Real Estate in New Bern, Oriental and Havelock

The Market

Real Estate in the New Bern, Oriental and Havelock areas is driven by several factors.  The first and most obvious factor is the local economy, which is very strong.  Growth in commercial properties is very noticeable which is indicative of very active investment in the communities.  New residential construction is also very apparent as new developments abound and individual lots in many of the established communities have been purchased and spec homes are being built.  Each area also has some significant features that drive its individual market and spill over to the others.

 

New Bern sits at the confluence of the Trent and Neuse rivers and has a beautiful downtown and historic area that has been heavily influenced by the Swiss Bear Redevelopment Corporation.  For the past decade or so, New Bern's reputation has been growing as a destination for retiring folk.  This reputation got a tremendous boost when it was one of the featured destinations focused on by the Today Show on March 16, 2005.  Immediately thereafter we were inundated with inquiries form all over the country.  We see many people coming here from the northeast, upper mid-west, California, and yes Florida.  There are many different types of communities from which to choose.  There are waterfront, golf, historic districts and just plain ol' regular neighborhoods.  Just a few of these communities would be Greenbrier, Taberna, River Bend, Fairfield Harbour, Trent Woods, and Brices' Creek.

 

Oriental is a quaint little town near where the Neuse River enters the Pamlico Sound.  Needless to say it is very conducive to great sailing and fishing.  Many neighboring developments have and are springing up around Oriental in Pamlico County.  Oriental remains a small town that its inhabitants just love.  A feature or detriment, depending upon your viewpoint, is the approximate 1/2 hour drive to a substantial food market.

 

Havelock is the home of the Cherry Point Marine Corps Air Station and is therefore booming as a result of the growth of the base.  Havelock is also located on the Neuse River and therefore has many small waterfront communities nearby.  New Bern's residential and home rental market is also favorably impacted by this growth.

The area was once again negatively impacted by the national economic conditions.  2009 was the third year in a row with a decline (18%) in the number of homes sold.  It was also another year where the homes sold were but a fraction (44%) of the new listings coming onto the market.  The time a home that sold stayed on the market also increased from 152 to 202 days.  For the first year since the market decline, the average price ($183,825) of a home sold dropped 10%.   

 

Year

2005

2006

2007

2008

2009

New Listings	2537	2719	2964	2467	2684
Homes Sold	2426	2431	1975	1475	1206
Average Price	$175,065	$194,946	$197,139	$203,573	$183,825
Days on the Market	73	68	102	152	202

 

These factors all add up to an ever larger inventory of homes on the market and an obvious decline in the number of new homes being built.  That said, Carolina Colours continues to move ahead with the development of it's golf course as it is slated to open in thesummer of 2010.  Fairfield Harbour has closed one of its two courses and the local residents are attempting to package a deal to take over the facilities.  Also, the Cherry Point Marine Air Base continues to expand and will be bringing more squadrons to the base over the next three years.

So what is on the horizon for the area? 

 

In the short term, the increase of inventory has made it a buyers market.  I see an increase in incentives offered by sellers, such as covering some closing costs and agent bonuses.  I expect that sales prices will continue to drop.  Contracts that are contingent upon the sale of a home in another area have increased.  Buyers with the ability to close without a contingent contract will be in the drivers seat.

 

For the longer term, a lot depends on the markets in the northeast and other feeder areas of retiring baby boomers.  The New Bern area remains a very desirable retirement destination and the number of retirees is increasing.  The cost of property remains very favorable here when compared to those in urban areas  throughout the nation.  People will continue to look to escape the congestion and the higher cost of living in those areas.  Continued growth in the defense arena could sustain values through tougher times elsewhere with sales taking off again when conditions improve in the overall market.