Hatteras Island Real Estate Blog

• This winter (January to March), a large section of Route 12 on Ocracoke will be closed while the bridges north of the village are replaced. During this time vehicles will be routed along the beach. At first, this may seem like a major inconvenience, but when you think about it, it sounds like one of those times that we will be able to tell our children and grandchildren, “I remember when the road on Ocracoke was closed, and we had to drive on the beach to get to the village!”

• When we travel to Hatteras Island from the north, we all use Route 158/168, and some use Route 13/113 along Virginia’s eastern shore. These are two extremely dangerous highways that experience a large number of fatal auto crashes each year. In many cases, the accidents are caused by vehicles crossing over the center line into oncoming traffic.  Our sense is that some of the drivers are falling asleep after driving all night to get to the Outer Banks. Please be especially careful whenever you are on either of these highways.

• If you would like to see the traffic conditions at various points along the way to Hatteras Island, the North Carolina Department of Transportation has 17 web cams along the highways in Dare and Currituck counties. These are in addition to the web cams on Hatteras Island. To view these web cams, go to  http://apps.dot.state.nc.us/tims/ for the off-island cameras and to http://www.darenc.com/webcam/  to see the cameras at the S-Curves in Rodanthe and just outside Hatteras Village.

• Finally, our suspicions that there were more visitors on the island this year were confirmed by an article in the Virginian-Pilot newspaper that reported that the Hatteras/Ocracoke ferry has carried 8,000 more vehicles this year than at the same time last year. We suspect that media reports noting that Ocracoke Island is the best beach in America have something to do with this surge. High gas prices have also been cited as a possible cause.

After some encouraging signs late last year, it was frustrating to see the Hatteras Island real estate market showing signs of further softening in the first quarter of 2007. Residential sales were down 13.5 percent, and unimproved lot sales declined 70.0 percent compared to the first three months of 2006. When all categories of properties are taken into account, total sales were off about 30 percent.

The Hatteras Island Pending Home Sales Index, an indicator of anticipated closings 45 to 60 days in the future, has steadily declined since last November.  The index is showing that current levels of residential contract activity are about 38 percent of the average level experienced in 2001, the first of the recent boom years. The index suggests that sales will be subdued for at least the next two months.

The supply of properties continues to exceed demand by a wide margin.  There is currently a 3.1 year supply of homes for sale on the island. The supply/demand relativity for unimproved lots is even more out of balance.  Presently, there is a 6.5 year supply of home sites for sale on Hatteras Island. There were only 6 lot sold on the entire island during the first quarter of this year!

As supply continues to exceed demand, the quarterly median selling price of residential properties has declined 35 percent from $645,000 in June 2005 to $419,000 for the first quarter of 2007. In contrast to 2006 when residential sales in the $400,000 to $500,000 range dominated sales, during the first quarter of this year, home sales in the $200,000 to $300,000 price range were most prevalent. Lot sale prices ranged from $125,000 to $220,000, indicating buyer preferences for the lowest priced properties. By contrast, during the first quarter of 2006, there were 20 sales with half priced over $300,000.

Geographically, first quarter residential sales were concentrated at the north and south ends of the island.  It is very interesting to note that oceanside properties in Waves, Salvo, Avon and Frisco were in least demand.  Oceanside properties usually represent the highest demand locations.

Over the Easter holiday, it was heartening to see an increased number of prospective buyers looking at properties.  We continue to anticipate improved market conditions later in the year, but we believe that the psychological boost of a reduction in the federal funds rate will probably be a key ingredient to the timing of any significant change in the direction of the real estate market on Hatteras Island.

After taking all of the statistics and observations into consideration, we think that it would be reasonable to conclude that the real estate market on Hatteras Island is still in the process of adjustment from the boom years, although we are seeing some positive signs that 2007 may be a better year than 2006 for both buyers and sellers.  The increased number of buyers looking at property is good news for sellers, especially those who have recognized that buyers are value-shopping, searching for the homes that are the most attractively priced and in the best condition.

Bottom line – It’s a great time to be a buyer on Hatteras Island!

Did you know that part of a major Hollywood movie is going to be filmed on Hatteras Island?  “Nights in Rodanthe”, based on a novel of the same name by Nicholas Sparks is scheduled to start shooting on May 9^th.  Richard Gere and Diane Lane will be the stars of the film.  Even more exciting, if you are on the island and would like to try out for a part, a casting call will be held at the Lost Colony building at Fort Raleigh in Manteo on May 4^th from 1 p.m. to 5 p.m. and again on May 5^th from 9 a.m. to 1 p.m.  Reportedly, as many as 400 locals may be selected for a scene depicting an oyster roast or a crab picking. There may actually be some speaking roles!

According to The Virginian-Pilot newspaper, “the story is about a divorced middle-age mother who meets a retired doctor and falls in love while visiting Rodanthe.” Scenes are scheduled to be shot in Manns Harbor, Manteo, Ocracoke, Rodanthe, the Chicamacomico Life-Saving Station, the ferry dock, and the Rodanthe pier.

In our opinion and in the opinion of others, not only will the movie be fun, but it has the potential to create an awareness of Hatteras Island and its natural beauty.

Who knows, we may see you on the silver screen!