Outer Banks Real Estate Update: The “Seaside Report” – 2.14.12

Posted on February 14, 2012

The Seaside Report

The main economic driver on the Outer Banks is real estate. Yet, the OBX does not have an in-depth report analyzing the full spectrum of real estate on the Outer Banks – residential & commercial sales, distressed properties (foreclosures & bank-owned), and current vacation rental trends.

To meet this need for a detailed analysis of the current Outer Banks real estate market, including the often ignored but incredibly important vacation rental market, we have created the monthly “Seaside Report.”

We have combined the forces of both sides of our business – Outer Banks real estate sales with Coldwell Banker Seaside Realty & OBX vacation rentals with Seaside Vacations – to bring you the first report to offer a comprehensive view of the OBX real estate market – real estate sales & vacation rentals.

Please keep in mind that there is a lag time between “real time” and data collection/reporting. As a result, the information will be as close to “real time” as possible, but the data will be based in the past by a couple weeks at least. I will indicate the corresponding date/timeliness for each section of data.

As always, we appreciate your input, and we encourage you to leave your comments below. We are happy to address any questions you may have, and we are always interested in suggestions for improvement.

Outer Banks Real Estate Sales
(Data Source: OBAR)

January 2012 OBX MLS Data:

2012 is off to a great start for Outer Banks real estate. January is typically a slow period for real estate, but the OBX market has been anything but slow in January 2012.

The total number of sales in January was up 17% over January 2011.
Under Contracts were up by 38% from January 2011.
January sales ran the gamut from $20k (land) to $1.6 million (KDH oceanfront).

YTD Sales Residential

Up 13% (94 units vs 83 units)
Land – Up 13% (17 units vs 15 units)
Commercial – up 100% (2 units vs 1 unit)

YTD Under Contract

Residential – Up 32% (144 units vs 109 units)
Land – Up 43% (33 units vs 23 units)
Commercial – Up 500% (6 units vs 1 unit)

Distressed Sales: (Distressed = Bank Owned and Short Sales)
Of the 347 new listings in January, 22 were potential short sales & 42 were bank owned. Sold distressed sales data for the month:

	Total Sold	Bank Owned	Short Sale	% Distressed
January	113	20	16	32%

4th Quarter 2011 OBX MLS Data

Summary – Overall, 2011 ended on a flat note with total sales down by approximately 1% and under contract listings down by 1%. However, there has been a notable decline in the median sale price of single family homes and condos. When comparing the yearly median sale prices there has been a 6 % decline in the price for single family homes and a 10% decline in the price for condominiums. Additionally, when looking at the 5 year trend in median sales prices there has been a 24% decline in single family home prices and a 41% decline in condominiums.

Median Sales Price
	2006	2007	2008	2009	2010	2011
Single Family Homes	$416,833	$383,599	$352,607	$319,500	$334,795	$316,269
Percent Change	-10%	-8%	-8%	-9%	5%	-6%
Condos	$335,642	$278,291	$325,260	$278,252	$218,031	$195,968
Percent Change	8%	-17%	17%	-22%	-22%	-10%

2011 Sales End-of-Year Breakdown

Residential: Down 3% (1315 units vs. 1374 units)
Land: Up 15% (323 units vs. 282 units)
Commercial: Up 92% (25 units vs. 13 units)

Year-End Sale Price Range: The best selling residential properties fell into the $200K to $299K range.

Price Range	$0 – 99K	$100 – 199K	$200 – 299K	$300 – 399K	$400 – 499K	$500 – 599K	$600 – 699K	$800 – 999K	> $1M
Units Sold	81	302	328	219	117	88	88	49	55
Average Days on Market	168	191	208	267	270	264	260	302	308

Inventory: The majority of the current active residential listings fall in the following price ranges:

Price Range	Number of Listings	Price Range	Number of Listings
$1 – $99,999K	73	$600K – $699K	109
$100K – $199K	230	$700K – $799K	51
$200 – $299K	330	$800K – $899K	58
$300K – $399K	324	$900K – $999K	38
$400K – $499K	217	> $1M	121
$500K – $599K	173

Distressed Property (Residential): Distressed = Bank Owned and Short Sales

Distressed property currently makes up 14% of the active inventory in the MLS and the sale of distressed property accounts for 31% of all residential property sales. Overall, the sale of properties listed as short sales rose 27% and the sale of bank owned properties declined 22%; however, total distressed property sales were down by 8% from 2010.

