Choosing Your Buying or Selling Season

By Lisa Loy

The change of seasons is evident in nature––we see it with our eyes, we feel it on our skin. But have you ever considered the annual ebb and flow in the real estate market? When is the best time of year to buy, build, rent or sell?

The buzz on the beach all year has been that now is the time to buy, and of course, that’s true. Experienced investors shop like experienced housewives. They buy when the products they want go on sale. Housewives are driven by value. They’ll buy 50 lbs. of shrimp in summer, when they’re in season, abundant and consequently less expensive, then measure them out in freezer bags to enjoy all year.

Why is that so hard to do with real estate, or stocks and bonds for that matter? In these markets, investors flock to buy when prices are rising and sell when prices are dropping. Real estate activity during the past decade was all about price, and it was driving speedily uphill in a bandwagon. It had to overheat at some point. When prices began to crest, sellers climbed aboard the bandwagon causing a glut of available homes and prices to drop.

To a lesser degree, there are fluctuations in the real estate market that occur every year. For example, the slowest month of the year for real estate sales nationwide, traditionally, occurs during the month of December. It’s a whirlwind month––folks are too busy with parties, shopping, and caroling to add to the revelry by scheduling a closing during the holiday season. Slow sales in December may also be influenced by the “close after the first of the year” strategy some tax conscious sellers employ.

In a resort area where vacation rentals come into play, one might think sellers would be more apt to negotiate in the fall when faced with the lower occupancy rate associated with winter. But there’s a yang for every cold, dark yin, and it’s called rental deposits. Vacation homeowners receive income from their property managers monthly. Deposits are being tendered all winter long as bookings for summer occur well in advance.

The fall is not only a great time to look at real estate, it’s a beautiful time of year to experience the Outer Banks. It’s not always easy to go house hunting in summer when vacationing families occupy every house, but in the fall, touring prospective properties is a breeze. The ocean is still warm after absorbing the summer’s heat, and surfers and anglers are enjoying the secret season.

Moreover, the Outer Banks comes alive in the fall. Locals, after working hard all summer, have more time to enjoy themselves. For someone considering a move to the beach, the fall is an opportune time of year to get to know us. After the crowds of summer go back home, the beach reclaims its small town atmosphere. You’ll find plenty of opportunities to meet the locals at events such as the Dare County Arts Council’s Artrageous Art Extravaganza & Auction occurring at Rec. Park in Kill Devil Hills on October 6th. And although the OBX Marathon in November draws thousands of competitors from across the country, it is also a huge community event.

If you’re planning to retire here, drop by the county’s senior centers, the Baum Center in Kill Devil Hills and the Fessenden Center on Hatteras Island. These facilities look and feel like country clubs with an active, social population. There’s a tap dancing group at the Baum Center and a basketball court at the Fessenden. Attending the Senior Games, occurring annually in the spring, would also be a good way to visit and meet the area’s most robust retirees.

For families with school age kids to consider, a visit to any one of Dare County schools is time well spent. Our schools have some of the highest rankings in the state, and a Friday night football game, as in any small town, is a great way to meet the locals.

Meeting people, when you are here to look at available property, who are year ‘round residents will help you learn whether or not the Outer Banks as a community is a good fit for you and your family.

Off-season, there’s time to think, to plan, and remember why you came here. Buy a rental home in the winter and you’ll experience the luxury of time to enjoy and personalize your new home before a busy summer. You won’t be stuck in traffic on Saturdays and there isn’t a waiting line at every restaurant.

If you wish to build a new home, the quiet months in winter are also an ideal time to work out your plans with a builder. In the spring, contractors are often rushing to fulfill their contracts and complete their homes before the summer rental season is in swing. If you are not interested in rental income, you may do well to schedule construction of your new home during the summer and fall. Like most artisans, a builder will have more time to do his best work when he’s not under a tight deadline.

In winter you can walk land more comfortably with not a thought of pesky flies and without fear of surprising a snake. But nature is present. It’s not unusual at all to see deer taking a their daily stroll through a yard or find a little fox peering at you from beneath a wax myrtle. Without the hot haze of summer, the atmosphere can be wonderfully clear, bringing sunsets with color vivid enough to rival the gold and orange leaves of a New England maple. When the swans finally arrive and float en masse on the sound just offshore, the season is complete.

Timing your closing on the purchase of a vacation rental home in spring is akin to the story of the “loaves and the fishes.” The fishing season is in high gear with an abundance of tuna, dolphin and cobia, and the bread, well, that’ll be on your HUD Settlement Statement in the form of a hefty pro-rata rental income credit.

Buying any home in the spring, as would be expected, lessens the likelihood of negotiation. After all, the spring is especially beautiful and is the advent of summer––the epoch of the Outer Banks experience.

For most of us that live here, the investment aspect of homeownership is a factor. After a few seasons go by though, you’ll probably find out what we already know. Price, quality, and growth are all important, or so we believe at first, but none of it outweighs the personal value we reap when we embrace the Outer Banks lifestyle. No, not by a long shot