Although the national economy has shown only slight up ticks throughout the year, here in the Topsail real estate market, we seem to be doing much better than a few years ago. There are numerous indicators we can use to show the condition of our island real estate market although we will namely be looking at absorption rates.
An absorption rate is a term used to evaluate real estate markets. The rate answers the question that if no new listings come on the market, how many months will it take to exhaust the current supply of listings? A balanced market’s rate should be typically between 5 to 7 months.
In the current economy although, its very hard to find a market with such a “quick” rate.
Utilizing data from the Topsail Island MLS, we have found that the island real estate market comprised of Surf City, Topsail Beach and North Topsail Beach residential and multi-family units is approximately 14.36 months. Again, this means if no new listings come on the market, it will take the market just over 14 months to exhaust our supply of sales listings.
Yes, 14 months is a long time but we are EXCITED!
Just a couple of years ago, the absorption rate was as much as 2 and half years.
So it is very easy to see that our market activity has increased exponentially.
Does this mean we are at the “bottom” of the market?
Possibly. If this trend continues, the supply will decrease resulting in the demand increasing which of course, raises the price or value.
So how do we know this for sure we are at or near the bottom?
There is no 100% way to tell until the price actually starts increasing but then we have missed an opportunity for some great deals at a fraction of the property’s potential value.
But the greatest indicator of when to buy is the popularity of the area itself. Coastal properties tend to remain popular even in downturns and typically bounce back before other areas.
The 2012 vacation rental season at Topsail appears to be one of the best in many years with families visiting from all over our country and even Canada & United Kingdom!
With its increasing popularity, unbelievably low interest rates, less stringent financing, Topsail can prove to be nothing but a great investment right now and tomorrow!
Chris Rackley 910.328.5211- Lewis Realty Associates, Inc.- Topsail Island Real Estate, Topsail Island MLS and Topsail Island Vacation Rentals – We Know Topsail Island . . .We have Been Here Over Forty Five Years! Serving real estate needs in Topsail Island, Surf City, Topsail Beach, Sneads Ferry, Holly Ridge & Hampstead. Our assortment of Topsail Island Vacation & Long Term Rental properties will fulfill your needs whether staying on the coast for a week or a lifetime.