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Other than the economic downturn, is there a reason so much residential property is for sale on Oak Island? What factor does insurance play in the equation?

Andrew Dunn

There is certainly more residential property on the market now than there was several years ago, but real estate broker Barbara Andrews said there isn’t really much to blame but the economy.

Andrews, broker in charge for the Holden Beach office of Martha Lee Realty, said a high number of foreclosures on the island has led to the increase in homes on the market.

As the economy went south, people who owned second homes on Oak Island increasingly were unable to afford them anymore, she said.

“They’re going to let their secondary homes go and take care of their primary homes first,” Andrews said.

While not the primary factor, Andrews said that the increased costs associated with insurance can add to the pain for financially stressed owners.

But Jim Goodman, broker in charge of Intracoastal Realty’s Oak Island office, said that while insurance premiums for coastal-area properties have increased significantly in recent years, you don’t have to be on an island to feel the pain and that most potential buyers are aware that insurance costs will be higher on the coast.

In any case, the number of residential properties available on the island appears to be decreasing now, according to statistics Goodman provided.

Goodman said in August 2008, there were 1,512 Oak Island homes on the market. A year later, there were 1,443. And this August, there were 1,351. That’s a decrease of about 11 percent over the past two years.

At the same time, demand has also increased, Goodman said. He said 38 homes sold in August 2008, 53 in the same month in 2009, and 58 this August.

“Some people have the perception that it’s looking worse than it really is,” he said.

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Joe Mulvey

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6 Responses to “ Other than the economic downturn, is there a reason so much residential property is for sale on Oak Island? What factor does insurance play in the equation?”

  1. On October 17, 2010 at 10:54 am Tom Macie wrote:

    This article could really use some statistical information. My insurance really hasn’t increased very much since becoming a home owner there about 12 years ago.

    How about calling the NC Joint Underwriters in Cary, and ask them about rate increases in the “Beach Plan” to provide some concrete evidence?

    What would be interesting to know if these unsold properties are owned independently or by a group of investors who couldn’t flip them before the downturn.

  2. On October 17, 2010 at 11:02 am Bubba wrote:

    The truth be know is that the property taxes are so high in Oak Island.

  3. On October 19, 2010 at 5:29 pm brunswick grama wrote:

    Another reason people are selling is the increase in cost of services,sewer and water for example, Taxes are ridicules, and there is nothing on this Island.The town has spent huge sums on non necessary things like palatial firehouses, and town hall. The town even bought a pier! Then there are the constant law suits against the town. This place is a mess and anyone who can is getting out!

  4. On October 22, 2010 at 8:23 am Debbie wrote:

    Along with the economy, The insurance is ridiculously high. I don’t live anywhere near the beach, But I do live in Brunswick County, and because I live in a *COUNTY* that is connected to the *COAST*, I too, have to pay for Coastal Insurance, such as Wind/Hale. I can’t make that decision for myself, It is made for me since Beverly Perdue (OUR GOVENOR) signed it into law 2 years ago. I don’t think it’s fair, because I choose not to live on Oak Island because of the taxes and insurance being so high, even though I’ve worked on the Island for over 20 years.

  5. On December 26, 2010 at 9:59 am citizen wrote:

    I agree with brunswick granma, Oak Island council has overspent, palatial firehouse, police department and administrative office, plus piers, parks, golf courses, extremely poor handling of the sewer system, etc. They overcharge for sewer, water, garbage pickup, stormwater, etc. A non-resident who owns property there and only visits parttime in the summer will actually pay almost $80 monthly for these services and they never use a drop of water, sewer, garbage pickup, etc. except when they visit. Yet they pay these outlandish fees due to inept decisions by many elected officials. It is no wonder that many homes are on the market and more will be added due to the poor decisions of the council.

  6. On October 20, 2013 at 10:23 pm martyn hawkins wrote:

    I wonder if the new sewer system has allowed lots that wouldn’t ‘perc’ before to now be buildable?

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