Visa Spending Report Suggests Large Increase in Travel Spending

Posted on April 28, 2011 by Gordon Jones

In another sign that global tourism is rebounding from the recession, a report released Monday shows a sharp increase in travel spending by Visa card holders. Last year Visa card holders traveling abroad spent 6% more than last year at $31 billion dollars. Interestingly foreign card holders traveling to the USA increased spending 18% from $29 billion last year.

“Despite economic uncertainties, the United States continues to be a major contributor to the global tourism economy, both as a destination of choice and as a critical source of tourism for many countries,” says William Sheedy, Visa’s group president for the Americas.

U.S card holders spent $3.5 billion for Canada travel, making it the most popular foreign destination for Americans, followed by Mexico and Britain. Looks like Canadians returned the favor spending $9.2 billion for travel in the U.S- a larger amount than card holders of any other country.

The most popular U.S. destinations for foreign Visa card holders were Florida, New York, California, Texas and Nevada. Spending by them increased more than 15% in each state.

Foreign Visa card holders spent more last year in 48 of 50 states. States with the biggest percentage growth last year were North Dakota, 39%; Tennessee, 33%; Utah, 27%; and Wisconsin, 26%.

We hope to continue to see increases in the United States tourism industry especially here in our home state. With recent reports of 9% increases in visitor spending in North Carolina we are confident that a real estate market recovery is also beginning making it a perfect time to buy a vacation home here on the Outer Banks.

Outer Banks Real Estate Market Report – Q1 2011

Posted on April 20, 2011 by Gordon Jones

Outer Banks Real Estate Market Report – Q1 2011

Summary – It would be an understatement to say that March was a good month for sales because March was, in fact, a fabulous month. March 2011 sales are at their highest levels since March 2006 and sales are 34% higher when compared to March 2010. It should also be noted that sales on Hatteras Island have shown a 58% increase over March 2010 sales. The number of listings placed in an under contract status continues to rise with sales being up 20% from March 2010. The specifics are detailed below:

: Outer Banks Real Estate Market Report Q1 2011 – Page 1

: Outer Banks Real Estate Market Report Q1 2011 – Page 2

: Outer Banks Real Estate Market Report Q1 2011 – Page 3

: Outer Banks Real Estate Market Report Q1 2011 – Page 4

Outer Banks: Developer Pushes Plan for Commercial Zoning in Carova

Posted on April 20, 2011 by Gordon Jones

Outer Banks - Carova Map

The Virginia Pilot reports that a longtime Outer Banks developer is making another attempt to gain approval to get nearly 26 acres rezoned for business in the Swan Beach community. This is the developer’s third time presenting this request, and he will be going before county commissioners on May 16^th.

There is some contention about whether the area should be considered zoned for business or residential use.

The tract of land in Swan Beach was set aside for commercial use on an original plat dated Sept. 2, 1969, and signed by the chairman of the county’s Board of Commissioners, the register of deeds and the clerk to the board. The four-wheel-drive area was then zoned residential in the 1970s, and some believe that takes precedence over the original plats.

In addition, the area falls under the federal Coastal Barrier Resources Act, which discourages development, and it also falls under the county’s land-use plan, which limits business growth.

Outer Banks residents have consistently been opposed to commercial building in the area, convinced that these developments would take away from the natural pristine environment. To complicate things further, wild horses roam in preserved tracts such as the Currituck National Wildlife Refuge.

Will the developers continue to battle the county for approval? Should there be commercial space where the wild horses run free?

What’s your opinion?

Is Dare County a “Ghost Town”?

Posted on April 14, 2011 by Gordon Jones

Ghost of Blackbeard

Is Dare County really a “ghost town”? Yahoo Finance seems to think so, but I’m not sure I agree with their assessment.

Yahoo Finance recently ran an article about American Ghost Towns of the 21st Century, and they included Dare County at #6 on their top 10 list. Sure, the Ghost of Blackbeard lives here, but a ghost town?!…I beg to differ.

