Summer Outer Banks Real Estate Primer

Unless you have lived in a bubble the last few years, you have heard the doom and gloom about the national housing market and the lending crisis. The Outer Banks has not been immune to some of this national trend. However, the Outer Banks market is unique because of our remote location and the fact that a large portion of our sales are vacation rental home sales. Marlene Roberts, a broker at ReMax Ocean Realty, recently stated, “All real estate is local.” This certainly is the case on the Outer Banks where rental income and buyers’ desire to improve their quality of life are key factors in the number of sales that occur here. This article will candidly describe the good and the bad of today’s Outer Banks real estate market.

Recent history shows that the number of buyers purchasing here has become stable. The number of people purchasing property changed dramatically between 2005 and 2006. About half the number of people purchased Outer Banks property in 2006 compared to 2005. Since then the annual number of Outer Banks property purchasers has not significantly changed. MLS statistics show there was just a slight difference in the number of Outer Banks properties sold in 2007 compared to 2006, and the number of sales during first quarter of 2008 is remarkably similar to the two previous first quarters. The typical buyer during this time period is someone who is more concerned about enjoying the Outer Banks lifestyle with family and friends than with making a killer real estate investment. Tom Hranicka, a broker for Outer Beaches Realty, stated, “Our typical buyer is someone who has enjoyed the Outer Banks for years and now is finally ready to own part of the beach.” Statistics point toward a steady number of people becoming ready to take the jump into Outer Banks homeownership.

A key indicator to any real estate market is the relationship between properties for sale and properties closing. This is called the absorption rate. The absorption rate represents the period of time it would take for all the properties currently on the market to be sold with the current level of demand. As demand increases or supply decreases, the absorption time period goes down. In a typical suburban market the rate at which the market favors neither buyers nor sellers is approximately six months. In this resort and vacation rental market, that time is likely closer to a year. Since the beginning of our down turn, our absorption rate has stayed above 30 months for all but a few months. This is one factor that has driven prices lower. When the absorption rate begins to decline, it is likely that the bottom of the market is close at hand.

Since we reached our peak levels of inventory in July of 2006, inventory has remained at levels well above demand throughout the year. The trend every year during this buyer’s market is that inventory grows from its lowest point in January to its highest point in late June or July. It then goes down to its lowest point at the end of the year with many listings expiring at midnight on New Year’s Eve. Sellers realize that the best time to sell is in the spring and summer, and many take their houses off the market after the summer season. May 2008 was the first time since at least 2004 that the inventory actually went down before late June. It’s too early to tell but this may be the first sign that the absorption rate is going down as well. Who knows…we may look back at May of 2008 as being the bottom of the market.

Another factor that has driven prices lower is the amount of foreclosure properties that have sold. This year close to 10% of the properties sold through the local MLS were bank owned. Banks typically lower the asking prices of these properties until they sell. There are still occasional foreclosures occurring, but they do not seem quite as common as last year.

Lower prices can be found on properties throughout the Outer Banks. Even oceanfront property has come down. For example, a nine-year-old oceanfront house on a narrow lot in Nags Head sold for $1,575,000 in 2005. Today there is a house for sale that is almost identical in all ways for just $1,449,000. Hatteras Island has been affected too. Tom Hranicka stated, “Median prices on Hatteras Island have dropped almost 25% since the peak of the market.”

Similar to other investments, purchasing property on the Outer Banks is subject to human behavior patterns. When the market was good, every one was purchasing. Today the most common reason for buyers to wait on a purchase is that they do not want to purchase and have the property worth less in six months or a year. Buyers are waiting for the market to hit bottom before making an investment. Some agents have begun to see buyers bucking this “herd mentality” and deciding to invest now. Greg Roberts, a broker for ReMax Ocean Realty, recently stated, “The buyers we are seeing now are determined to purchase quickly before the market changes.”

