This is all part of the ebb and flow of life on the barrier islands of the Outer Banks that last year cast its spell on thousands of vacationers, about 15,000 second-home owners and nearly 35,000 year-round residents.

Even with increasing competition from other coastal beaches, the Outer Banks hasn't lost its magnetism.

"People love it here. They think it's beautiful. We get a lot of friends telling friends what a wonderful time they've had here compared to other beaches," said Katherine Ponton, reservationist with Corolla Classic Vacations.

Dan Hardy, president of Joe Lamb, Jr. & Associates, believes the Outer Banks has a "very good reputation up and down the East Coast."

"Plus," he added, "We're a driving destination, meaning if someone wants to come at the last minute, all they have to do is hop in the car and it's not that far."

Word is spreading about the seclusion of the Outer Banks. This year, TripAdivsor®, reportedly the world's largest travel community, polled its travelers and found that 78 percent of them said they will take a beach trip with their children this year. From the group, 92 percent will seek out family-friendly beaches; and the number-one family-friendly beach on the list is North Carolina's own Owner Banks.

"It is a very family-friendly area. There's not a place down here that you couldn't take everyone in your group. To many people, the Outer Banks means great family vacations full of fun time together, sharing new experiences and returning to familiar places that they know and love." said Ali Breaux, vice president of Sun Realty.

David Buchanan, owner of Compass Edge Construction, points out, "It's a unique environment. And with the limited commercial growth, it will naturally keep its small-town feel."

The Outer Banks distinguishes itself in another way, which gives it an edge over the competition.

Gray Berryman, broker with Carolina Design Realty, said that the real estate market here is unique because it offers highly desirable real estate and rental income that significantly offsets the cost of ownership.

"Similar markets do not have the rental income we have here. Plus, it's very easy for the second-home owner to have professional management to help take care of their investment. There's a whole team of people out here to help buyers manage their homes," he said.

For more than a century, the area has attracted vacationers who both buy and rent beach houses on or near the oceanfront. And, while the sand may shift around these houses, their investment potential hasn't. It's still rock solid.

"The Outer Banks is on most American's short list of places-I-got-to-see-before-I-die. I don't think anything has diminished that. Over the last 60 or 70 years, this place has become entrenched in America's consciousness," said Gian Hasbrook, vice president of sales and marketing for Outer Banks Construction & Real Estate.

It hasn't, of course, been immune to what's happened across the country in real estate. The Outer Banks Association of Realtor's MLS figures compiled by Mary Davenport, broker associate with RE/MAX Ocean Realty, show that in 2004, there were 2,258 houses sold; in 2005, this number dropped to 2,102; and in 2006, the total number of hoses sold through the local MLS was 1,154.

"My prediction is that we're going to beat the number of 2006 this year and that our market is coming back," said Davenport, adding that, from January through mid-April of 2007, more than 500 home sales were either closed or under contract.

Debbie Deane, broker with Riggs Realty, agrees. "There are people out there who have money to invest and they want to get back into real estate since it's turned into a buyer's market and the prices have adjusted themselves. Real estate is still reasonable here, especially when it comes to beach-front houses."

Hasbrook predicts that it will swing back to a sellers market in six or seven years.

"Then," he added, "people will say,'I could kick myself for not buying back when.'"

The real estate market landscape is changing, though. In sales, Berryman sees two distinct divisions. One is compromised of people who are motivated to sell their homes and are pricing them accordingly; the other is made up of owners who are pricing their homes higher than market value.

"The motivated people are selling and there are buyers out there to pick up the good deals." said Berryman.

Richard Hess, senior broker in charge with Sun Realty, tells his clients that because there's more inventory and prices are reasonable, they can buy exactly what they want now and start enjoying their beach house.

"So, why wait? We've got diversity of product. There are several new condo projects going up, which is something we haven't seen in a while. The rental market looks good. And things that have always been positive about the Outer Banks are still positive," he said.

There is a noticeable shift in the types of buyers now investing on the Outer Banks. Hess observed that "more people are buying who really enjoy the Outer Banks," rather than those looking for invest-and-flip property.

David Watson, Southern Shores Realty, is selling more homes to people who are moving here year-round or reserving their second-home for personal use only.

"The Outer Banks is becoming an ending destination. People are moving here and taking their oceanfront properties out of the rental program," he said.

While investment dollars are still flowing, Davenport is seeing more young people in the community making strides toward purchasing their own home.

"And I'm seeing a lot of people downsizing, selling homes in other markets and moving here to live," she said.

In addition, more people are remodeling their existing rental houses or building new homes and making plans to live in them rather than rent them.

"People are taking their homes out of the rental markets and upgrading for personal use and enjoyment. They have enough equity in them now that they don't have to rent them anymore," said Buchanan.

Debbie Shealey, broker in charge with Sandalwood Construction and Realty Company, recommends the clients discuss with their builder how the home will be used.

"Some construction companies, such as ours, offer an in-house design group that can meet with the client and discuss their needs, wish list, prices and even buying the property to build on. Builders can also help clients navigate through the rules and regulations of individual towns about parking, lot coverage, elevations, septic systems, etc.," she said.

Whether buying, building or renting a vacation home on the Outer Banks, the goal is the same.

"People come back year after year because the Outer Banks is their home away from home. With an increasingly hectic lifestyle, the Outer Banks is a symbol of what really matters - the chance to have fun, relax and just hang out together as a family," said Breaux.