Here’s what Yahoo Finance had to say about Dare County:

6. Dare County, N.C.

Number of homes: 33,492
Vacancy rate: 57%
Population: 95,828

Dare County includes the northern-most parts of North Carolina’s Outer Banks. The situation in the vacation area is so severe that the “Outer Banks Voice” recently wrote, “If Dare County Manager Bobby Outten was intending to sound an alarm by suggesting that the EMS helicopter and school nurses were expendable in the next budget, he probably succeeded.” His comments are unlikely to be terribly different from those of other executives of counties on the list. Vacant homes and homes which lose double-digit amounts of their value each year irreparably undermine the tax base. And, as services fall, fewer potential homeowners will consider investing in the area.

My first point of contention is that they don’t understand the location of Dare County. They mention that it includes the “northern-most parts of North Carolina’s Outer Banks.” This is clearly an error. The northern-most parts of the OBX belong to Currituck County. This could be considered a minor error, but to me it calls into question their research as a whole.

But the bigger issue I have is that despite the fact that they mention that Dare County encompasses the Outer Banks, they don’t seem to understand the relevance of this fact. The Outer Banks is a tourist destination with a large amount of vacation rental and second homes. Yes, there are a large amount of vacant homes on the OBX, but that is because they are not primary residences. We should expect vacation homes to be vacant for a large percentage of the year.

The article seems to argue that the economic/housing downturn has hit Dare County harder than other areas, and as a result, home values are falling, services are falling, and fewer buyers are interested in the area. This seems like a big jump in reasoning. Yes, the housing downturn has affected the Outer Banks (like every other US market), but I would argue that as one of the strongest vacation rental home markets, the Outer Banks is more insulated from the downturn than most areas. We’ve mentioned a few articles on this blog that indicate that the vacation home/2^nd home real estate market is increasing in strength; here are a couple examples:

The article mentions, “Some of the affected regions are tourist destinations, but much of that traffic has disappeared as the recession has caused people to sell or desert vacation homes and delay trips for leisure. This makes these areas particularly desolate when tourists are not around. The future of these areas is grim.”

Wow, quite an alarmist perspective. The Outer Banks has always been quiet in the offseason. The past few years have not been more quiet than usual, and definitely not “grim.” And as for in season, the OBX is gaining strength, not losing it.

As an industry, vacation rentals are making large gains in the travel market, and 2011 is starting very strong for OBX vacation rental homes with significant improvements over 2010…and 2010 was a strong year. We’ve mentioned a few articles that indicate the increasing strength of the vacation rental industry, and here are a couple examples:

This does not indicate a declining real estate market to me, and especially not a “ghost town.” And the March 2011 MLS stats seem to agree with my perspective.

Yes, Dare County has budget issues (like most US cities/states right now), and yes, unemployment is high (like the entire US), but this Yahoo Finance article strikes me as inaccurate. Dare County has a large amount of absentee owners and as a result, vacant homes during a large part of the year, but vacant homes in a vacation market do not necessarily indicate a “ghost town.” Yahoo Finance needs to reach past the statistics to understand the market as a whole. I would invite Yahoo Finance to visit the OBX July 4^thweekend and tell us it’s a ghost town.

Outer Banks Real Estate Market – March Update

Posted on April 13, 2011 by Gordon Jones

The following summary is from the Outer Banks Association of Realtors (OBAR) “Monthly Statistical Report.” March was definitely a strong month for the OBX real estate market.

Sales

o Residential – Up 14% from March 2010 (129 units vs 113 units)

o Land – Up 200% from March 2010 (36 units vs 12 units)

o Commercial – Up 50% from March 2010 (1unit vs 2 units)

Under Contract

o Residential – Up 11% from March 2010 (163 units vs 147 units)

o Land – Up 94% from March 2010 (33 units vs 17 units)

o Commercial – Up 200% from March 2010 (3 units vs 1 unit)

Vacation Home Market on the Rebound

Posted on March 25, 2011 by Gordon Jones

On the Rise

Here’s some good news for the real estate market…especially vacation destinations like the Outer Banks. Similar to a previous post we made commenting on a Wall St. Journal article, a recent market study by a real estate marketing firms shows growing consumer confidence in the second – or vacation – home market.

Over the past couple years most of the movement in the vacation home market has come from investors purchasing homes at a discount, often foreclosures and bank owned properties, but times may be changing. Reports are indicating a year-over-year increase of 800 percent of home-buyers interested in the purchase of a vacation home.

