At the end of summer vacation, many of the island's five million annual visitors have found their thoughts drifting back to the soothing warmth of the sand, the invigorating salt air and the lull of the ocean's surf. Those who have toyed with the idea of investing in such a feelgood place may discover that this is the year they actually do it.

"Prices have come way down over the last two years. Interest rates are close to an all-time low."

If this isn't the time to buy, who knows when there is one? Buy now and by 2011, you'll be overjoyed that you did," said Tim Moore, broker and sales manager for Joe Lamb Realty.

If you're ready to stake your claim on an investment or vacation home here, be encouraged. The multiple for-sale signs con¨ rm what has been suspected: It is officially a buyer's market on the Outer Banks.

Nationally, it's considered a true buyer's market when there is six months or more of real estate inventory on the market. It's estimated that the Outer Banks has anywhere from 10 months to two years worth of inventory. Another sign of a buyer's market is that the percentage between the asking price and the selling price increases.

"For several years, we experienced Duck and Corolla ocean-side properties closing between 96 and 98 percent of the original asking price. In today's market, sold ocean-side properties are closing at an average of 91 or 92 percent of the seller's original asking price,¼ said Gray Berryman, broker with Carolina Designs Realty.

Interest rates, prices and inventory have combined to make real estate on the Outer Banks even more attractive and accessible.

"In my opinion, we've had inø ated prices and now they've adjusted to where they should be. Buyers have more buying power now than they've had in years," said Richard Hess, senior broker in charge with Sun Realty. It's basic economics, according to associate broker Mike Williams of Riggs Realty. When selection is great and demand is down, you can find bargains. As inventory starts to shrink and sales increase, the market will come back. If you wait, the only things that change are price and opportunity.

Although nationwide investment home sales were dismal last year, vacation home sales have been a ray of sunshine, consistently securing between 12 and 14 percent of the housing market since 2004, according to the National Association of Realtors.

On the Outer Banks, there are signs that the second-home market is heading in the right direction. For the first time in 20 years, newlyconstructed oceanfront condominiums are for sale. Buyers are purchasing older homes and remodeling them to be used as short-term rentals or as personal vacation homes, and more and more retirees are looking for a comfortable spot to land.

Plus a lot more people who just love the Outer Banks are buying. For them, renting isn't the main goal. While it's nice to have that as an option, they want to own a vacation home or to move here,¼ said Hess.

Usually, when sales are down on the barrier islands, rentals are up; and this year is no exception.

"Rentals are doing very well, even with high gas prices. Here lately I'm hearing people say `I've never been to the Outer Banks.' Maybe a lot of people aren't øying now and are coming here because it's closer than where they usually go,¼ said Debbie Conklin, property manager with Cove Realty.

Vacationers are potential homebuyers. They realize that, by owning a second home, they have the øexibility of getting away from a hectic routine at the drop of a hat or a hint. They can retreat without worrying about making reservations and settle into a home-away-from-home that is stocked and waiting.

"We are seeing more activity in the way of property showings and sales. I think we're dealing with a lot of savvy buyers. They've been looking for a while and realize this is the opportune time to buy. Some clients left the market when it was crazy and are now coming back in,¼ said Debbie Price, broker with Corolla Real Estate.

Knowledgeable homebuyers see this as an optimal time to purchase Outer Banks real estate because the prices are low, the marketplace has settled and sellers are more willing to negotiate. Those who are in the process of selling their homes are ¨nding there's really only one "hot button" in the current market that will motivate buyers.

"And that is price. Period. Case closed. We have a very good market for well-priced properties. We are not selling over-priced properties. It's really just that simple,¼ said David Watson, sales manager and broker-incharge of Southern Shores Realty. »If the price is right, you will sell it. There are definitely buyers out there and there's pent-up demand. We see it on well-priced properties and are still getting multiple offers on them. People have tremendous amounts of money. So, don't wonder what you need to do to sell your house. Lower your price and it will move."

Sellers are ¨nding that buyers are informed, well-quali¨ed and very picky about the properties on which they're willing to write offers. "They're able to make purchase decisions and go forward with them, but there's not a rush," Berryman said.

Of course, buyers shouldn't drag their feet forever and expect the home to be there when they are ¨nally ready to buy. As Price cautions, "The buyer who is waiting for the bottom of the market may well miss the boat because no one will know when that is until it passes.

TIPS FROM THE EXPERTS
Here are some guidelines about buying, selling and renting a beach house in today's market on the Outer Banks.

