Wilmington North Carolina and Surrounding Beaches Real Estate Newsletter…
Yes it's true, the national housing crisis is having an effect on the Wilmington area, but when compared to national data, Wilmington is one of the best fairing cities in America , and I can prove it. In the past I cited a few sources to back up what I said, in this update, I have compiled tons of research and articles that explicitly explain why the fundamentals of the Wilmington NC economy have us poised for a massive boom after our global economy stabilizes. As of right now, the average home price in Wilmington is slipping, but given our global economy, it's surprisingly strong. For the entire MLS area, mostly New Hanover County , the average sales price is only down about 6% from the highs. Almost all of that occurred in the last 5 months.
For my buyers: I speak to many buyers, and they are literally upset about home prices in Wilmington . While I have to admit sellers have been slow to come around, don't expect to hear stories of massive foreclosures such as in Florida , and California . Wilmington has far too many amazing attributes to slow down too much. That doesn't mean that it's not
a good investment.Sometimes you have to pay a little more to be the best. I can cite 100 different articles forecasting huge growth for Wilmington and NC, so be careful about sitting the sidelines for too long. When it breaks loose, it is going to boom! I have said it before, and I can't emphasize it enough. While prices may come down in the next year or two, a great deal that fits your needs typically only comes around a couple times a year. It will be Spring of 2010 soon. ( This is when I forecast Wilmington pulling away from the rest of the country and making huge increases all around ) Even in light of a full on recession, I doubt you will see the average price drop much more than 15% in this area. Of course on Carolina and Kure Beaches homes are selling for almost 100% less than they did three years ago . This is the best place to find amazing deal s, as these owners are victims of a HUGE, classic real estate bubble. Wilmington is currently being effected by a global slowdown, and this will certainly benefit the buyer for at least another year, but don't expect to steal a cheap home in this area. Affordable housing is nonexistent in Wilmington , and cheap homes will barely depreciate. The million dollar homes will actually suffer the most , and therefore present the best opportunities.
For my sellers , don't make the mistake of thinking this problem will blow over quickly. If there is one thing I know about housing, it's that it's seldom a quick process. You may have noticed that I said prices could still fall 15% from their highs a year ago. Especially for higher priced homes, that is still a substantial figure. I have said it before, if you think you may have to sell anytime in the next 3 years, I would sell now. If you think you may have a problem making your payment at some point in the next 3 years, then you will want to sell now, and for a competitive price. Don't make the mistake of chasing the market down. I have attached a great article at the bottom about a couple of homeowners who held out for too long.
Reasons why Wilmington is poised for a huge recovery in the next few years.
Huge improvements to the Wilmington ports. With the weak dollar, and Asian growth, exports have increased substantially around America . Through recent upgrades, the Wilmington Port is reaping great rewards as a result. The Milken Institute's study of Best Performing Cities in America cited this as the #1 reason for ranking Wilmington at #2 in the nation in terms of growth and prosperity. See the attached report at the bottom.
Substantial cut backs in building permits and new homes (Supply) due to sewer moratoriums, and decreased demand. Building permits are down more than 20% on average compared to last year. See the attached report at the bottom.
North Carolina is ranked in the top 3 according to several studies of the Best Business Climates in America . Strong business growth from Asheville , to Charlotte , to Raleigh , on over to Wilmington are making North Carolina one of the hottest spots in the world. See the attached reports at the bottom.
Several cities in North Carolina have been named as the most desirable places in America to live. With a huge part of the Wilmington homeowner population living in other NC cities, this is great news.
General Electric and the increased spending on nuclear energy have already, and will continue to have a huge impact on our local economy. In the process of hiring 900 new employees, I have personally worked with GE relocation employees. Their growth will also substantially contribute to the local tax base.
Stock Tip: I don't normally do this, but PPDI is a stock to look into. In fact I never do this. While researching a proposed expansion, I came across several articles stating that they recently reported 22% higher than expected NET INCOME so far this year !!! Their stock, hasn't seemed to react yet. The expansion is a proposal to add another 400K sqft high rise to their world headquarters downtown. This will employ nearly 1000 more highly educated professionals, and doctors.
The Wilmington Convention Center is going to have a profound effect on this entire area in my opinion. Although it coincided with a national housing boom, the Marriott and Convention Center is what eventually made Carolina Beach a well know beach for 2 nd homes. Carolina Beach experienced price increases of nearly 300% on many properties. I spoke to hundreds of people who found out about Carolina Beach as a result of an event, or simply lodging at the new Marriott, and this is what drove prices so high. I expect the Wilmington Convention Center will also open this area up to hundreds of millions of people across the world as word of mouth spreads about our world class location… Carolina Beach will also be adding another major player to their skyline as well. Hilton is in the process of building a world class hotel in good ol Carolina Beach .
The convention center alone will employ over 1200 people, bring tens of thousands of additional vacationers a year to our area, and add 1.5 million dollars a year to our tax base. The real benefit will be the world wide exposure. In addition, the unbelievable Hotel Indig o that will service the convention center will be a major employer as well.
Last month in Wilmington , the average days on market was 28 days longer than last year. On average in 08 it's been about 15 days longer. While you can't judge from one month, it is still a downward acceleration. The Wilmington market is obviously softening, and it could continue for well over a year. However, Wilmington residents have proven their ability to ride out a storm.
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