If you’ve thought about purchasing Outer Banks property in the past or may want to purchase sometime in the future, it is a good idea to evaluate the conditions of the market prior to jumping in. Buying real estate can be compared to surfing on the Outer Banks. Local surfers watch the weather and check the ocean before diving in. Some of the conditions they look for are offshore winds and a certain size of swells coming from a specific direction. Rarely do conditions get perfect where everything comes together and the surfer gets to ride the perfect wave. But every surfer has a threshold where if certain conditions are present, he or she will go surfing. Each buyer should also evaluate the conditions of the market when considering jumping into the real estate market.

Market conditions today are not perfect but they are pretty darn good. For example, interest rates are still at low levels. Margaret Wells, a Vice President for Bradford Mortgage, recently stated, “Rates are close to historical low levels.” It is unclear what will happen to rates next year. Even just a one percent increase in an interest rate can dramatically affect the affordability of property. The mortgage payment is just about the same for a 30-year $500,000 loan at 7% and a 30-year loan of $554,000 loan at 6%. That is a 10% increase in purchasing power!

There are a few other conditions that point toward a good time to jump into this market. First, today the inventory is still very high. Buyers have a wide variety of choices and should not have to settle for a property that does not come close to meeting their wants and needs. Second, the market has not yet turned in the seller’s favor. This makes sellers more negotiable today than they have been in years. Sellers are privy to the same information as buyers; once it is known that the market has turned, they will be less likely to negotiate. Third, a purchase now allows a new owner to pick up most of this year’s rental income. A home purchased in June or early July allows the new owner to walk into thousands of dollars of instant income on vacation rental homes.

There are other reasons for being bullish about Outer Banks real estate today. Activity is up for many Realtors. Tom Hranicka recently stated, “Both showings and hits on internet real estate sites are up on Hatteras Island.” Unlike the last few years, there have been positive articles posted in the media about Outer Banks real estate. This spring the Wall Street Journal had two articles describing now as a great time to purchase a home on the Outer Banks. Well-priced properties also do not stay on the market long. Mark Massey, a broker for BD& A in Duck, recently stated, “When priced properly, buyers are there to act, and sellers are having success. However, only a small percentage of sellers have their homes offered competitively.” Second homes also still make up a large percentage of the real estate market today. According to the National Association of Realtors, the second home market represented 33% of all sales in 2007. This group is also forecasting the second home market to improve in the future due to the demographics of the country.

Conditions are good to purchase a property on the Outer Banks. Years from now will you be enjoying your property or will you be lamenting the idea that you should have purchased in 2008?

Getting Your Beach Bearings: A Community Compass

By Lisa Loy

The decision to buy property on the Outer Banks should be made with more information than just the lay of the land. We may succumb to the lure of the Outer Banks’ natural land and seascape and embrace the variety of ways we can enjoy the sport and soul of life outdoors. It’s a fact that some buyers have chosen to live or invest here based on little more than the view.

For year ‘round living, our moderate climate, relatively low taxes, great schools, world-class fishing and a score of superb golf courses can tip the scale toward the decision to buy. For vacation home buyers, a rental cash flow analysis offered up by an experienced Realtor can provide all the justification one might need to partake in “the life.” But what else should you know? Within the broad reach of our 100-plus miles of coastline, there are many villages and towns. Which Outer Banks community is right for you? How do you get your bearings when there are features that you can’t see, such as local attitudes on growth and the environment? These attitudes will ultimately shape the future look of the Outer Banks. Will it be green or glitzy? Here, then, in addition to some physical features of note, is a view of another sort, from north to south -- a snapshot of each community.

The financial strength of Dare County, which encompasses the majority of the Outer Banks, is also a key element in the future shape of the Outer Banks lifestyle, and it’s looking good. The $1.3 million dollar surplus in the 2006 fiscal year increased the unreserved, undesignated general fund balance to $22.3 million. This fund helps Dare pay for the costs associated with storms or capital improvements, which can also be funded with land transfer tax revenues. Low debt, low unemployment rates, high property tax collection rates from non-resident property owners and staggering growth in property valuations, now estimated at $16.5 billion, all demonstrate Dare County’s ability to serve Outer Bankers’ needs. It is the 16th fastest growing county in the state.