• If you own rental property, keep your kitchen well stocked with wine glasses, a blender, dinnerware and extras. Also, make sure you have comfortable beds with new pillows and mattress pads every year. It's inexpensive, easy and really, really important. This goes with the hotel trend of providing the best accommodations possible.
-Ali Breaux, Sun Realty

• While the strong season to sell investment homes is January to May, primary residences and second homes sell anytime of the year. So, price your property where it should be.
-Tim Moore, Joe Lamb Realty

• If, as a buyer, you see something you like and it makes sense, go for it. Don't pass up something you may really like because you think it will be cheaper in six months, because it may not be. For sellers, your property is only worth what someone's willing to pay. You need to have it in top condition because you have much more competition and only those properties priced correctly and in very good shape are going to be shown.
-Debbie Price, Corolla Real Estate

• If you've got some money, look for some really good deals now because they're out there. Vacant land is selling for half of what it was selling for three years ago. The people who are enjoying selling their homes now are those who bought during the last downturn.
-Mike Williams, Riggs Realty

• The code word of the day for would-be sellers is to get the price right and your property will sell. You want to put a price on it that says »I want to sell;¼ not a sign that says "for sale" with a price that says "I want to keep it."
-David Watson, Southern Shores Realty

• You need to decide if buying a vacation home is a good decision for your family to make. And you can't do that effectively unless you talk to a lender, familiarize yourself with the market, get input from your Realtor and see inside the houses. The best way to do that is in person - not online.
-Gray Berryman, Carolina Designs Realty

• A lot of our people made their reservations last year when they checked out, booking the property they liked. So, I'd recommend that vacationers reserve the beach house they want to stay in next year before they leave to go home this year. Also, be prepared for the weather to change dramatically on any given day. It's the nature of the area.
-Debbie Conklin, Cove Realty

• áThe northern Outer Banks' beaches are beautiful, wide and pristine with a great quality of life. It's a wonderful place to buy property for relocation, retirement, investment or second-home purposes. There are a lot of choice properties on the market; you just need to move on them. This isn't a real estate market that will lose its value because there's such a limited amount of this type of land.
-Margaret Dyer, Karichele Realty

Real Estate/Rental Agencies

Southern Shores - Nags Head - Kill Devil Hills - Kitty Hawk - Mainland Currituck

Atlantic Realty

(800) 334-8401

Beach Realty & Construction/Kitty Hawk Rentals

(800) 635-1559

Bodie Island Realty, Inc., Nags Head & Kill Devil Hills

(888) 441-2558

Carolina Designs Realty

(800) 368-3825

Conner Resorts, Nags Head

(800) 624-7432

Cove Realty, Nags Head

(800) 635-7007

Elan Vacations

(866) 760-ELAN

Joe Lamb, Jr. & Associates, Kitty Hawk

(800) 552-6257

Kitty Dunes Realty, Kitty Hawk

(888) 860-3863

Nags Head Realty, Nags Head

(800) 222-1531 • (252) 441-4315

Outer Banks Resort Rentals, Nags Head

(252) 441-2134

Prudential Resort Realty, Nags Head

(252) 255-3500

Resort Realty, Kitty HawK

(800) 458-3830

Sea Dunes Realty, Kitty Hawk

(252) 255-5504

Sea Scape, Kitty Hawk

(252) 261-3837

Seaside Vacations, Kitty Hawk

(866) 884-0267

Shoreline Preferred Properties, Nags Head & Kitty Hawk

(800) 449-2036

Siebert Realty, Northern Beaches

(877) 422-2300

Southern Shores Realty Co., Southern Shores

(800) 334-1000

Stan White Realty, Nags Head

(800) 338-3233

Sun Realty, Kill Devil Hills, Kitty Hawk

(800) 801-7861

Village Realty, Nags Head

(800) 548-9688

Wright Property Management, Kitty Hawk

(800) 276-7478 • (252) 261-2186

Duck - Corolla

Atlantic Realty, Corolla

(800) 669-9245

Barrier Island Station, Duck

(800) 237-5177

Beach Realty & Construction & Kitty Hawk Rentals

(800) 635-1559

Brindley Beach Vacations

(877) 642-3224

Carolina Designs Realty

(800) 368-3825

Corolla Classic Vacations

(866) 453-9660

Duck's Real Estate, Duck

(800) 992-2976

Karichele Realty, Inc., Corolla

(800) 453-2377

Outer Banks Blue Duck

(877) 623-2583

Resort Realty, Duck & Corolla

(800) 458-3830

Resort Quest, Corolla

(800) 962-0201

Resort Quest, Duck

(800) 334-6315

Seaside Vacations

(866) 884-0267

Shoreline Preferred Properties

(800) 449-2036

Stan White Realty, Duck

(800) 992-2976

Sun Realty, Duck & Corolla

(800) 334-4745

Twiddy & Co. Realtors

(866) 457-1190 • (252) 457-1100

Roanoke Island - Manteo

Pirate's Cove Realty, Nags Head/Manteo Causeway

(800) 537-7245

Avon - Rodanthe - Buxton - Salvo - Hatteras

Cape Escape Realty, Salvo

(800) 996-2336

Colony Realty Corp., Avon

(800) 962-5256

Dolphin Realty Inc., Hatteras

(800) 338-4775

Hatteras Realty, Avon

(800) 428-8372

Midgett Realty, Hatteras Island

(800) 527-2903

Outer Beaches Realty, Hatteras Island

(800) 627-3150

Sun Realty Salvo Real Estate, Salvo

(800) 345-0910

Sun Realty, Salvo & Avon

(800) 843-2034

Surf or Sound Realty, Hatteras Island

(800) 237-1138