· The Mid-Currituck County Bridge project completion date will be postponed…again! If you’ve been around the Outer Banks any length of time, I’m sure you’ll agree this prediction really needs no further explanation.
· 2012 will see an increase in the number of sales over last year by 15%. In 2010 we saw our first signs of hope when number of sales closed at 25% more than 2009. In 2011 we kept pace, closing out the year at less than 1% difference. I believe 2012 will go up due to increasing confidence and the unbelievable deals offered here.
· 2012 will prove to be the best time to buy in 2 generations! If you’re on the fence and waiting for the perfect moment to buy that beach home, it’s here! There are so many properties that have excellent rental returns, we have the lowest interest rates and prices unseen since 2000! You’ll be saying “shoulda, coulda, woulda” if you wait to invest.
· Interest rates will rise mid-year. As consumer confidence builds and nationally the housing market continues to see good news rates will rise as that goes hand in hand with greater housing demand.
· Building starts on the Outer Banks will go up. Lot sales have taken the greatest hit in value. We’re starting to see lot sales go up in double digits! People are realizing with today’s extremely low lot prices, they can build for about the same as buying an existing house. For several buyers this year that will be an appealing option!
· 2012 will be another record year for rentals. If you rely on that income, good news…you’ll get it this year. As airline fees continue to go up and the Outer Banks becomes an even more popular wedding destination we should be packed to the brim for about 20 weeks this year.
· There will be a small drop in the number of Bank Owned homes for sale. We have had a steady inventory of distressed homes at around 14% each month. In addition we closed out 2011 with an average of 36% of closed sales each month being a distress sale. That dropped 2% from 2010. While distress inventory isn’t going to go away anytime soon, we see no evidence that it will rise and more evidence we could see a percentage or two drop for the second year in a row!
· Home values will drop another 5% to 7%. The median home sales price dropped 6% in 2011. With inventory levels out of control and still a good number of distress sales, sadly we aren’t out of the woods just yet. Continue to plan on another 6 to 7 years before home prices will be measurably higher than they are today.
· Your Dare or Currituck County Tax Assessment will be re-adjusted in the next 12 months and you’ll probably see a 25% to 30% drop in the Tax Assessment. Now, don’t get too excited yet. Once that happens you’ll see the battle begin to raise that Tax Rate so that your actual tax bill doesn’t change too much. The budget hasn’t changed that drastically that the County can give you a 25% drop in your property taxes. Now, considering taxes here for a million dollar property are around $4500, that’s really not much to complain about!
My last prediction is that for my personal business, this will be my best year ever! I have so much enthusiasm about this market I can hardly control myself. I know there will be tough conversations with several sellers this year and tough negotiations with buyers as well. All in all, I feel it’s a great time to be an American and I love watching our country fight to get back to an economy we can all enjoy again!
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