Outer Banks Property Management

With concerns over the economy looming, it looked as if the “shoulder” or beginning of the Outer Banks off season would be tremendously slow.  Well, it has not turned out that way.  While it definitely may not be as crowded as some previous years, and there has been a week and a half of northeast winds and rain, reservations are still being made.

It does seem the OBX Marathon will be a huge weekend again.  IF the trend continues, it looks like Thanksgiving Week should be a booming week for the OBX.  Revenues may definitely be down in restaurants and hotels but this off season definitely looks to be shaping up much better than was expected.

How will gas prices affect the Outer Banks in 2008?

A very serious concern of many Outer Banks residents and business owners has been the rising price of gasoline. With the majority of the Outer Banks businesses reliant on tourism, a major move in gasoline prices are always a concern.

With Memorial Day just passing, it seems the rise in fuel prices will have very little negative effect.  If Memorial Day weekend was any indicator for the entire summer, it actually appears as if the 2008 season will reflect the strong 2007 season.

Several local business owners and managers I spoke with early in the week reported having strong Memorial Day sales. A couple even hinted that this was one of the strongest Memorial Day weekends in recent years. Some rumors floated about some of the businesses having higher sales than any day of last summer.

My personal thought is that most Americans are looking at vacation destinations that are closer to home. The declining value of the US dollar abroad will force many Americans to vacation in the states. Besides the decline in purchasing power of the dollar abroad, airline prices have increased in response to the increase in fuel costs. Both of these factors normally lead to increase tourism for US destinations. How this all affects us here in the Outer Banks remains to be seen.

Follow-Up:

After spending the last couple days talking to vacationers, it seems as if the gas prices are not affecting their decisions to visit the Outer Banks. I have to believe that without a dramatic price increase, tourism along the Outer Banks will remain strong.

Should we save the beach?  Thoughts on Outer Banks Beach Nourishment

     This issue is one that is close to many vacation home owners.  This issue has many on both sides of the fence.  I, like many, have an opinion on beach nourishment.  I will save my opinions for another time.  Right now, I am looking to present some facts about beach nourishment.  

     Both sides of the argument have very valid points.  I always try to look into both sides of an issue before making a decision.  Below you will find some articles for and against Outer Banks beach nourishment.  If you have an opinion, feel free to leave a comment.  Let me know where you stand. 

Outer Banks Beach Nourishment Articles:

NOAA Beach Nourishment

NOAA Beach Nourishment II

Outer Banks BeachHuggers

ScienceBlog

NCGS on the Outer Banks

Dr. Beach on North Carolina

Beach Nourishment Questions:

Many wonder if beach nourishment is possible with the prospect of sea levels rising? 

Is beach nourishment a viable long term solution?

What are the long term costs associated with nourishing the beaches of the Outer Banks?

Will beach nourishment work on the Outer Banks?

Where will the revenue to pay for beach restoration come from?

The Mid Currituck bridge.  Boom or bust for the Outer Banks?

The Mid Currituck bridge proposal has been a polarizing issue along the Outer Banks.  The bridge is becoming more of a reality everyday.  Since the bridge is going to happen, what must be examined is the potential impact the bridge will have on the Northern Outer Banks.  The areas that will be most greatly impacted will be Duck and Corolla and the 4wd beaches.  If you are unfamiliar with the bridge proposal, below you will find some general information.

Proposed Mid Currituck bridge Information:

Description of Bridge:
New location roadway, including a proposed bridge over the Currituck Sound, from near Coinjock to the Currituck County Outer Banks.

Proposed Length:
Approximately 7 miles

Planned Estimated Costs:
Preliminary cost is estimated between $335 million to $720 million (February 2008 dollars). Final costs will be determined during design.

Free (current) or alternate route:
Existing use is US 158 across the Wright Memorial Bridge.

Following the expected rate cut by the US Federal Reserve, the Dollar slipped against the Euro. I wonder if this signals the start of increased inquiries from European investors and vacationers. Aside from European investors, the Outer Banks is especially attractive to Canadian buyers. I wonder if the Canadian dollars increased value vs the US dollar will trigger many Canadians to consider buying an Outer Banks vacation rental home. Besides being within driving distance for many potential Canadian home buyers, the Outer Banks is also not located far from Norfolk International Airport. It makes it a great opportunity to buy for European or Canadian vacationers who enjoy any of the many outdoor activities which include: parasailing, windsurfing, kiteboarding, surfing, or fishing. Will the increased value of their money bring more to become Outer Banks home owners?

If I was a foreign investor, I would definitely be taking notice at some of the great opportunities offered in the US right now. Over last count, there were over 5,000 homes on the Outer Banks MLS. Within those 5,000 homes, many great deals definitely can be found. Normally, when the amount of foreclosures and REO’s are increasing, those with available capital can find great buys.

As time passes, we shall see if US resort areas, especially the Outer Banks, are filled with foreign investors. Hiring a good Outer Banks property manager can go a long way for those investors worried about being absentee home owners.