The majority of the communities covered in this article are located in Dare County, but at either end, due to primary access routes through Dare, the Currituck County beaches and Hyde County’s island of Ocracoke are also considered part of our overall community.

We begin at the northernmost village, beyond the paved roads in Currituck County’s Corolla and above the wildlife sanctuary, in the village of Carova. Accessible by 4-wheel-drive vehicles by way of the beach, this area was subdivided and canals were dug in anticipation of an access roadway from Virginia planned some years ago. But when the Back Bay Wildlife Refuge came into being, those plans were dashed and the subdivisions remained isolated, albeit affordable. Lot sales were a bargain and included owner financing, but building a home that far out of the way back then was a bit of a financing challenge. As a result, the homes there are a hodgepodge of old and new, ramshackle and opulent. Residents no longer push for better access, they are friendly, but they want to enjoy their privacy. They shy away from development, even the mere grading of their main route, Sandfiddler Road, as proposed last January. The effort was dropped due to a petition signed by more than 150 residents who feared that road improvement would spark more development.

Although Carova is geographically just a few miles north of the village of Corolla, it is a world away in appearance and economic development. Corolla is manicured, tourism driven and on a fast track toward self-governance. The future “Corolla, Incorporated” is made up of homes in developments with extensive recreational facilities that attract a steady stream of vacationing families who arrive weekly in Mercedes and Volvos. The year ‘round population is small, but visitors carry big pocket books, and the resulting revenue stream is significant, benefiting the larger agrarian mainland of Currituck County, a catalyst in Corolla’s hopes of township. Most non-resident homeowners take advantage of premium weekly rental income to offset the cost of ownership. For the Currituck beach communities, access to schools is currently a challenge for local families, meaning Corolla is not attracting many new, year ‘round residents with children and won’t until the long anticipated mid-county bridge, connecting the Currituck beach to its mainland, is finally built.

“If a bridge is built, it will be easier for people to live there year ‘round,” Mark Massey, a Broker with BD&A Realty & Construction, Inc. said. The bridge will help lengthen the season for Corolla’s business community because it will be more accessible for day-trippers to the area. He said that a number of people he knows have tried to make a go of living full-time in Corolla but that after a year or so many of them give up and move south to Dare County.

“There are a few large parcels up there that present the possibility that new communities will have some commercial or mixed-use areas,” Massey said. He sees that as a plus for year ‘round growth and, consequently, greater participation in the future look of Corolla. He also noted that sales activity is up right now, not unusual in the spring as buyers enjoy closing in time to receive the upcoming season of rental income. What is encouraging to him is that the overall activity indicates a more level market throughout the year.

In addition to shortening drive time for southbound vacationers to the northern beaches, the proposed mid-county bridge will help ease the travel volume on N.C. Highway 12 through the towns of Duck and Southern Shores.

Like Corolla, the town of Duck is a vacation destination with upscale vacation rental homes in attractive developments, but the year ‘round population is growing due in part to its better proximity to the conveniences of major medical facilities, schools, shops and restaurants. Duck is the northernmost community in Dare County and has made great strides since its incorporation five years ago with its own police department and other services. It has acquired property for a town hall, and the first phase of a new park at the same site, is almost complete. This year Duck is providing free concerts there this summer and fall. By and large the people of Duck are actively involved in their town, eager to enhance its beautification.

“My take is that the atmosphere in Duck will be maintained for the future,” Massey said. “The lack of open parcels available and the tight controls the town has in place to preserve vegetation and minimize house sizes will help.”

Overall, the way the Outer Banks compares to other coastal communities along the eastern seaboard is also a factor in Massey’s estimation.

