SPRING MARKET UPDATE
With the summer season officially starting this month, we thought it might be interesting to check the status of the island’s real estate market. We are pleased to report that residential sales have been significantly higher (+47.2%) during the first five months of this year compared to the same period in 2009. In addition, the average selling price has remained essentially unchanged (-0.4%). The average residential selling price from January through May this year was $370,538. Both of these statistics lead to the cautious conclusion that the real estate market on Hatteras Island looks like it is on the road to recovery.
We were also curious to see how the selling prices of cottages in various locations have changed during the buyer’s market that we have experienced over the past five years. Oceanfront property prices have been hit the hardest, while soundfront have held their values the best. The following table shows the changes that have occurred in average residential selling prices between January – May 2005 and January – May 2010.
AVERAGE RESIDENTIAL SELLING PRICES
|
Jan – May 2005 |
Jan – May 2010 |
% Change |
|
| Oceanfront |
$1,030,220 |
$489,045 |
-52.5% |
| Soundfront |
588,554 |
444,750 |
-24.4% |
| Canalfront |
374,326 |
268,316 |
-28.3% |
| Soundside |
423,668 |
316,865 |
-25.2% |
| Oceanside |
557,359 |
378,387 |
-32.1% |
DIstressed properties represented close to 50 percent of residential sales in both the first five months of 2009 and 2010. While the number of foreclosed properties that were sold decreased slightly, the number short sales dramatically increased from 3 in 2009 to 17 this year. Our sense is that this increase reflects a growing awareness among sellers that short sales are a viable alternative to foreclosure, and a higher comfort level among real estate brokers with the details of the short sale process.
The practical implications of these numbers are twofold – those properties that are priced to reflect current market conditions will be the most likely to sell, and, it’s a great time to buy on Hatteras Island while we are still in the very early stages of recovery.
Whether your interest is in selling a property that you own or in purchasing a home or lot, we are available to personally assist you or someone you know. Our experience and expertise can help you to interpret market trends, and we will guide you through every step of a transaction. We may be reached by e-mail at hranicka@hatterasisland.com or by phone at 252.305.1556.