July Recap

Posted Heather McLayPosted in News Letter

July was a fantastic month on the Outer Banks. Occupancy hit 100% for most of the month and it was evident with heavy Saturday traffic and crowds abound. The rain took a bit of a hiatus, and we were fortunate enough to enjoy some cooler temperatures for much of the month.

Dare County approved the 1% occupancy tax increase in mid July. The rate will be 6% beginning in January of 2014, which is the same rate as Currituck County. The additional funds will be allocated to beach nourishment and shoreline management projects. The increase is expected to raise over $3.5 million each year.

If your homeowners insurance policy is up for renewal, be advised that rates increases are now in effect. The barrier island portions of Dare, Currituck and Hyde counties will see a 17% increase. Mainland areas will see a 3.4% increase. The rate increase will not apply to you if your rate was increased last year.

The Town of Duck has approved restrictions on oceanfront accessory structures such as pools, gazebos, and dune decks. These structures will now be prohibited within the first 30 feet of the fist line of stable natural vegetation. This will have the largest impact on the eroding areas of shoreline in Duck. Duck is also working on its first pedestrian plan. The goal is to improve the pedestrian experience in Duck with infrastructure improvements. The focus will be on the village center which has the highest pedestrian and bicycle usage. We hope that Corolla is going to follow suite.

In Real Estate news, interest rates have reached a 2 year high. The conforming, 30 year fixed rate is now at 4.5% and may increase a little more in the next 12 months. The year to date sales are still only down slightly compared to 2012. Residential sales are down by 3%, but the current number of under contract properties is only down by 1%, and land contracts are up by 6%. All year we’ve seen the number of distressed properties for sale decrease. At the close of 2012, distressed properties made up 13% of total inventory, and now they make up only 8%. We continue to see signs of market improvement and we are busier showing property to potential buyers than we’ve been in years.

As always please don’t hesitate to get in touch if you have any real estate related questions or concerns. We always like to hear from you.

June Recap

Posted Heather McLayPosted in News Letter

Rain, rain go away!  June was certainly not a dry month for our area.  We had only 14 days with no rain, and our rainfall total was nearly an inch and half more than our normal June rainfall totals.  Even though all of this rain has made everything very lush and green, we hope it clears up soon. 
 
Dare County will be voting on a 1% occupancy tax increase on July 15th.  The current rate is 5% and is 1% less than Currituck County currently charges.  The County needs to make up funding for the proposed beach nourishment projects in Kill Devil Hills and Duck.  The town of Kitty Hawk is also working on a large scale plan to reduce storm flooding.  These projects are critical to the long term enjoyment of the area.  
 
The town of Duck may soon be cracking down on oceanfront properties.  On June 5th, 2013, the Town Council of Duck held a public hearing in regard to a proposed ordinance that would require oceanfront pools, decks, dune decks and gazebos to be located a minimum of 30 feet from the first line of stable natural vegetation. CAMA currently requires a minimum setback of 60 feet for these types of structures but does not regulate placement within that setback. Thus, in some ways, the proposed ordinance is more restrictive than current CAMA regulations. The ordinance also has other requirements and bans.   We will keep you informed on this matter. 
 
In real estate news, interest rates are on the rise.  Rates are still low, but the days of 30 year fixed rates under 4% may soon be over.   With the first half of 2013  now behind us, we have some concrete numbers that indicate that this year will not be as good for sales as 2012 was.  The total sales volume is down by 12%.  Residential sales are down by 6%, but land sales are still up by 3%.  The good news is that the number of distressed properties on the market continues to decline.  Distressed properties now account for only 9% of the total inventory,  compared to 13% at the close of 2012.   During the first quarter of 2013, distressed properties made up 31% of the total sold properties, and that number is now down to only 16%.  This is a big improvement, to say the least. 
 
If your summer plans bring you to Duck, please stop by and say hello.  And, as always, please let us know if you have any real estate related questions.

May Recap

Posted Heather McLayPosted in News, News Letter

After what felt like the never-ending winter, it is feeling like summer on the Outer Banks again! The weather has been almost perfect for enjoying outdoor activities, and we are seeing visitor traffic picking up considerably. We are looking forward to another beautiful summer on the Outer Banks and hope your summer plans bring you to the area.