“It’s hard to find a place near the water with this kind of natural environment and small town feel,” Massey said. Some people from the north who have retired to Florida have chosen to move halfway back home. “My friends call them ‘half-backers,” he said, attributing the reasons half-backers make North Carolina their second choice is that they miss the changing seasons not present in Florida. They miss that rhythm and find the moderate seasonal changes here quite comfortable. Accessibility to friends and family is also a factor; a day’s drive to the Outer Banks is much easier on their children and grandchildren from Ohio than a two-day trip or the cost of airfare.
Farther south, the Town of Southern Shores is a magnet for the mature buyer. It is a full-fledged year‘round residential community that enjoys the shelter of extensive maritime forest, profuse with wild flowering dogwood each spring. The attentive community benefits by a large retirement population who volunteer for many services to such a degree that they also enjoy the lowest tax rate in the county.

Unlike its neighbors to the north with a wide variety of subdivisions, Southern Shores was carefully planned from the start. There are no recreational facilities that rely on hefty homeowner’s association dues. Instead, nominal dues paid to the civic association support community spaces that provide access to ocean and sound with parking and a few playgrounds. The country club, Duck Woods, offers membership for those wishing to play golf and tennis. Like Duck, the residents of Southern Shores don’t want a four-lane traffic corridor through their town and support plans for the mid-county bridge.

Kitty Hawk was never planned, it was settled. It has one of the greater concentrations of old families on the Outer Banks who live primarily on the rolling, wooded ridges that rise above intermittent marsh. Names like Perry, Twiford, Tillett and Baum that appear on many street signs give tribute to these true locals. They avoided government for as long as they could, preferring a live-and-let-live lifestyle, but by 1981 development had intensified to the degree that Kitty Hawk chose incorporation to gain control of its future appearance; its first order of business, a zoning ordinance. The Town has garnered kudos for its efforts to preserve more than 1,800 acres of its woods with the support of the Carolina Estuarine Reserve Foundation.

Mary Davenport, a broker with RE/MAX Ocean Realty and recent Outer Banks Realtor of the Year, believes good development planning is also present. Kitty Hawk Landing is a case in point.

“The people who developed Kitty Hawk Landing had the foresight to buy land at the beach,” she said, citing that homeowners in this tucked-away, soundfront neighborhood are able to enjoy parking and convenient access to the beach.

The largest of the towns with a population of 6,613, Kill Devil Hills is considered “Outer Banks Central” with numerous county facilities including the First Flight Schools complex, the Baum Senior Center, County library and satellite offices, and the site of Wright Brothers National Memorial. With a progressive attitude on growth and redevelopment, it is the first beach community to install streetlights along U.S. Highway 158 and to require all new commercial developers to install sidewalks along that corridor. The new Streets Division, charged with managing storm water run-off, will be housed in a new public works complex, and the Ocean Rescue Division will be located in the new Ocean Boulevard Regional Bathhouse. The Town is completing plans to begin the construction of a second firehouse on U.S. 158 at 8th Street. In 2004 the Town created the Historic Landmark Commission to identify homes and other structures of historic significance. At present the Town is working on an affordable housing effort in an attempt to help new teachers make their homes here and is leading the charge to prevent the construction of new overhead power line towers along U.S. 158.

Like Kitty Hawk and Kill Devil Hills, the Town of Nags Head has a healthy mix of year ‘round residents and vacation homeowners. The Town attracts a high number of anglers due to its proximity to Pirate’s Cove Marina and Oregon Inlet Fishing Center. The only beach nursing home, Britthaven, and the Outer Banks Hospital are both in Nags Head, and the new Nags Head Elementary School opened in January of 2006.

Officials in the Town of Nags Head, encouraged by the many communities that are successfully maintaining their beaches up and down the Atlantic seaboard, are leading the way locally to implement beach nourishment practices. But in April, residents voted down a five-year special tax assessment to fund the program. The Commissioners still believe the majority of residents want nourishment, they just don’t agree on how to pay for it.

The Town took a big step forward, however, in its financial contribution toward the Visitors’ Bureau purchase of 9.6 acres that will be developed into a convention center, with a twist. The “green” facility as envisioned would utilize sustainable energy practices such as capturing rainwater, wind power and solar energy. The Outer Banks Visitors’ Bureau hopes to bolster year ‘round businesses by bringing more visitors in the off-season.

