Outer Banks August Housing Market & Jumbo Loans!

Hollywood Beach!

The Outer Banks Association of Realtors® Monthly Report is out for August.


With the Market Monitor showing that pending listings are creeping above 300 for the first time since April it appears that this fall will be a strong sales season.

Sales are starting to inch up with Lots / Land listings leading the way – up 44% for the year and up 60% from July 2012.

Here are the details:

YTD Sales

  • Overall – up 19% (1376 units vs 1159 units)
  • Residential – Up 13% (1059 units vs 935 units)
  • Land – Up 44% (299 units vs 207 units)
  • Commercial – up 6% (18 units vs 17 units)

Residential properties in the $200,000 to $299,000 range fell averaging 220 days on the market.

However there is movement on the upper end / luxury homes. Inventory has diminished, so competition is heating up among the houses on the market.

Price Range $400K-$499K $500K-$599K $600K-$799K $800K-$999K ≥1M
Units Sold 114 68 70 39 48
Average Days on Market 282 281 281 200 256

Currently there are still many great homes still on the market in the higher price range.

So how can you purchase a great home that is over the limit conventional loans?

I’m glad you asked!

 Jumbo Loans!

A Jumbo Loan is a single loan that is over the “conforming” loan limit, which is generally any loan over $417,000, but can vary by region as noted below. Jumbo loans are not backed by Fannie Mae or Freddie Mac (Government Insurers / Backers of conforming loans). Jumbo Loans are purchased by outside investors on the secondary market.

Higher Risk

Because there is more risk to the investor, the number of investors willing to take the risk is fewer and since Jumbos are tied to Luxury homes which are harder to turn over should the original loan holder default. The number of buyers who would qualify to purchase a luxury home is fewer than the number of buyers who would qualify for a more modest residence.

Higher Interest Rates

Because of the risks involved for the investor, Jumbo loans carry a slightly higher interest rate. These loans can be fixed rate or interest only. It’s best to ask which Jumbo Loan would work for you.

Super Jumbo Loans

These are loans for homes above $650,00 up to $20 million and higher.

“Conforming” Jumbo Loans

There are now “conforming-jumbo loans,” which are neither jumbo loans nor conforming loans, rather they are referred to as “high balance mortgages”. The loan amount still ranges between $417,001 and $625,500 for conventional loans, and $417,001 to $729,750 for FHA loans.  These are typically interest rates closer to those of conforming loans, with a slight premium.

A loan amount in this range will be slightly more expensive to finance than a conforming loan, but significantly cheaper than a jumbo loan.

North Carolina Jumbo Loan Limits by County

County name FHA loan limit
Fannie Mae-Freddie Mac conforming loan limit
Camden $729,750 $625,500
Currituck $458,850 $458,850
Dare $460,000 $417,000
Hyde $483,000 $483,000
Pasquotank $729,750 $625,500
Perquimans $729,750 $625,500


I’m sure you have questions – that is what I’m here for!

Now is a great time to purchase on the Outer Banks. Season is over – the crowds have thinned and there are a lot of great homes to choose from.

Contact me today and let’s get started!!