Market Update-Dec 2018

That does for 2019 and what a year it was!!  The market, by 1 house, was able to continue the 5 year streak of breaking the previous years record for number of houses sold. The average sold price for single family homes, condominium’s, and townhouses was up 6% over 2017 making it 10.5% over the last 3 years. The average days on market from the time a property is listed to closing is at the lowest point its been since 2006!! Lot sales have gone crazy with prices up 25% from last year. To say we are in a new construction boom is an understatement. Since I started selling real estate in 2003 I have never seen so many new houses being built. With inventory very low and high buyer demand I foresee prices continuing to move up in the months ahead. 

The big news this year has been on the mortgage front. Mortgage rates started the year in the low 4% range then climbed to over 5% before dropping back down below 5%. As 2019 goes on my lenders are telling me rates are projected to hold steady in the 5% range. The good news is that lenders are loosening up requirements and are now offering loans up to $650,000 with only 10% down and loans over that up to $1M with 15% down with no Private Mortgage Insurance to qualified buyers. That is huge for anyone looking to get into a beach house with a minimal down payment. The loan limit for convevntional loans was raised for 2019 from $417,000 to $484,350. 

If you are in the market to buy now is the time!!!  This is the best time of year to buy a house on the Outer Banks. Buying now insures that you get 100% of the rental income for 2019 with only 10 months or less of expenses. This helps with cash flow in the first year of ownership. Also when buying now at closing you will get a check for the pro-rated rentals that are booked for 2019. The average out of pocket expense to own a rental property is approx. $500 to $1000 a month. The rental income takes care of paying for the utilities, taxes, insurance, management fees, and part of your mortgage. With over 7 million people a year coming to the Outer Banks to vacation rental demand for houses is very high. For those looking for a 2nd home buying now gives you the opportunity to make the home yours, so you can come down and enjoy it for the rest of the year. Prices and interest rates are going up and that effects home affordability. Contact me today to get the process started. I can provide detailed cash flow analysis for rental houses, work with to get you qualified, help guide you through the buying and closing process. Put my 15yrs of experience with buyers and sellers to work for you!