In real estate news, 2013 is finally beginning to pick up pace a bit. Residential sales have been down around 18% all year until now, but currently are down by only 5%. So even though residential sales aren’t up from last year, at least we are moving in a positive direction. Compared to this time last year, land sales are up by 15%, foreclosure fillings are down by 16%, and distressed properties are currently making up only 10% of active inventory, compared to last year’s 13%. At one point distressed property sales were nearly 40% of sales, but now only 22% of sales are for distressed properties. As we predicted, the market is making a slow but steady recovery. Continued low interest rates and fantastic deals are the biggest driving factors.

As always, please do not hesitate to contact us if you have any real estate related needs that we can help with. We hope your summer is off to a wonderful start.

April 2013 Recap

Posted Heather McLayPosted in News Letter

We certainly had our share of April showers along the Outer Banks.  Much of the month was cloudy and windy, but we were lucky enough to have had an entire week of summer-like temperatures in early April. 
Our big news is that we have a newly designed website!  Please take a look at it and let us know what you think at www.obxhomes.com.  It is more user friendly, and the revamp was long overdue. 

In real estate news, residential sales remain down for 2013.  We’ve seen an 18% decline; however, land sales are up by 19%, so the news isn’t all bad.  Now that spring is in full swing we are also noticing the number of properties under contract has increased.  Interest rates are still very low, and inventory is steady.  The number of foreclosure filings is also down for this year by about 1/3.  Distressed property sales have once again decreased and are now below market highs, currently accounting for 30% of the total sales for all of Dare and Currituck counties. 

If you have plans to be in the area, take note of some upcoming events.  Downtown Manteo has started the First Friday celebrations once again.  The first Friday of every month is a must experience on Roanoke Island.  Duck will begin fitness classes on the lawn June 5th, and Duck’s summer concert series will begin on June 27th.  The Outer Banks Music Festival takes place at the Whalehead Club on May 26th, and the Whalehead Wednesday wine festivals will begin on May 29th. 

We hope to see you soon.

March 2013 Recap

Posted Heather McLayPosted in News Letter

The cool weather we are experiencing on the Outer Banks this month and last has not deterred the spring break crowds from visiting, and local businesses are enjoying the summer-like influx of visitors. Pretty soon it will be beach weather again! As a reminder to beach-goers, much of the Outer Banks have passed ordinances that do not allow personal items to be left on the beach after 5 pm. This means you must disassemble beach tents in the afternoon and remove them, or they may be gone the next day. You must remove all chairs, hammocks, umbrellas, and any other items that you want to keep.

We also want to make you aware that new flood maps are soon to be issued for both Dare and Currituck Counties. Currituck County expects to have maps near December of this year. Dare County will not have new maps until sometime in 2014. We are expecting that some properties that are not currently in flood zones could be changed to flood zones. Therefore, if you are considering a ground floor enclosure you would be wise to get it done as soon as possible, as you may not be able to get a building permit after flood zone changes go into effect. We’ve enclosed some recent articles on the flood zone changes.

In real estate news, we are disappointed to report that sales for the first quarter of 2013 have not been as good as we had hoped. Residential sales are down by 14%. However, land sales have jumped by 49%, helping to soften the weaker residential numbers. Residential under-contract properties are down by 2%, while land is up by 19%. We also saw a dramatic jump in distressed property sales early this year with 40% of all sales being distressed sales. That is the highest we’ve seen in 7 months. These statistics are for all of Dare and Currituck counties including the mainland. If we focus only on the northern Outer Banks the numbers are as follows: There are currently 8 bank-owned properties in the multiple listings as active listings and 36 short sale properties. There are 6 bank-owned properties that are currently under contract and 26 short sale properties that are under contract. Eight bank owned properties and 7 short sale properties have sold so far this year on the Northern Outer Banks. The inventory is holding steady. It seems the road towards our market recovery is a long, slow one.

As always if you have any questions or concerns we are happy to help.