WELCOME TO THE HATTERAS ISLAND REAL ESTATE BLOG!!!
Welcome to the Hatteras Island Real Estate Blog! Our goal in creating the blog is to establish an interactive online forum for the discussion of issues related to Hatteras Island and its real estate market. We hope that you will feel comfortable adding your comments and observations to the blog, and we invite you to participate on a frequent basis as a vehicle for all of us to gain a better understanding of the island and the changes that it is facing on a variety of fronts. We also intend to use the blog as a means to communicate important information on a timely basis, so be sure to sign up for our e-mail notification service.
Perhaps the most noticeable change on the island over the past year has been the dramatic shift in the real estate market from a seller’s market to a buyer’s market. With August sales results just finalized, there is virtually no change in the state of the real estate market on Hatteras Island from what we have seen over the past eleven months. The inventory of property for sale is about 60 percent higher than it was a year ago, and both the number of sales and the volume of sales are down approximately 50 percent. While the average selling price of residential properties is 2.4 percent lower for the first eight months of the year compared to the same period in 2005, the average selling price of unimproved lots is up over 28 percent on a very limited number of sales. The Hatteras Island Pending Home Sales Index, a leading indicator of sales 45 to 60 days in the future, has remained essentially flat since last November, suggesting that current market conditions will continue for the next few months.
There are any number of opinions concerning the reasons for this state of the market. Our personal opinion is that the withdrawal of investors from the market , rising interest rates, price appreciation that outpaced income growth, and a soft rental market have caused property sales to languish.
Fortunately, there are some signs on the horizon that the market may be stabilizing.
– For those homes that have sold, prices have held up well, although price declines are starting to appear.
– The Fed appears to be at or near the end of its interest rate increases.
– Nationally, second home sales now account for about 40 percent of all residential transactions.
– Over half of all baby boomers are still under 50 years of age, suggesting strong pent-up demand.
New flood insurance rate maps for Dare County became effective on Wednesday, September 20, 2006. All new construction projects and additions will be based on flood elevations noted on the new maps. Any proposed project must include an up-to-date survey with the base flood information established using the new flood maps. Apparently, a new datum is being used to establish elevations – thus, the need for new surveys.
Autumn is a spectacular season on the island with warm days, cool nights, good fishing, warm ocean temperatures and a reduced number of visitors. We hope that you will have the opportunity to visit during this very special time of the year.
April 1st, 2007 at 10:44 am
4/1/07 – No April Fools! From casual monitoring of the Hatteras MLS over the past year, it appears that listing prices on many of the new listings are coming down sharply. I would imagine this is from the “serious sellers” anxious to sell and get out. At the same time I am seeing many of the properties listing for top dollar and then some. I don’t think Hatteras has quite “bottomed” yet as some bargains are starting to appear among those serious sellers. Bernanke interest rate cut may happen toward end of year and will be in very slow and deliberate 1/4% intervals; that is, should oil, geopolitics, and inflation cooperate. For investors probably 2008 may provide opportunity?