represents,” said Jim Gillespie, president and chief executive officer of Coldwell Banker Real Estate LLC. “Their extensive understanding of the real estate market on the Outer Banks and dedication to their customers truly embodies the ideals of Coldwell Banker.”     

While this was a challenging year for the real estate industry, millions of people continue to buy and sell homes based on their lifestyles and needs. “This was undoubtedly a difficult year in our industry, but people need to remember that real estate is cyclical, and positive signs over recent months signal a tipping point for the residential real estate market,” notes Gillespie.

About Coldwell Banker Seaside Realty

Founded in Kitty Hawk, NC in 1990, Coldwell Banker Seaside Realty has office locations in Kitty Hawk and Nags Head, NC. More than 50 licensed agents provide both residential and commercial buying/selling assistance in Northeastern North Carolina.  

About Coldwell Banker^®

Since 1906, the Coldwell Banker^® organization has been a premier provider of full-service residential and commercial real estate.   Coldwell Banker is the oldest national real estate brand in the United States and today has a network of nearly 97,000 agents working in more than 3,300 offices in 49 countries and territories. The Coldwell Banker brand is known for creating innovative consumer services as recently seen by being the first national real estate brand to augment its web site www.coldwellbanker.com for smart phones, the first to create an iPhone application featuring international listings and the first to fully harness the power of video in real estate listings, news and information through its Coldwell Banker On Location^SM YouTube channel.  The Coldwell Banker system is a leader in specialty markets such as resort, new homes and luxury properties through its Coldwell Banker Previews International^® marketing program.

Corolla Club & Resort

A public hearing was held regarding the new Corolla Club and Resort on Monday.

It seems that supporters of the development view the development as a means to offer new housing opportunities for visitors to the area.  Opposition to the new resort claim that the project dosen’t go with the current atmosphere of the area and seems out of place for Corolla. 

The Builder-developer, SAGA Construction, states that the development will help the area by creating jobs and providing accommodations for vacationers on the Outer Banks. 

During the public hearing, three major issues were addressed:

(1) Is the development compatible with surrounding residential areas?

(2) Should the land be protected because of its unique environmental qualities?

(3) Will Corolla neighborhoods be negatively impacted by the new development?

County Planner Ben Woody stated in the hearing that the development fit the criteria for a special-use permit and fits in with the overall plan for the community.  Before the testimony began, Sumit Gupta, principal owner and developer of SAGA, said the new development was carefully designed and would benefit Currituck County.

It was a hotly contested issue, and testimony and closing statements extended past 1 a.m.  At the end of the lengthy hearing, the commissioners, without comment, unanimously approved the developer’s application for a special use permit with some recommended changes from the planning staff.

The typical vacation home buyer is making a lifestyle choice,” said National Association of Realtors Chief Economist Lawrence Yun in a statement.  He added that “nine out of 10 buyers say they intend to use the property for vacations or as a family retreat.” 

According to the National Association of Realtors, the number of first time home buyers was at a record high.  The median transaction for a vacation home was $169,000 in 2009, up almost $20 thousand over 2008. 

It is also reported that half of the vacation homes purchased were in the south, 21 percent in the west, 17 percent in the midwest and 12 percent in the northeast. 

On the Outer Banks is seeing increased activity for these types of sales as well.  With the tax credits that are in place, mortgage rates at an all time low, and high affordability, owning a vacation home on the Outer Banks is more feasible than ever.

Heather has been with Coldwell Banker Seaside Realty for a number of years and has gained a reputation as a honest person who always keeps her clients’ best interests in mind.  Her biography for nomination reads as follows:

“I strive to bring an honest and caring approach to my real estate career. Taking a huge financial loss myself and seeing family and friends lose everything in this market had a big impact on my attitude and what I considered to be important in life. Sales can be all about making money and getting ahead, but I have a sticker on my laptop from Mark 8:36 that says: ‘How do you benefit if you gain the whole world but lose your own soul in the process?’ It reminds me to treat my clients how I would want to be treated and always put others’ best interests first.” Web site: www.coldwellbankerobx.com

We are all very proud of Heather for this nomination and wish her the best of luck.  You can vote for Heather by clicking the link below…feel free to vote as many times as you wish!

http://tinyurl.com/ydyyke9

Heather Sakers - 30 Under 30