March 28 , 2017

Hatteras Island Real Estate:
The case for a real estate market recovery

By TOM HRANICKA

When we look at real estate market statistics, very seldom do all indicators line up in the same direction. This often leaves us wondering what the actual trend of the market really is. Sometimes it helps to bring clarity to the analysis if we look at longer time frames to see what the data might be telling us.

The following charts display key indicators for the residential real estate market on Hatteras Island over the past five years.

This first graphic shows that the supply of properties for sale has declined while the number of sales has increased.

     



According to classic economic theory, when supply (properties for sale) declines and demand (the number of sales) increases, prices rise. Median sale prices of residential properties in the island’s real estate market are following this anticipated pattern.


        

When sales increase, and prices rise, the total dollar value of sales increases as shown in the next chart.


        


Based on this data, I think it is reasonable to conclude that the residential real estate market on the island is in the early stages of recovery from a prolonged buyer’s market.

The practical implication of this observation is that now is an opportune time for both buyers and sellers who have an interest in real estate on Hatteras Island. Prospective buyers can purchase the island home of their dreams before prices have risen too high, and sellers can market their properties to an increasing number of potential buyers.

We have all waited a long time for a recovery in the island’s real estate market to take shape. Like the bumper sticker says, “Life Is Good!”  Given the trends that we are seeing, now may be an appropriate time to evaluate how the purchase or sale of real estate on Hatteras Island may fit into your personal lifestyle and financial plans.



(Tom Hranicka is a broker with Outer Beaches Realty. Questions, comments, or suggestions for future articles may be sent to Hranicka at P.O. Box 280, Avon, NC  27915 or emailed to [email protected]. Copyright 2017 Tom & Louise Hranicka.  All rights reserved.
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