However, the real estate market has lost some of the steam it had earlier in the summer. We were well ahead of last through the end of July. However, sales have dipped since early August. Unit sales from the first of August until late October when this is being written are 10% less than they were a year ago.
That leaves us about 5% ahead of last year, but that might be hard to maintain through the end of the year unless things pick up.
However, in some specific areas certain price points are a little more challenging to find. Finding a nice home under $200K is much harder in the western side of Carteret County today than it was a year ago. This is happening in spite of a large number of homes on the market.
Also if you are looking for lots of Bank owned or short sale properties, you will not find them in western Carteret County. A MLS search today revealed only two properties in that category and one of those shows as “sale pending.”
Plenty of sellers are still having a hard time pricing their properties. The result is that their properties stay on the market for a long time. The emotion of letting a home be sold is a challenge even in the best of times, and during a sustained drop in prices, it becomes very difficult. Now there is the additional challenge of builders coming up with new homes that have the right mix of features and usually only lack the maturity of an established neighborhood. Average market time has dropped recently, but there are still homes that stay on the market for months.
A neighborhood premium will only bring you so much. If your home is also smaller, not as open as new homes, and has not been updated in years, then it has to be priced accordingly.
It now seems that buyers with very good credit are having no trouble finding reasonable financing. However, people with less than perfect credit are finding many challenges.
Buyers that are coming to the market are expecting a lot of value for their dollars. Often they are willing to press for a discount even if it means that they might lose the house of their dreams. It is function of lots of property being on the market.
Make no mistake homes are selling, the best ones are not going unnoticed. Usually the ones selling the quickest are the most aggressively priced ones. Often there is competition for those properties, while over-priced ones have a hard even getting a showing.
While it is not absolutely necessary to have a completely updated property, it certainly helps to have one which has not been unchanged for the last twenty years. You can sell one of those, it just has to be priced so that the buyer can send some money on it.
Some of the following market characteristics are unique to Carteret County.
We have few people moving here for any other reason than personal choice.
We have reasonable priced single family housing starting at just over $170K.
That along with a strong rental market and a substantial number of retired people provides some stability to our market which is missing in many markets even in NC.
Even here we have seen some foreclosures in the last few months. They have pressured prices.
Fortunately those foreclosures have been tempered by the fact that we have started to see more buyers from outside the area.
We have competitively priced homes in the area, but there are few buyers actually able to move to the area.
Potential buyers wanting to move to Carteret County outnumber real buyers at least three to one. Many potential buyers are unable to sell their home or cannot find the type of job that they need to make a sensible move.
This buyer gridlock is compounded by a number banks demanding that homes be sold before a second home is purchased.
What are the recommendations for buyers and sellers as of early July 2010?
The market is not going to quickly turn around, and likely it will take you longer than expected to sell your property. Given the large number of days on market before selling, you might as well get started.
Selling your property in this market requires that you pay special attention to prices of similar homes that have sold and the condition of your home. In addition buyers are more educated about home prices than ever. They can also afford to be picky.
Considering that Carteret County’s most recent tax evaluation was done in 2005, the time of peak prices, and that prices have declined since then, you should not be surprised to find out most buyers will start with an offer well under your tax value.
Selling in this market requires patience, tolerance, and willingness to accept a realistic price for your home or land. This is not a market for those whose feelings will be hurt if they get a low price offer.
You likely will not see interest rates this exceptional again in your lifetime.
There are some wonderful buys already gone. The idea that the best buys will be still there for those who wait the longest does not often play out in the real estate market.
Properties continue to sell, and it should be fairly obvious that the best deals will be bought first.
Taking the time to look now, even if you purchase is several months out, will allow you to make a much more intelligent purchase.
Trying to play the timing game with a complex market like real estate is almost impossible.
The best you can do is buy when you need to and sell when you have to while allowing that to be tempered with as much local knowledge as possible.
I plan to regularly update my analysis and recommendations on the Carteret County real estate market.
While my comments are no substitute for your personal investigation, if you read this newsletter and scan through the properties that have sold using the link on my website, you will have a pretty good idea of what is happening.
-David Sobotta October 26, 2010
Tables from Carteret MLS as of October 26, 2010