This good news comes from the third annual Cotton Report, which reports a polling of more than 800 participants on housing preferences, motivating factors, pricing levels and timelines for purchase. It included participants from 39 states, Canada, Europe and Latin America.

This trend is further supported by an increase in the number of buyers describing their transition as “a geographic relocation.”

With visitor spending in North Carolina rising over 9%, this is a great time to invest in a vacation home here in the Outer Banks.

Coldwell Banker Seaside Realty would love to help you find your dream vacation home. Please let us know if we can help with your search.

First “Green” Home on the Outer Banks

Posted on March 17, 2011 by Gordon Jones

First Outer Banks LEED-certified Dwelling

The essence of the Outer Banks is contained in its pristine, natural setting, and the goal of every OBX enthusiast is to keep the Outer Banks that way. Unfortunately, development does not always coincide with this goal. But there are an increasing about of building efforts that are making great strides toward working with nature rather than against it.

The Outer Banks is a relatively small community, and we can be behind the times a bit, but a recent OBX building project made a huge leap towards the forefront of “green” building efforts on the Outer Banks. The first “green” home on the Outer Banks… literally and figuratively.

The Virginia Pilot recently reported that this three-bedroom, two and a half-bath home in Southern Shores is setting the stage for earth-friendly building on the Outer Banks as the first and only LEED-certified dwelling.

Some of the “green” highlights include:

Strategic surface-water management and rain-water harvesting systems passively direct water away from the dwelling to various purposeful reservoirs. Including, a French drain, rain garden, landscaped berm and 1,500-gallon holding tank to collect water for irrigation.
Landscaping includes drought-tolerant native plants and a small grove of American hollies.
The home is heated and cooled geothermally, and lit easily by the sun through generous-sized low-E4 windows, which mitigate summer heat infiltration.
High-efficiency appliances, lighting and plumbing fixtures.
Well-sealed and double-insulated framing between 6-inch-thick walls.
A whole-house water filter and radiant-barrier roof sheathing.
Low-volatile organic compound, or VOC, paints, coatings, adhesives and carpets, as well as a central vacuum system and fresh air filtration/ventilation system

The homes estimated monthly energy-related cost to operate is $100. The Common Sense Green House is listed for $655,000. The builder explains “the whole point of green building is while we use less energy, water and materials, the quality of life is as good, if not better” than what we are accustomed to.

It’s great to see “green” building starting on the Outer Banks…and just in time for St. Patty’s Day!

Vacation Rental Market Growing 4 Times Faster than the U.S Economy

Posted on March 4, 2011 by Gordon Jones

Outer Banks Vacation Rental Home

Vacation Home Rentals recently named the Outer Banks one of the top growth markets for vacation rentals in the United States. Studies show that the vacation rental market is expected to grow 13.1% in 2011, more than twice the rate of the travel market and four times faster than the U.S economy. About 85% of vacation rental property owners expect 2011 to be as good as, or better than 2010. The OBX is projected to have a 20% increase from last year alone!

Vacation rental property owners believe this growth may be attributed to the fact that vacationers are looking for small, reasonable destinations they can drive to, rather than fly.

With this news coming from one of the most visited vacation rental sites in North America, there is a lot to look forward to this year. Whether interested in buying a potential vacation home or searching for a weekend getaway Coldwell Banker Seaside Realty and Seaside Vacations can help you find your own beach oasis.

New Theme Parks in the Corolla?

Posted on March 3, 2011 by Gordon Jones

Outer Banks - Whalehead Club

The Outer Banks has always been known for its resistance to a true tourist destination, opposing anything similar to a Myrtle Beach feel. Nothing against Myrtle, but the OBX has always made it a priority to be a relaxing destination where everyone feels like a local and is here to appreciate the beach and other natural elements of the area.

The Virginia Pilot is reporting that Corolla residents recently opposed two proposed new fun parks and expansion at the Whalehead Club in Corolla, NC, including two new miniature golf courses and two amphitheaters directly across from each other.

Developer Rick Willis seeks a permit to build an amphitheater, a miniature golf course, a zip line and retail shops on 6.9 acres next to N.C. 12 across from the Whalehead Club.

For the second month in a row the county planning board has tabled its recommendation for the park , following new scaled down plans from developers.

