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Market News and Buyer Trends on the Outer Banks!

The Outer Banks Association of Realtors® has released their monthly housing report for October and it’s not too bad. Residential homes are up again this month.

Outer Banks YTD Sales in Units

Overall – up 21% (1733 units vs 1429 units)
Residential – Up 16% (1344 units vs 1157 units)
Land – Up 48% (368 units vs 248 units)
Commercial – down 13% (21 units vs 24 units)

Most of the homes sold were in the $200K and $299K range averaging 207 days on the market. The chart below show the sales broken down into the other price brackets.

Price Range

$0 – $99K

$100K-
$199K

$200K-
$299K

$300K-
$399K

$400K-
$499K

$500K-
$599K

$600K-
$799K

$800K-
$999K

≥1M

Units Sold

99

272

372

219

133

74

82

43

50

Average Days on Market

241

181

207

247

289

283

261

197

186

Residential inventory on the Outer Banks declined 4% from 2011. Distressed property sales on the Outer Banks have declined significantly over last year by 7%. Currently only 26% of the properties listed on the Outer Banks are distressed. This is very encouraging!

Active residential listings fall in the following price ranges:  Price Range

Number of Listings

Average Days on Market

$1 – $99,999

65

271

$100K – $199K

266

244

$200K – $299K

366

247

$300K – $399K

310

244

$400K – $499K

226

265

$500K – $599K

178

324

$600K – $699K

109

237

$700K – $799K

56

343

$800K-$899K

50

217

$900K-$999K

37

226

>$1M

140

395

 Current Buyer trends

Recently the National Association of Realtors® have published their survey showing national buyer trends for 2012. Previously investors made up most of the buyers, currently 65% of the buyers are married couples. Just two years ago, only 58% of buyers were married. Single buyers comprise of 16% women, 9% men, 8% unmarried couples.

In the report, Paul Bishop, NAR vice president of research, said the study is painting a clearer picture of the impact of mortgage limitations.  “We’ve known for some time that stringent mortgage credit standards have been holding back home sales, but these findings show single buyers have been hurt the most over the past two years.  Total home sales would be 10 to 15 percent higher without these unnecessary headwinds,” he said.

“The continued growth in married couples as single buyers shrink demonstrates that households with dual incomes are more successful in obtaining a mortgage.  However, given the historically favorable housing affordability conditions, most single-income buyers could also purchase a home and stay well within their means, if lending requirements were more sensible,” Bishop said.

There are more first time home buyers over last year, which is critical to the housing recover. First time homebuyers help existing home owners to sell their homes to move on.

Underwater homes are gaining value and becoming “less underwater”. Repeat homebuyers with a home under water would tend to make smaller down payments, if they could sell their homes at all.

The report went on to say first-time homebuyers used many avenues to make up their down payments. “Forty-six percent of first-time buyers financed with a low-downpayment FHA mortgage, and 10 percent used the VA loan program with no downpayment requirements.  Forty-two percent cut spending on luxury items to buy their first home, 35 percent cut spending on entertainment and 27 percent cut spending on clothes.”

According to the 2012 National Association of Realtors(r) recent survey, buyers now use a wide variety of resources in searching for a home.

Buyers now use a variety of ways to search for listings:

90 percent use the Internet,
*87 percent use real estate agents,
53 percent yard signs,
5 percent attend open houses and
27 percent review print or newspaper ads.

*91% of homebuyers who used the internet for their home search, purchased through a real estate agent. 71% of the buyers who didn’t use the internet for their home search still used a real estate agent.

HOWEVER, most buyers found their agents through a friends’ referral.

For sale by owners only accounted for 9% of the transactions sold, which is down from the 10% market share last year and substantially down from the record setting 20% set in 1987.