Market Conditions - June 5, 2006 by Carla L. Davis
Baby boomers continue to invest in second and vacation homes, despite the seeming uncertainty of some real estate markets, meaning that some vacation destinations continue to have a healthy 2006. Hatteras Island, North Carolina, is just such a spot. Locals describe the region as tranquil and quaint, a city rich in history. Cottages line the coast in this city where generations come and stay. Many smaller cities scatter the area, including Avon, which accounted for 33.1 percent of the total sales volume on Hatteras Island so far this year. Hatteras Village accounted for 19.7 percent. The average selling price for an oceanside home in Avon was $692,000, though a lot sells for around $230,000. Hatteras has seen a slightly more expensive market, with the average selling price for an oceanside home being $797,000. Lots are even more pricey, ranging from the low $400,000's for soundside to the mid $500,000's for oceanside. The island in general has seen more than healthy rates of appreciation -- with 2005 rising from 12 to 16 percent. Our experts report, however, that "since January, the number of residential properties listed for sale has risen 68.7 percent, and the number of lots available for purchase has increased 47.8 percent. This is the first time supply has outpaced demand. The reason? Fear over inflation and also fear of the impending hurricane season. But overall this market remains healthy, perhaps thanks to the many boomers that just can't stay away. | 