In a separate fun park project, Israel Golasa of G. Holdings proposes to build a miniature golf course and a bumper car ride on two acres adjacent to TimBuck II shopping area.

This is another scaled-down version of an earlier 3.3-acre project proposed in 2009 that would have also included a go-cart track and an arcade. Previous proposals have been opposed by local residents.

Meanwhile, the historic Whalehead Club has asked the county for permits and funding to expand activities there over the next 10 to 15 years, including projects such as reconstructing a caretaker’s house that once sat on the property, a vendors area and an amphitheater on an open field currently being used as a wastewater spray field that would have to be relocated.

The citizens group opposing these developments sees them as out of character for the area. Noting they would create noisy distractions for residents and visitors.

“We’ve got two amphitheaters looking at each other,” said Bob Schultz, a board member with the Corolla Civic Association. “For some reason all these developers think people are looking for the Myrtle Beach atmosphere. That’s not why they come to Corolla.”

But the developers disagree.

“These residents reflect a small percentage of people who own property on the Currituck Outer Banks,” one said, adding that these attractions will add value for owners who chose to rent their homes for the season.

Corolla residents have often opposed new commercial developments over the years. Citizen committees influencing county laws have led to limitations on signs, lighting, noise and gaudy appearances seen at other resorts.

As for the Whalehead Club, which is owned and financed by the county and draws about 17,000 visitors a year, the hope is the proposed additions will bring more locals and visitors to the area and proposed the new caretaker’s house would be used for weddings, classrooms and meeting space.

The Board of Commissioners will have to approve all three projects, but what do you think?

Will Real Estate Turn Around in 2011?

Posted on March 2, 2011 by Gordon Jones

Is relief finally on the way in 2011? The Wall St. Journal recently published an article indicating that 2011 could be the year real estate turns around. It’s hard to be sure, but there may be some good news in 2011 about the nation’s struggling housing market…or at least, the bad news could come to an end.

Either way, it will be welcome relief for current homeowners as well as for potential real-estate investors. Reasons to be optimistic have been sadly lacking since the housing bubble burst.

Last week we learned from the widely watched S&P/Case-Shiller that the home-price index fell 1% in December; its fifth straight decline. But what’s new? In this case, what goes down must come up. If forecasters are correct it might make sense to jump into real estate. The trick is avoiding getting burned again, and it doesn’t necessarily mean owning a home.

Let’s recap a few economic signs that seem to support the belief that a bottom is close.

Houses Are a Good Deal

Housing is the most affordable it has been in decades – analysts consider not only home prices but average family incomes. Nationally, the cost of a house is the equivalent of about 19 months of total pay, the lowest level in 35 years.

“Pricing is down so much in some markets that when you analyze renting versus owning it makes much more sense to own,” says Michael Larson, a real-estate analyst at Weiss Research in Jupiter, Fla.

In the end, it will be affordability that will drive people to buy homes. But what about timing?

Consider this: In some markets, home prices have fallen by half or more since 2006. Even if prices fall another 5%, it’s a small margin in the grand scheme.

Investors Stepping Up

One of the best indicators that the market is nearing a bottom is when investors are buying up houses and condos, in some instances paying entirely in cash.

Take Miami again. Last year, more than half of all transactions were made entirely in cash, according to a recent report in The Wall Street Journal. That compares with 13% of deals in the last quarter of 2006, the height of the bubble. Similarly, in Phoenix 42% of sales in 2010 went to all-cash buyers, up threefold since 2008. It seems like these investors are betting on a rebound in the near future.

Plan to Stay Put

Buy and hold. While the good news is that the worst of the housing crash might be over, the bad news is that the fast gains of the glory days of 2005 and 2006 won’t be back any time soon. To avoid heavy losses and driving down neighborhood values, plan to own for the long-term…10+ years is a good bet.

Below is a graph from AOL Real Estate showing home prices in the Kitty Hawk, NC real estate market. With Kitty Hawk home prices being sold far above state and national averages, the OBX may be more fortunate than we assume.

The OBX – a strong real estate market getting stronger in 2011?! The magic 8-ball seems to be pointing to yes.

AOL Real Estate - Kitty Hawk - 3.2.11

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News about real estate values in the Outer Banks area

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