The real estate news these days seems to be dominated by the surge in residential sales, both locally and nationally, as well as the drastic reduction in the number of homes available for purchase. Driving around the island, there also appears to be a large amount of construction taking place – something we have not seen for quite a while. In this month’s article I thought it would be interesting to see how our anecdotal impressions compare to the actual statistics.
One of the underlying impressions might be the concept that new single-family building permits closely follow patterns that are similar to undeveloped lot sales. However, the following chart shows that while single-family detached building permits sometimes follow patterns that track with lot sales (ex. 2016), this is frequently not the case.
Interestingly, lot sales and the number of new home building permits are just about the same today as they were in 2012. During the past ten years, an average of about 36 new single-family building permits have been issued each year.
So, how do we resolve the apparent difference between what our eyes seem to be telling us and the story the numbers are showing? The answer lies in the relative volume of the different types of permits that are being issued. The Dare County building permit records, renovations, repairs, and additions, are playing the lead role in construction projects, when compared to the number of new homes built. Given the aging of the current inventory of residential properties on the island, this concept makes a lot of sense. As homes get older, sooner or later, roofs, decks and siding need to be replaced. As a point of reference, between 1980 and 2009 almost 4,000 homes were built on Hatteras Island.
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Tom Hranicka, Sales Department ManagerAssociate Broker
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