April 5, 2010



Recognizing that the first quarter is usually one of the slowest times of the year in the annual cycle of the Hatteras Island real estate market, it is encouraging to see that 2010 is off to a good start. While the final first quarter numbers for this year will not be available for a few weeks, the preliminary sales data for both residential properties and unimproved lots are well ahead of results for the first three months of last year.

If you recall, the theme of the market during 2009 was “more sales at lower prices.”  So far this year, we are seeing “more sales at higher prices.”  The number of residential sales was 83.3 percent higher in the first quarter of this year compared to the same period last year, and the number of unimproved lot sales increased 166.7 percent on a very small number of transactions – eight vs. three.


In addition, the average selling price of residential properties between January and March was up 4.0 percent over the same time last year, and the average selling price of the lots that have been sold this year is up 37.5 percent.

We are all keeping our fingers crossed that these trends will continue, signaling that the real estate market may indeed be on the first leg of a new growth cycle.

As always, there are still reasons to temper our optimism with a prudent dose of caution.  For example, the number of foreclosure filings during the first quarter was 76.2 percent above the same period in 2009, and the forecasters say that we can expect a surge in the number of foreclosures as the year progresses.

If you or someone you know has thought about owning a place at the beach, now might be a good time to start thinking about converting those dreams into reality.  There is still a large inventory of properties from which to choose; interest rates remain near historical low points but are expected to increase as the year progresses, and sellers are willing to consider reasonable offers.

In some cases, the attractiveness of current prices is hard to believe.  For example, there are nine oceanfront homes for sale on the island that are priced between $450,000 and $600,000. At these price levels, buyers can purchase the house and the lot for basically the value of the lot.

There is a real estate adage that we only know when the bottom of a market cycle has been reached after prices start rising again.  My Realtor colleagues and I are hearing more people saying, “I don’t know if the market bottom has been reached, but I think it is close enough that I don’t want to miss out on the next upward cycle.”  Give it some thought – this may be the opportunity for which you have been waiting. 

(Tom Hranicka is an associate broker with Outer Beaches Realty. Questions, comments, or suggestions for future articles may be sent to Tom Hranicka at P.O. Box 237, Avon, NC  27915, or e-mail to hranicka@hatterasisland.com )

Copyright©2010 Tom & Louise Hranicka.  All rights reserved.

Comments are always welcomed!      Subject :      Name :  (required)      Email :  (required, will not be published)      City :   (required)    State :   (required)      Your Comments: May be posted on the Letters to the Editor page at the discretion of the editor.