The historic Town of Manteo on Roanoke Island, just west by bridge from Nags Head, is the cultural arts center of the Outer Banks. With several blocks of galleries, restaurants and shops, it is the most walkable and charming of the towns, and it is in the midst of a growth spurt with new, history-friendly developments under way that complement the surrounding neighborhoods that have been tended with care by some of the county’s oldest families. This careful redevelopment is the result of a 20-year plan that was developed by the Town and NC State University that literally sent students door to door to survey the visions of its citizenry. The county seat is in Manteo, and while a new Justice Center has opened, plans to preserve and restore the old historic Courthouse are in progress. New elementary and middle schools have been constructed and the former middle school is being renovated and absorbed by the Dare County Campus of the College of the Albemarle. The only commercial airport, The Dare County Regional Airport, Roanoke Island Festival Park, and the Outer Banks History Center are all located here, as are Fort Raleigh National Historic Site, the birthplace of the New World on Roanoke Island.

Mary Davenport believes that it is also the caring nature and involvement of the people who live on Roanoke Island full-time that make life here a special experience, now and in the future. She cited her neighbors at Heritage Point on Roanoke Island.

“It was asleep for a long time, but eventually, as we got some houses and it turned over from the developer, the community really got together. Now, after a storm we get together to trim trees. We share generators. For new residents we even have a welcome committee.”

Davenport went on to say that she believes that the many people who have moved to the Outer Banks are eager to support the community. “Look at Relay for Life,” she said. “For comparable areas in size and population, we were Number 2 in collections in the nation!”

South of Nags Head, over the aging Herbert C. Bonner Bridge at Oregon Inlet, the 60-mile-long Island of Hatteras elbows some 23 miles out to sea. The Cape Hatteras National Seashore, the Pea Island Wildlife Refuge and Buxton Woods Preserve encompass much of the island, crowned by the granddaddy of all U.S. lighthouses, the Hatteras Light. The seven villages on the island attract sportsmen from around the globe, and as a result bolster the economy during the shoulder seasons. This sport-specific visitation accounts for some of the highest numbers of weeks rented for homeowners engaged in the vacation rental home market. Although many beautiful resort homes have been built in recent years, the island is still an affordable mainstay for anglers, surfers, windsurfers and kite boarders. The northernmost three villages of Rodanthe, Waves and Salvo are contiguous with a small year ‘round population and large vacation rental sector. Avon, Buxton, Frisco and Hatteras villages to the south have more permanent residents, and many of the locals can trace their roots back hundreds of years. Hatteras Island is also gaining a new school this year, and the Graveyard of the Atlantic Museum is finally becoming a reality. The Gulf Stream-bound charter fishing boats operating out of Hatteras enjoy a robust existence because they can reach the blue water in less time than marinas to the north.

Scott Leggat, Vice President of Marketing and Administration at Outer Beaches Realty Inc., said the two main issues facing residents today are the possibility that beach driving will be restricted or prohibited altogether and the imperative need for a new bridge across Oregon Inlet.

“Both of these issues, people are passionate about,” Leggat said.

When asked what he thought Hatteras Island would look like in 20 years, he said, “In some ways, maybe it’s wishful thinking, but I don’t think it will change as much as it has in the past 20 years.”

Leggat’s rationale is that within 20 years, the villages on the island will reach build-out, or critical mass, as he puts it. With no possibility for sprawl into National Park lands, redevelopment of older neighborhoods will likely occur.

In Hatteras, there is also a free ferry service to Ocracoke Island. Development on this island has been hindered in recent years as the water utility has struggled to expand and keep pace with the growing need for service. Like Hatteras, a large portion of the island is part of the National Park. The village, like Manteo, has a waterfront setting as it wraps around a harbor called Silver Lake. It is a charming village with quaint shops, restaurants and enchanting small cottages. This island also attracts visitors in great number, including a significant number of northern Outer Bankers who find Ocracoke to be a perfect weekend getaway.

