OBX Real estate sales today are a mixed bag. There are some good things happening but not all signs point towards a complete recovery. Similar to an ocean tide, the real estate market is cyclical. It’s safe to say we’ve been in an ebb tide since 2006 when real estate sales dropped significantly from the boom years. But things are beginning to turn…
A favorite activity of visitors and locals of the Outer Banks is to go to Oregon Inlet. Sitting out on this little sand spit is an amazing experience. Besides watching an Osprey catch a fish or cooling off in the warm inlet water, you can actually watch the tide turn. At the peak of the outgoing cycle the water is moving out so swiftly the fastest swimmer could not keep up. As the tide gets closer to its lowest point the current slows down and eventually stops. For about 20 minutes it stays completely still. If you arrive at the inlet during that 20 minute time its hard to tell if the tide is getting ready to come in or go out. This is likely where our real estate market is today.
Why is that?
The number of spring sales has been as good as it has been since 2006. First quarter total sales in the Outer Banks Association of Realtors MLS system were up over 16% in the local MLS system compared to the first quarter of 2010. Low prices, extremely low interest rates and record vacation rental income have made purchasing Outer Banks homes much more affordable. The rental income of many vacation rental homes is coming very close to paying for these properties that are selling today. This has rarely happened in over ten years.
However
There are still quite a few bank owned properties that have to be sold. As of this writing, about 40% of the homes that sold this year were distressed properties. Banks and owners of short sales will continue to reduce their asking prices until their property sells. This spring’s distressed sales have negatively affected the values of all other properties here.
We are seeing both good things and bad things happening in the OBX real estate market today. Right now it is hard to tell if the tide is now coming in or the tide is still going out in the current economic cycle. Hopefully soon we’ll see even more signs pointing towards a recovery in Outer Banks real estate sales.
If you have any other questions regarding Outer Banks real estate, feel free to check out our website!
Looking for property in the OBX area to buy. Looking for a 2 family home. near the Outterbanks area.
Hi Jethro,
We’d be happy to help you find 2 family home here. Feel free to contact me to discuss further. Our office toll free number is 866-438-8382.
Jeff
What would be the price of a house for maximum 4 people in the Outer Banks?
At this moment, the least expensive three bedroom house for sale on the Outer Banks is listed for $272,000. It is located in Kill Devil Hills. There are some homes within a half hour drive of the beach for sale for less than $200,000. Please feel free to contact me if there’s anything I can do for you here.
Does anyone have rent to own property near the beach
Hi Debbie,
Thanks for the question. Occasionally we’ll come across an owner who will consider a rent to own sale here on the Outer Banks. However, rarely are they advertised that way. Most times a Realtor will have to ask the listing agent to find out. Sellers who have interest in that type of sale here also almost always require a large non-refundable deposit due when you move in. Those funds go towards your purchase price. Please feel free to contact us if we can help you with anything here.
I am interested in buying an Outer Banks home in the near future to use as a weekly or bi-weekly rental property. I would like to know how this process can occur and what is the minimum and maximum amount of weeks that these homes could be rented out per year?
Hi Charlie,
Thanks for your comment on our web site. Each person’s tax situation is different but for most people you can use it two weeks a year for vacation if you rent it out. There is also the ability to used it during maintenance trips. For example, we have many clients who will come down on a weekend in the off season and do some maintenance on their home. Those weekends count as maintenance trips and are not part of the vacation weeks.
If you do that it’s a good idea to keep your local receipts from the Outer Banks hardware store to prove that you were maintaining the property while here. Also, you want to make sure your property manager designates the time you are there (besides the vacation weeks), as maintenance weeks.
Since each person’s tax situation is different, I recommend talking with your accountant or a financial advisor about this subject.
Thanks for your inquiry. Please feel free to contact me if there’s anything we can do for you here on the beach.