Is a critical shortage of Hatteras Island homes for sale ahead?
The market for single family homes on Hatteras island continues to boom with 120 properties under contract to be sold. However, there may be storm clouds on the horizon. When I recently checked, there were only 88 homes and seven condominiums available for purchase on the entire island. These numbers suggest that the euphoria in the real estate market over the past year may be changing in the not-too-distant future.
The following chart shows the textbook supply and demand curves representing the performance of the market during the past year.
In addition, following classic economic theory when demand exceeds supply, prices rise. The median sale price has risen from $325,000 to $390,000 – an increase of 20%
This is great news for sellers who are often presented with multiple offers on the homes that they have listed for sale. One of the challenges that sellers face in this market is that multiple offer situations are generating contract prices that may be ahead of appraised values. When this occurs, either sellers are asked to reduce the contract price; buyers have to come up out of pocket with the difference between the appraised value and the purchase price; or the parties reach some sort of compromise.
If you have considered listing a cottage that you own, now may be the time to consider selling while the real estate market is so active. The Outer Beaches Sales Team has the knowledge and experience to help you with the initial pricing decision and the subsequent contract negotiations. The Sales Team may be reached toll-free by phone at 866.627.6627 or by e-mail at email@example.com. We look forward to hearing from you
Tom Hranicka, Sales Department ManagerAssociate Broker
ABR, CDPE, CRS, GREEN, GR