Sales Blog

With all of the negative press reports that real estate is receiving in the national news media, it is easy to take the commentaries at face value without delving more deeply into the broader picture. While the information that is presented is statistically accurate, it focuses on short term data, and it usually does not reflect the familiar axiom that "all real estate is local."

With this in mind, I recently took a look at how residential real estate prices on Hatteras Island have compared to the performance of stocks over the past eleven years. As a surrogate for the stock market, I used the S&P 500 index. The chart to the right shows the ups and downs of average residential prices on the island and the S&P 500 each year between 2000 and 2010.

The bottom line is that our residential sale prices have experienced an average annual growth rate of 7.2 percent vs. 2.4 percent for the S&P 500 since 2000. If we look at the absolute change in value, the average residential sale price on Hatteras Island has increased 74.9 percent from $200,558 to $350,835 compared to a 14.4 percent decrease in the value of the S&P 500 index.

All things considered, even with the declines of the recent buyer's market, the long term price appreciation of vacation homes on Hatteras Island has proven to be reasonably attractive. Interestingly, the average annual growth in unimproved lot prices has been almost identical to residential price performance.

If you or someone you know has considered purchasing a home or lot on the island, don't miss out on today's unusual convergence of reduced prices, historically low interest rates, and a good selection of properties. Contact our Sales Team today at sales@outerbeaches.com.