Seaside Report: Distressed Property Market Overview - Q4 2011

	Average	Median	Days On Market
Q4 11	$290,550	$205,000	225
Q3 11	$306,648	$239,950	231
% Change	-5.25%	-14.57%	-2.60%

Market Highlights – Sold Properties

Single Family Homes, January 1 – December 31, 2011

Duck continues to have the lowest percentage of distressed property sales, ending the year with a total of 22%
Hatteras Island has the largest percentage of distressed property sales with 55% of all sold single family homes being either bank owned or short sales
Although the Outer Banks had a slight decrease in single family homes sold for 2011 (1159 vs. 1193) the amount of sales over $1 million dollars increased. There were 46 homes sold for over $1 million this year compared with 39 last year. Of the 46 sold, 9 homes sold for over $2 Million (compared to 4 in 2010)
Distressed sales accounted for 37% of all residential (single family & condos) sales in 2011, which was the same as the previous year.

Outer Banks Vacation Rental Market
(Data Source: NAVIS GeoAnalytics)

Average Booking Window
Legend: 2011; 2012

This graph demonstrates the average number of days between booking and check-in date. This graph is summarized by month of booking, rather than month of stay.

For example, the reservations made at this time of year are about 170 days in advance of their check-in date. The takeaway message is that guests should book early for summer months in order to reserve the most desirable homes and weeks – about 170 days in advance at this time of year.

Seaside Report: Average Booking Window - January 2012

Seaside Report: Average Booking Window - YoY Variance - January 2012

Average Length of Stay
Legend: 2011; 2012

The Length of Stay graph illustrates the average number of days between check-in date and check-out date of reservations, summarized by check-in month.

As would be expected for the Outer Banks, the average stay is seven days + for the summer months and varies in the shoulder season. A strong takeaway here is that full weeks are a must for the summer months, but Spring and Fall offer great opportunities for shorter stays and discounted rates, while maintaining the great benefits of gorgeous weather, empty beaches, and ample attractions and activities.

Seaside Report: Average Length of Stay - January 2012

Seaside Report: Average Length of Stay - YoY Variance - January 2012

Average Stay Value
Legend: 2011; 2012

The Stay Value graph illustrates the average revenue actualized or projected for reservations, summarized by check-in month.

The clear message with this graph is that demand is high and supply is low during the summer months, and as a result, prices are driven higher during the summer months. As mentioned above, Spring and Fall offer great opportunities for shorter stays and discounted rates, while maintaining the great benefits of gorgeous weather, empty beaches, and ample attractions and activities.

Seaside Report: Average Stay Value - January 2012

Seaside Report: Average Stay Value - YoY Variance - January 2011

Bookings
Legend: 2011; 2012

The Bookings graph illustrates the number of reservations actualized or on the books, summarized by check-in month. This graph gives a good view of the “strength” of the reservations over the previous year. Reservations are up, which indicates that early reservations are wise and prices should remain constant. Although, at this point, July is slightly under-performing in comparison to 2011. This will be a trend to keep an eye on.

Seaside Report: Bookings - January 2012

Seaside Report: Bookings - YoY Variance - January 2012

Outer Banks Behind the Lens: January 2012

Posted on February 1, 2012

Outer Banks: 1.29.12 - Gorgeous OBX Sunset

2012 is underway, and we now have one month behind us. I don’t want to jinx us, but it was a pretty fabulous month on the Outer Banks – bright sun, blue skies, 60′s, surf…we could use some more fishing, but overall no complaints.

As I’ve mentioned in my other Outer Banks Behind the Lens posts, each and everyday I try to make time to get to the beach to snap a photo and give a quick beach report. This morning routine has become one of my favorite times of the day. In addition to the morning photo, I do my best to snap great OBX photos anytime I see them.

I just put the finishing touches on a slideshow of all my Outer Banks pictures from January 2012 on Flickr, and in my humble opinion, it’s a great way to kill a few minutes.

Kick back, relax, and enjoy some OBX sights…

Outer Banks Beach, Surf, & Fishing Report: 1.31.12 – Gorgeous Winter Weather

Posted on January 31, 2012

Outer Banks: 1.31.12 - Awesome Winter Weather in Kitty Hawk

Good morning. Here’s your Outer Banks, Beach, Surf, & Fishing Report for Tuesday, January 31, 2012.

This video was shot at the Kitty Hawk Bath House at 9 AM.

