THE SIMPLE FACTS ABOUT THE REAL ESTATE MARKET
With all of the recent news reports about the housing market decline and problems related to sub-prime mortgages, it is easy to fall into the trap of thinking that the real estate market on Hatteras Island is completely dormant. In reality, nothing could be more distant from the truth. Here are some simple facts:
· Properties are being bought and sold all of the time, regardless of market conditions.
· Based on a study of prices that we conducted earlier this year, the majority of residential properties that sold between January and June for which we could obtain data had a selling price that was higher than the purchase price.
· Interest rates remain near their historical low points, and financing is readily available for qualified borrowers.
· Buyers are value-shopping, searching for the homes that are the most attractively priced and in the best condition.
As you read the newspaper and watch television, keep two or three things in mind. First, real estate is cyclical, and it is a long-term investment. The reports that we are seeing and hearing focus on the short-term crisis du jour. Second, every real estate market is local. While there can be no denying that events in the outside world have some effect on the Hatteras Island market, the statistical profile for our resort environment is quite different from the national, primary residence market that is the basis for the reports. Third, as we have seen during the past few days, our government is not going to let an economic collapse occur, especially with elections less than a year away.
Whether you are a prospective buyer, a seller, or just an interested observer, the current real estate market is filled with opportunities if each of us will take the time to evaluate the facts rather than being swayed by hearing only one side of the story.