Jim, I live in Jersey, and have been going to Corolla for many years. I have watched prices rise to unrealistic levels. I believe Corolla is starting the process of imploding on itself. Why ... if you add up ALL your costs in one column (and don't forget the 18% cost to manage your rental) and all your potential income in the other column, even after tax breaks you will still be digging into your wallet to cover costs, and you will see that this area is way over-extended. Why... because of all the "easy" money from wall street that allowed for easy Jumbo loans, is now gone. And Obama's refi money is not available to rental and second homes. Take a look at all the unsold homes and lots on realtor.com or any of the islands realtor websites, and you will see years of over priced supply in the pipeline. IMO it is way cheaper to rent down there than to own. Remember the realtors moto, "it is always a great time to buy". Unfortunately if they don't sell, they don't get paid. IMO there is still way too much downside in this market. Look at the prices for the foreclosures. Everyone that bought between 2001 and mid 2007 is under water. IMO you could see another 20% drop, add to that the realtors 6% vig and you have an awful deep hole with an awful long timeline to break even.

Good luck, but I think doing nothing (renting)is the best option at this time

Hello Jim,

Now is a GREAT TIME to buy an investment property. The Summer rental season is in full-swing and we have the traffice here to prove it. The Fall is typically when buyers come back to the Outer Banks to invest in homes and get them ready for the next year Summer season. Most renters pre-book for the next year upon checking out.

Go my website at http://www.lax2obx.net to find out more about Bank Owned and Short Sale properties currently available. Feel free to contact me at la2obxre@aol.com for more details.

Renee Robinson
1.252.619.1052

It looks like you might want to be in the Corolla area. If so, be forewarned that the area has been labeled as a "declining area" by the banks. This means you might need as much as 35% down payment. If you have this much money for a down payment then you can use the situation to your advantage and pick up a good deal.

There are 22 short sales and 5 foreclosures currently in Corolla. If you would like I can email them all to you to check out. mailto:greg@outerbankshome.com

Search all Corolla real estate for sale at http://www.outerbankshome.com/search-mls.html

To piggy-back on the other answers, it is always a good time to buy investment properties! Just remember the investment motto: buy low, sell high. If you find a property that is affordable and has a lot of income producing potential and/or equity increase potential, buy it! Make sure to do your homework and look at all of the cost angles: taxes, insurance, vacancy rates. Now is the time to be a kid in the candy shop, just don't leave there with a stomach ache!

Jim,
Our take on your question is tha any time is a good time to buy provided it is your perfect homr, inyour ideal location, and the property is being offered at a price that you can't afford to walk away from.

The biggest mistake potential buyers make during times like these is to remove themselves from the hunt by no actively seeking purchasing opportunities. There are many great opportunities in today's market but they need to be identified.

Good luck

yes, we certainly are affected, especially being a second home market. However, I haven't seen so many good buys with these prices on the OBX for several years! it is a great time to get in!
Sheila Williamson
RE/MAX Ocean Realty
252-202-4729