Eventually, the entire Outer Banks will experience the scenario of build-out that Leggat describes for Hatteras Island. With most communities here already mature and huge expanses of natural land set aside in perpetuity, with much infrastructure already in place and financially solvent municipal and county governments, and especially with a population of residents ready to drive their visions into active planning and meet the challenges as they come into play, Leggat’s wishful thinking might just ring true. If you’re just now considering a purchase of Outer Banks property, it’s possible that the place you buy today will still resemble itself two decades down the road. And that, when all is said and done, is what draws most people here to begin with.

What’s Really Going On with Real Estate on the Outer Banks in 2007?

By Gian Hasbrock

You made it. You’re on the Outer Banks, one of America’s great destinations, and you’re interested in owning a bit of this place. But what’s really going on with the market here? You’ve heard rumors; you know that there are a lot of places listed for sale. Well, this article can answer some of your questions. To get a clear picture of the Outer Banks real estate market, we’ll look at the recent past, which if you don’t look hard at statistics might point to a drier market, but we’ll also get some hints from some real estate professionals who are experiencing their best year ever.

That sound you hear is not necessarily the hiss of the so-called collapsing real estate bubble. More likely it’s just the ever-present Outer Banks wind. But there are quite a few voices in your ear and they’re probably not singing harmoniously. It’s easy to be confused. But the top producers we spoke to are quite clear: Don’t let this year go by without a buy. You really don’t want to wait a few years and exclaim how you could just kick yourself for missing one of the best buyer’s markets on the Outer Banks in years.

Jack Riggle, of BD&A Realty and Construction, had a very successful 2006. What does he think 2007 holds? “If you really look deep at the numbers, you’ll see that our market started its slowdown back in July of 2005. It has already seen its bottom, troughing in July of 2006. I’ve been sensing a pickup since late 2006.” He’s looking forward to the near future where we’ll regain the momentum that drove the market in the first part of the decade. “The pot is beginning to bubble,” Jack said. He predicts a slower than usual spring but a stronger than usual summer and fall. “Now is the time to buy,” Jack said.

To get a more educated look at the Outer Banks market, let’s look at the nation, the region and then the local scene. The number of existing homes sold nationally in 2006 was 6.48 million units, down 8.4% from 2005 when there were 7.1 million units, and down 4.4% from 2004 with 6.8 million. New home sales were down 17.4% from 2005 and down 11% from 2004. Nonetheless, 2006 was the third best year ever for real estate sales, with 2005 the best and 2004 the second. (This just goes to show the strength that the near-50 year lows in interest rates we had in the first part of this decade can bring to a market.) So what’s all the fuss about in the media touting a real estate market that’s in the tank? Simply put, it was the precipitousness of the downturn in 2006 that made the headlines. We had not seen such a marked year-over-year contraction since 1979. (And do you remember 1979? Interest rates then were approaching 20% and inflation was in double digits.) The reality is that the average existing home price in 2006 was $268,300, an increase of less than 1%. New homes average prices at $304,602 were up 2.6% last year.

Dave Hoare, also of BD&A Realty and Construction, has been a top producer on the Outer Banks for years. He knows confusion doesn’t sell. “There’s no confusion now,” Dave said. “Confusion in the past resulted from real estate activity that resulted from a feeding frenzy. Rents were out of alignment with sales prices. Now the rental numbers will dictate the pricing,” he predicted. “There are really good buys out there today. But ensure that your activity reflects the real estate fundamentals,” he advised. “If you’re going to use the property yourself and you believe in the area and its future, then move forward with what time will prove to be a good investment.” Dave noted that without the mob pressure, and with lots of inventory, purchasers can make a truly wise decision. “It’s a great time to be a buyer,” he exclaimed. “Sellers are the ones in a state of confusion. If they bought recently, they have some hard choices.” Dave advises even today to not invest in real estate if you can’t hang on through slower times.

