Property Values in Brunswick County: What's Going On?

On November 15, 2010 the Star News reported that Brunswick County has seen a drop in property values of 20% in the last four years and updated their report on February 13, 2011 stating an overall tax base decrease of 25%. But what are the numbers really saying to potential buyers and sellers of Brunswick County? Let’s compare the fourth quarter of 2010 to the fourth quarter of 2009.

It is obvious that property values have fallen but the Brunswick County unemployment rate has also fallen from 11.5% during the fourth quarter of 2009 to 10.5% during the fourth quarter of 2010. This increase in employment means within the next 6-12 months more people will be in a better position to buy homes. This increase in property demand will help drive back up the property values as property supply decreases, getting us ever closer to a seller’s market instead of the buyer’s market Brunswick County is currently seeing.

Interestingly, the average list price in the fourth quarter 2010 is closer to the average sold price in the fourth quarter 2009. Unfortunately, this did not translate as well for sellers as I would have expected with the sold price to list price ratio and days on the market actually working against sellers. They received on average 9.87% less for their property than what they originally asked for. This ratio tends to work hand in hand with the days on the market. The general rule of thumb is the longer a property sits on the market, the lower the sold price will be, effectively killing your property value. This is obvious in this case where homes sat on the market 3.13% longer and sold for 11.51% less than during the fourth quarter 2010 than the fourth quarter 2009.

What Does This All Mean?

The bottom line is simple. The buying frenzy spurred by the home buyer's tax credit has ceased. The bidding wars of 2005 won’t be seen anytime in the near future. But take heart because real estate is still the best long-term investment someone can make. Over time the market will see peaks, valleys and plateaus but overall the trend is for property values to increase over the long haul. Buying a home now means you will see the value of your home increase and selling now may mean you will not get what you hoped for, but unless you purchased in the last 5 years, chances are you will sell for higher than you bought.

Interested in reading more about Brunswick County's market? View our blog discussing the Southport, NC market from last week!

It is important to note that this information was gathered from Brunswick County Association of REALTORS® (BCAR). When viewing other information pulled by other sites or people, the numbers maybe higher or lower depending on which areas of Brunswick County were pulled and where the information was gathered from. Also, the disclaimer on BCAR data is as stated “All information deemed reliable, but not guaranteed.” For more detailed information, please contact one of our Brunswick County REALTORS®: Cheryl Kuntz, Mike Tedder, and Jack Vereen.