Well, while no one can predict the future—the real estate data in the Crystal Coast MLS generates statistics that show what's trending now and in the coming months whether you're looking to buy a home on the Crystal Coast of North Carolina or sell your beach home in Emerald Isle. Here are four trends that summarize the 2021 Emerald Isle Real Estate market.
#1. Home Prices Continue to Rise. The median list price of homes in Emerald Isle, NC is $475K, trending up 14.5% year-over-year and recent sales continue to support that trend.
#2. Homes Sell Close to Asking Price Homes in Emerald Isle sold for 1.79% below asking price on average making the Sale-to-List Price Ratio 98.21%. A year ago, the ratio was around 94%. Like home prices, this ratio continues to increase with more houses selling at or above asking prices. This is especially prevalent in 2nd row homes with views of the ocean.
#3. Median Price Per Square Foot. The current median listing price per square foot in Emerald Isle is $320. This number works best with homes in the 2,000 sq. ft. range. When square foot ranges exceed 2,500, the price per square foot decreases slightly.
#4. It's a Seller's Market. Emerald Isle is a seller's market, meaning there are many more people looking to buy than there are homes available. Without a doubt, inventory is exceedingly low. Back in August, 2018, our MLS had over 13,000 properties for sale. Today that number is under 6,000. It’s very difficult for homeowners to leave paradise once they have found it.
There's no question residential real estate in Emerald Isle and across the entire the United States is on fire. The latest Case-Shiller Index data showed an 11% year-over-year increase. And this data is only through January, 2021.. I would expect the numbers will be even higher in subsequent months. We've all heard anecdotes of housing shortages and ridiculous all-cash offers. The logical conclusion for many prognosticators is to call this yet another housing bubble like the one back in the aughts. I don't think this is the case. Here are some reasons why:
#1. Loans are mostly being made to those with high credit scores and sizable down payments, the exact opposite of the subprime housing boom.
#2. People have been pulling back on taking on a new mortgage because they have been worried about the effects of the pandemic on their finances. If more people eventually begin to take out loans this could actually lead to another leg higher in the housing market.
#3. The supply of existing homes on the market is as low as it's ever been on record going back to the early-1990s. There are fewer homes on the market because so many homeowners felt uncomfortable having strangers walk through their house while an airborne virus is spreading around the globe. With a new administration, an administration that takes the pandemic seriously and with vaccines available to every American, the number of homes on the market in 2021 could increase. And, the hangover caused by the last housing boom and bust caused homebuilders to pull back on the number of homes they built. The number of building permits and housing starts are down 26% and 37%, respectively, since peaking in 2006. Building permits and housing starts are off 30% and 43%, respectively since the housing bubble burst. In some ways I don’t blame these homebuilders but their reluctance to build is one of the signs things aren’t nearly as frothy as they were in the mid-aughts
#4. Prices are rising for the right reason Millennials are now the biggest demographic in this country. The oldest millennial is turning 40 this year. The millennial generation put off buying a house much longer than their parent’s generation because more of them went to college or the financial crisis or they just didn’t want to grow up as fast. And a combination of the pandemic, remote work and low interest rates have all pushed even more people to start buying houses.
Bottom line, Just because prices are rising does not automatically make something a bubble. Sometimes prices rise for good reasons. You may not like those reasons but that’s not the same thing as a speculative mania. Could this turn into a bubble? Sure, never underestimate the American desire to take things to excess. But it’s not one right now. To learn more about the 2021 real estate market in Emerald Isle and the Crystal Coast, go to www.EmeraldIsleHomesforSaleNC.com and sign up for my blog. Ready to buy or sell? Call me at 919-308-2292.Explore the video tab for my weekly uploads to my YouTube channel. Subscribe to my YouTube channel and receive free donuts at my Flip Flops Donut shop. Text your email address to 919-308-2292 and subscribe to my newsletter. My book, "Live Where You Vacation" is available on Amazon.com.
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