So what does the REALTOR trade organization, NAR, forecast for 2007? They are projecting existing home sales will be down 1% to 6.4 million units and new home sales down 9.4% to .957 million units. NAR is projecting that existing home prices will increase 1.9% this year and new home prices will be up 1.8%. How accurate are their forecasts? Well, um, not very. They tend to underestimate growth in good years and understate losses in bad years. But, okay. We’ll take their forecasts on the national level with a grain of sand (hey, this is the beach, we have more sand than salt). Since we’ve already experienced nearly a quarter of the year already, we can examine the data. How are we doing nationally?

Existing home sales have improved from late 2005 but still lag behind 2006 numbers. In new home sales, the first months of the year showed a continued slide. Down 20% from the same period in 2005, there’s a massive inventory still to be absorbed in the new home markets around the nation. The slide was augmented by historically high cancellation rates as investors fled the market. Where did all those investors go? Well, they went to the stock market, where equities were breaking all-time records...until March when Greenspan sneezed in Shanghai and the markets caught pneumonia. Perhaps some of those investors will be returning to the real estate arena sooner than they thought.

How do we stack up in North Carolina against these national figures? Pretty well. In January of 2007, U.S. existing home sales were down 4.3% from January of 2006, but in North Carolina, we were down by only 2%. Give credit to the Triangle and the Triad, which saw significant 6% increases compared to 2006. How did the Outer Banks stack up? Our market was down 16% in number of sales overall compared to January of 2006, but we did rather well compared to two other resort markets in the state. Brevard County in the mountains was down 52%, and Brunswick County in the southeast was down 54% (ouch!).

Dan Martier is a top producer with Coldwell Banker Seaside Realty, and last year his activity put him in the top 2% of all REALTOR® members of the Outer Banks Association of REALTORS. Dan echoes our other professionals in noting that “it’s a wonderful, amazing time to buy real estate on the Outer Banks. It’s time for the truly savvy buyers to come on.” His best advice to sellers: “Conform. If you really want to sell, you need to conform to where the market is today, and it’s still adjusting. There’s just so much competition out there, you must place yourself in a position to sell,” Dan mentioned. To be placed in that position, it’s all about your pricing. “So if you really want to sell, you’ve really got to take a hard look at your price to get noticed,” he concluded.

The bright spot on the Outer Banks statistics is found in comparing homes under contract in the first two months of 2007 compared to 2006. With 211 units contracted this year compared to 123 last, that’s an increase of 72%. Land sales remain highly depressed on that same measure: down 67% compared to 2006. Tip O’Neill once said that all politics is local, and real estate is all about the specific location. The top submarkets for homes on the Outer Banks, based on activity so far this year, are Kill Devil Hills, Nags Head, Kitty Hawk, Corolla, and Duck. Another bright spot is that median pricing in February is down only 1% from the same month in 2006. Back in July of 2006, the median price was down nearly 20% from a year earlier.

Ben Seal, who works with OBC Real Estate has been active in the Outer Banks real estate market for more than 20 years. He has seen many cycles, both boom and bust. Ben advises, “Go south [to Hatteras Island]. Visit the newest communities where there is still room for appreciation. Natural amenities are waiting to be enjoyed. Buy now, because supply of quality waterfront neighborhoods is limited,” he advised. Sellers and developers are offering great incentives to become involved. “There’s no doubt: Market conditions are in the buyer’s favor,” Ben said.

The real estate market runs in predictable cycles. Last year we concluded an expansion in real estate nationally that ran double the length of the “normal” cycle. It was a necessary correction, a breather, and here on the Outer Banks, we were blessed that we got most of our pain out of the way early. So, before you say bye to the Outer Banks, consider a buy. Our panel of professionals say that it’ll save you from that horrible comment you might make 10 years from now of…”If only we had bought back in 2007!” Don’t miss one of the best buyer’s markets ever on the Outer Banks.

Gian Hasbrock, MIRM, CRS, ePRO, is VP of Sales & Marketing for OBC Real Estate in Kitty Hawk and Salvo and heads WOWISM (Walk On Water Inspired Sales & Marketing). Reach Gian at (252) 207-9000 or gian@wowism.com