Happy last day of January. Time flies. I din’t want to jinx us, but we have had amazing winter weather so far. The next few days will be bright sun, blue skies, southwest breeze, and temps in the 60′s. Hard to beat that winter weather.

Unfortunately, the ocean is flat. No OBX surf for the next few days. The swell will pick up towards the end of the week, the wind will switch to the north at the same time, so clean surf is unlikely this week.

OBX fishing is slow. Dog fish and skate at Jennette’s Pier, but no stripers. The good news is there is good action offshore with tuna. Boats out of Oregon Inlet are giving consistent reports of hooking up with blue and yellow fun tuna.

Hope to see you soon. Have fun!

OBX Moment of Zen: 1.30.12 – Mild Winter Week

Posted on January 30, 2012

Outer Banks: 1.30.12 - Pretty at Avalon Pier

Good morning. Here’s your OBX Moment of Zen for Monday, January 30, 2012.

This video was shot at the Avalon Pier in Kill Devil Hills at 8:30 AM.

Great week ahead. Sun with 50-60 degree temps, and offshore wind all week.

Unfortunately, Outer Banks surf looks minimal this week. Knee high swell may pick up a little towards the end of the week, but it looks like a mostly flat week.

Outer Banks fishing is slow. Some good tuna catches offshore.

Hope to see you soon. Have fun!

OBX Moment of Zen: 1.27.12 – Soggy & Warm

Posted on January 27, 2012

Outer Banks: 1.27.12 - Soggy & Warm in Kitty Hawk

Good morning. Here’s your OBX Moment of Zen for Friday, January 27, 2012.

This video was shot just south of the Kitty Hawk Pier at 8:45 AM.

Warm weather feels great. 60′s today. But we are starting with some clouds. Morning t-storms are moving out, and hopefully we’ll see the sun this afternoon.

Sun will stick around for the weekend, but temps will dip to the 50′s.

A little swell in the area, but no surf this morning. The wind is stiff out of the south pushing the t-storms out. But we we could see a good wind switch to the southwest after lunch that could clean up the swell for an afternoon surf session. Small window of opportunity, so keep your eye on it.

OBX fishing is slow. Tuna offshore. Some dog fish and tile fish around Jennette’s Pier, but still no stripers.

Hope to see you soon. Have fun!

Outer Banks History: Burnside’s Expedition

Posted on January 26, 2012

Outer Banks History: Burnside's Expedition

The Outer Banks is well-known for some obvious reasons – gorgeous beaches, great weather, fabulous beach vacations, etc. – but I often find that OBX lovers miss some of the less obvious magic.

I know, it’s tough to pull ourselves off the beach to see what else is around, but WOW, the Outer Banks is amazing beyond the beach. I could give a long list of reasons for my amazement, but for purposes of this post, I’m going to stick to one subject, OBX history.

The Outer Banks has sooo much history – the Wright Brothers, Blackbeard the Pirate, The Lost Colony, shipwrecks, Civil War battles, sunken WWII submarines, wild horses descending from Spain!

It’s bizarre to think the OBX is such a popular vacation destination, but the massive amount of history goes unnoticed by the majority of visitors.

OK, I agree, history lessons are not quite as fun as toes in the sand. But let’s spend a few minutes to realize what’s going on around us. And to help with this, we’re going to drop some OBX history knowledge on you all year long. Every month, we’re going to pick a piece of Outer Banks history and pass it along you.

So next time you have your toes stuck in the sand, you can tell everyone about the great history all around us…even if the beach won’t release it’s grip.

Stay tuned, more great Outer Banks history to come.

Let’s start with a bit of OBX Civil War history. January marks the start of “Burnside’s Expedition.”

Here is Wikipedia’s description of Burnside’s Expedition:

Burnside’s North Carolina Expedition (also known as the Burnside Expedition) was a series of engagements fought along the North Carolina Coast between February and June 1862. The expedition was part of Winfield Scott’s overall Anaconda Plan, which aimed at closing blockade-running ports inside the Outer Banks. The amphibious operation was carried out primarily by New England troops under Brig. Gen. Ambrose E. Burnside and assisted by the North Atlantic Blockading Squadron under Captain Louis M. Goldsborough.

You may have noticed in Wikipedia’s description that the battles took place between February and June. But I just said January marks the start date. What gives?!

