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The Outer Banks Real Estate Market Today |
Winter 2008
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Investor sales always slow to a crawl in the summer months because the homes are all rented for the summer season, as soon as September came the investors returned again, albeit in fewer numbers. Prices fell in 2006 and they fell a little after summer 2007, but I don't see listed prices dropping much more these days - I think we are at the bottom of the price reductions- or very close. What is happening is that sellers are accepting lower than listed offers, but they are not taking the very low offers many buyers are offering - there is a limit to what they will sell for because most are in rental programs making good money from May to Sept and rental income has just gotten better and better over the past dozen years. I have been seeing accepted offers of 5-10% below list price, offers below that are just being rejected. Remember - these listed prices have already come down so even paying close to full price still gives you a huge reduction in what they were selling for 2 years ago. Most sellers are not suffering because rental income was strong this year and these owners are not hurting for money anyway, they want to sell but they are only going so low and not below their bottom line and there are not many foreclosures on investment homes. What does the future hold? I have seen 3 cycles of real estate in my 21 years of selling homes and I see 2007 just about like it was here in 1993-4. The prices had peaked in 1990, just like they did here in 2005, and from 1995 to 1999 the prices were steadily rising. Investors are telling me they think we are at the bottom and with interest rates DROPPING they feel they can't go wrong now. Finding an 80%LTV loan at 6% is not hard - even after the subprime market collapsed. I think you will see investors coming in to buy homes and I have already seen many 2nd home buyers jumping in with these lower prices and attractive 30 yr rates. February through spring is always our strongest selling season because the rental incomes start in May and I predict the saavy investors will be out as soon as it warms up here - March and April.
In other words - buy now or very soon.
Tim Moore 3-12-08 Back to the Joe Lamb Sales Page |