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Existing Home Sales Jump to 2-Year High

As I posted on my Facebook page earlier, ‘The National Association of Realtors said on Wednesday that existing home sales increased 7.8 percent last month to an annual rate of 4.82 million units last month,” reported CNBC news.

Even though some of the areas of our economy are a little sluggish, the brightest spot is the area of housing.

“Today’s data are another indication of improvement in the U.S. housing market which, for really the first time post-recession, is becoming a positive for economic growth,” said Andrew Grantham an economist at CIBC World Markets in Toronto.

The number of homes sold and the median price for homes went up Nationally in August 9.5% from the previous year.

The number of homes which sold and closed this year on the Outer Banks increased by 10% over last year. However, the median price of homes on the Outer Banks haven’s quite seen that increase the nation has – yet.

According to the Outer Banks Realtor Association’s Market Report for August 2012, the median price home on the Outer Banks is $285,000 down 2% from last year. However, the median condominium home price has INCREASED over last year by 11% and is $200,000.

Now on the surface, this looks horrible and that we are not with the national average. But not so fast. If you look at our market on the whole and see where we are coming from, we are in line with what is happening on the national housing market – our point of rebound was further back.

If you take the median home price from 2009 when it was $531,188 in Corolla – down 11% over 2008 to now where it is $515,050 only 2% lower than the previous year, the free fall of home prices has slowed considerably. However, distressed homes were a huge factor in the median home price dragging down the median price. Currently there are fewer distressed homes on the market with the trend to continue. With fewer distressed homes on the market, home prices on the Outer Banks market will gain strength.

Kitty Hawk is seeing a 9% increase over last year with the median home price is $286,500. In 2011 the median home price was $261,875 – 12% LOWER than 2012.

Now, if you remember, 2010 we had home buyer incentives which did make an impact of the housing market for that point of time. When the incentives ended, home prices and sales took another tumble – we are recovering from that.

The lower priced homes are recovering first and faster. But it will trickle up and we will see homes sales strengthening and home prices getting stronger.

Now, what can you take away from all this? I would suggest that if you want a great home at a great price and with HISTORICALLY low interest rates … buy now! It’s not going to get any better than this – and it’s a great time to buy on the Outer Banks because is no longer season.

And if you are thinking about selling your home on the Outer Banks, give me a call – we can go over what would be the best price for your home in this market. Buyers are going to come out and they are going to want to see fresh homes on the market. Let’s talk.