Take a peek at the caption on the monument pictured above. As is the case at this time of year, OBX weather is unpredictable and often dangerous. Nor’easters love the winter months on the Outer Banks, and Burnside’s Expedition got off to a late start because once the fleet (80 ships!) took off from VA, Mother Nature threw them for a loop. Two days after lifting anchor, the fleet hit a strong nor’easter trying to cross Hatteras Bar, and reassembling the fleet in Pamlico Sound was delayed until February due to stormy weather.

OBX weather strikes again! You really can’t beat Mother Nature…she has our number.

There’s your Outer Banks history lesson for the month. Hope you enjoyed…and took notes.

Can’t wait to see what February has in store for our OBX history!

Outer Banks Beach, Surf, & Fishing Report: 1.26.12 – Feels Like Spring!

Posted on January 26, 2012

Outer Banks: 1.26.12 - Feels Like Spring in Kill Devil Hills

Good morning. Here’s your Outer Banks Beach, Surf, & Fishing Report for Thursday, January 26, 2012.

This video was shot at the Sutton St. beach access in Kill Devil Hills at 8:45 AM.

Wow! Gorgeous weather. Feels like spring. Bright sun, blue skies, light breeze, and 60 degree temps. Great winter day on the beach. And this weather will stick with us heading into the weekend.

Not much surf to report. Knee to waist swell. The wind is light at 5 mph out of the south this morning, but it will move around a bit today. So there won’t be much chance for the waves to clean up.

OBX fishing is slow. Some dog fish, tile fish, and skate in the area. Some good blue fin tuna catches out if Oregon Inlet. Unfortunately, no stripers.

Hope to see you soon. Have fun!

Outer Banks Beach, Surf, & Fishing Report: 1.25.12 – Gorgeous January Day

Posted on January 25, 2012

Outer Banks: 1.25.12 - Gorgeous January Day in Kill Devil Hills

Good morning. Here’s your OBX Moment of Zen for Wednesday, January 25, 2012.

This video was shot at the Hayman St. beach access in Kill Devil Hills at 8:20 AM.

Gorgeous January day! Bright sun, blue skies, light northeast wind, fresh salt air, and 50 degrees. Temps jump back to 60 to close out the week.

No surf.

Decent OBX fishing. Blue fin tuna offshore. Our friends at Rock Solid Fishing had a good day hooking up with tile fish yesterday.

Hope to see you soon. Have fun!

Outer Banks Beach, Surf, & Fishing Report: 1.24.12 – 60′s & Pretty Surf

Posted on January 24, 2012

Outer Banks: 1.24.12 - 60's & Pretty Surf in Kitty Hawk

Good morning. Here’s the Outer Banks, Beach, Surf & Fishing Report for Tuesday, January 24, 2012.

This video was shot at the Lillian St. beach access in Kitty Hawk at 8:45 AM.

Two days in a row of warm temps, fog, and surf. A little rain and fog to start today, but the sun should fight it’s way out. 60 degree temps and surf have carried over from yesterday with a light offshore breeze put of the southwest.

Temps will dip to the upper 40′s tomorrow but jump back to 60 to close out the week.

We had head high waves in the area yesterday. That swell will fade to waist high through today, the light offshore breeze is cleaning up the waves nicely. The tide is a bit heigh this morning, but late morning should see some fun surf.

The wind will switch a bit north this afternoon so there could be a bit of chop later today, but today could be the best surf this week. Hit it.

OBX fishing is slow. Still waiting on that striper bite. In the meantime, we’re getting good reports of blue fin tuna offshore.

Hope to see you soon. Have fun!

OBX Moment of Zen: 1.23.12 – Warm, Foggy, & Surf

Posted on January 23, 2012

Outer Banks: 1.23.11 - Foggy in Kitty Hawk

Good morning. Here’s your OBX Moment of Zen for Monday, January 23, 2012.

This video was shot at the Lillian St. beach access in Kitty Hawk at 8:30 AM.

Foggy start, but the sun is fighting its way out. Mild temps in the 60′s. Mild week ahead with temps 50-60, some spots of rain, but mostly sunny.

Big swell in the area today. Still a bit messy this morning, the light southwest wind should clean up the surf throughout the morning. Chest + surf today, and as the swell fades, waist + surf tomorrow.

OBX fishing is slow. Still waiting on the striper bite. The good news is we are still getting reports of big blue fin tuna offshore from the boats out of Oregon Inlet.

Hope to see you soon. Have fun!