Market Update-May 2019

After the last 5 years of record-breaking sales the Outer Banks market is starting to revert to normal levels.  Year to date sales for 2019 are about 20% below 2018 record breaking year but are still above average for the last 10 years. Inventory has been at a record low over the last 5 years and has started to get back to a more balanced market supply. Year to date the average sold price for single family homes, condominium’s, and townhouses is basically flat vs 2018's 4.5% increase. Since the average sale price from to Corolla to Hatteras bottomed out in 2013 prices have rebounded appox. 11% in the last 5 years and at its highest point in the last 10 years. The average days on market from the time a property is listed to closing is at the lowest point it’s been since 2006 and currently is at 108 for 2019!! Mortgage rates continue to stay in the low to mid 4% range. As 2019 goes on my lenders are telling me rates are projected to hold steady in the 4% 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 conventional loans was raised for 2019 from $417,000 to $484,350. 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. With low mortgage rates plus strong rental returns home affordability on the Outer Banks is the best it’s been in years.