Should you purchase your home on the Outer Banks before 2014?

Kill Devil Hills, NCFall has landed on the Outer Banks, homes are still selling and as I mentioned in a previous post, you can continue to sell throughout the winter months through the first of the year.

Generally this time of year, many sources are urging you to purchase your home now rather than after the 1st of the year – and it sounds like a ploy to sell more homes on the Outer Banks.

Well, as much as I hate to say it, you may really want to consider buying a home before the clock strikes midnight on December 31st.

Interest Rates

Mortgage costs have gone up 14% in just 3 months! Just last May, interest rates were around 3.3% on a 30 year mortgage and currently they are hovering over 4.5% which increases your monthly mortgage payment almost $200. That’s almost $200 more you’re paying for the same house now than you would have in May and it’s only to go up from here. When I mentioned earlier that these are HISTORICALLY low interest rates …. It wasn’t that long ago a FABULOUS interest rate was 8%!!

Because you may be paying more for a home with the increased interest rates, which changes the dynamic of home prices even though home prices are lower. Your buying power has just been decreased. And home prices have been and will be increasing. So the longer you wait the less house you’ll be able to qualify for.

Check out this illustration from “Keeping Current Matters” – it shows exactly why waiting will cost you so much more in the long run.

Affordable Homes

Owning your home is by far more affordable than paying rent. AND homes, though going up, are still affordable, especially on the Outer Banks (see the charts below).

NAR housing survey infographic 2013

Click here to see how much difference a few years can make with the full Affordability Index from the National Association of REALTORS®.

The Outer Banks is seeing some movement in the market, especially with the sale of raw land and commercial properties. Lots / Land unit sales are up 9% for the year and commercial sales are up 18%. Residential unit sales; however, are down by 2% and total Volume Sold for all three classes is down 6%.

Check out the charts below for more details of the real estate Market on the Outer Banks:

October OBX market report 1.jpg
October OBX market report 2.jpg
October OBX market report 3.jpg
October OBX market report 4.jpg

Full October Outer Banks Market Report

If you’re not sure whether or not now is a time to purchase your home on the Outer Banks, give me a call. We’ll go over different options and scenarios to see which may be best for your situation. You may be surprised how easy it may be to buy now on the Outer Banks.

Follow me on Facebook!!

All above information has been provided by the Outer Banks Association of REALTORS®.