Discover Oak Island, NC
Beach/Vacation Properties

Discover Oak Island, NC



 

Real Estate Sales on Oak Island – The Coastal Phillips Analysis


The only location on the east coast where the sun both rises and sets over the ocean.

After visiting Oak Island to learn about the real estate market, and to enjoy the island, we were pleased to learn the market seems to be very strong and growing at a rapid rate. It appears that over the next 5 years this could be a hot spot for real estate activity.



According to an article in the State Port Pilot newspaper by staff writer Lee Hinnant, the number of new home construction permits hit a five year high in 2012.  In 2009 there were only 33 new home construction permits issued, by 2012 the number of permits had tripled to 99. What we find even more significant – the normal number of permits issued in the month of January is 3 but this year (2013) by Jan 15th they have already issued 13.

Two other interesting facts came to light as we were doing our research on Oak Island. Permits for minor construction, additions and upgrades to existing homes, also reached a five year high of 71 in 2012 and over the past five years the size of the average new home increased from 1400 square feet to 2000 square feet.

It appears several things are contributing to the increase in the market. We believe these factors are creating an environment that will attract investors to purchase property on Oak Island over the next few years.

Economy- We all know the slowdown in the economy has caused house prices to drop just about everywhere in the nation. Oak Island was effected maybe more than mos,t because many of the houses are second homes for folks in other parts of the country.  For people looking for a vacation home, the prices are the lowest they have been in many years.

Lot prices- In many cases, lot prices in 2005 were three or four times what they are today. We discovered that in 2005 almost all of the properties on Oak Island were on septic systems. Many vacant lots would not pass the perk test, making it impossible to build a home on them.  In recent years, the city has installed a public sewer system, greatly increasing the number of buildable lots on the island. This has also contributed to the lower price of homes. As this supply increased, the average lot cost went down.

Storm Readiness- Oak Island also has underground utilities, meaning that there are no power poles to blow down during a hurricane.  Residents told us they didn't even lose power during the last major storms. Also, the elevation of Oak Island is such that in many areas home owners are not required to purchase flood insurance. That is very unusual and desirable for a coastal community.

Until recently, the only access to Oak Island was by crossing a causeway on the east end of the island. If your home was on the west end of the island you had to drive the full length of the island, through the main business section, going to and from your home. A new causeway was recently opened on the west end of the island making it easy to get to and from your home no matter where it is on the island.

If you also consider that we currently  have the some of the lowest interest rates in history for both primary and secondary homes, we feel Oak Island has the potential to be a hot spot for real estate activity over the next five years.

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