Or, as Sun Realty's senior vice president Janice Farr put it:"The Outer Banks continues to have a magical appeal. Coming here each year gives people a chance to recharge and bring the focus back to what's most important."

Often, what seemed important a month ago, becomes less significant under the sun's penetrating warmth and the island's sentinel sand dunes. In an environment where only the ocean tugs for attention, life just seems to fall into place.

TIPS FROM THE EXPERTS
Looking to buy, build or vacation on the Outer Banks?
Here are some tips from the experts.

• If you're building a house or remodeling, ask for references and then call those people to confirm that they were as happy at the end of the project as they were at the beginning. Ask the builder for pictures of post work.
-David Buchanan, Compass Edge Construction

• Shop around and look at your options when you're searching for vacation accommodations. Prices generally reflect the age, condition and location of the home. While there may be bargains to be had, it's still important to look at the quality of the home and its location - meaning the proximity to the beach. Regardless of the amenities a home offers, people still want to get to the beach. This carries right over to someone buying a home; it's location that's important. Always has been and always will be.
-Dan Hardy, Joe Lamb, Jr. & Associates

•Prices have adjusted themselves, so take advantage of it being a buyer's market.
-Debbie Deane, Riggs Realty

• When renting a vacation home, it's always best to make your plans early to ensure that you get the house you want. Many homes book up to several months in advance, especially for summer months and holidays. But - with that said- there are usually some homes available for last-minute vacations. You just have to be very flexible as to size, location and amenities.
-Ali Breaux, Sun Realty

• The more information the client has and the more time they put into researching the market or talking with their family to find out what they truly want, the happier they will be, whether they are buying or renting a home. If you see a good deal, take it because it may not be there next week.
-Gray Berryman, Carolina Designs Realty and Outer Banks Association of Realtors 2007 MLS Chairman

• There are options out there for buyers who need a more creative way to buy there vacation property due to lack of finances. With a group of family members and/or friends, there are numerous opportunities to buy with joint ownership or by creating an LLC. This allows a client to buy a home here and not be financially burdened by their investment. Overall, the most important thing all buyers and sellers should have is an experienced agent.
-Debbie Shealey, Sandalwood Construction and Realty Company

• It's a great time to buy a second home and get what you want. There are great mortgage rates, good prices; and that equates to a good value.
- David Watson, Southern Shores Realty

• It's best to reserve your cottage before you leave the Outer Banks to make sure you get the one you want. A lot of times, people will call at the last minute and think they can get an oceanfront rental and there's rarely any left. The pickier you are and the more amenities you want, the earlier you should book.
-Jacqueline Lain, broker and property manager with Cove Realty

• It's more important than ever to find a Realtor who has the knowledge, experience and systems in place to sell your home faster and for more money or to assist buyers with their negotiating skills and save them thousands on a home purchase.
-Mary Davenport, RE/MAX Ocean Realty

• Although it's a buyer's market, if you price your home right, it will sell. Buyers are looking for people who price their homes fairly and then they will purchase.
T-Mike Morrison, Sea to Sound Realty

• The 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

• We allow our season guests to use the home's shower and park at their rental house while it's being cleaned. This way, they can get over the Wright Brothers Memorial Bridge before noon on Saturdays and beat the traffic and go to the beach while waiting for the house to be cleaned.
-Katherine Ponton, Corolla Classic Vacations

Real Estate/Rental Agencies

Atlantic Realty

(800) 334-8401

Atlantic Realty

Corolla
(800) 699-9245

Barrier Island Station

Duck
(800) 237-5177

Beach Realty & Construction/Kitty Hawk Rentals

(800) 635-1559

Bodie Island Realty, Inc

Nags Head • Kill Devil Hills
(888) 441-2558

Brindley Beach Vacations

(877) 642-3224

Carolina Designs Realty

(800) 368-3825

Cape Escape Realty

Salvo
(800) 996-2336

Colony Realty Corp.

Avon
(800) 962-5256

Conner Resorts

Kitty Hawk
(800) 624-7432

Corolla Classic Vacations

(866) 453-9660

Cove Realty

Nags Head
(800) 261-3286

Dolphin Realty, Inc.

Hatteras
(800) 338-4775

Duck's Real Estate

Duck
(800) 992-2976

Elan Vacations

(866) 760-3526

Hatteras Realty

Avon
(866) 428-8372

Joe Lamb Jr. & Associates

Corolla, Duck, Southern Shores, Kitty Hawk, Kill Devil Hills, Nags Head and South Nags Head.
joelambjr.com

(800) 552-6257

Karichele Realty, Inc.

Corolla
(800) 453-2377

Kitty Dunes Realty

Kitty Hawk
(888) 860-3863

Nags Head Realty

Nags Head
(800) 232-1531 • (252) 441-4315

Midgett Realty

Hatteras Island
(800) 527-2903

Outer Banks Blue Duck

(888) 628-2583

Outer Banks Resort Rentals

Nags Head
(252) 441-2134

Outer Beaches Realty

Hatteras Island
(800) 627-3150

Pirate's Cove Realty

Nags Head/Manteo Causeway
(800) 537-7245

Prudential Resort Realty

Nags Head
(800) 268-0152

Resort Realty

Duck • Corolla
(800) 458-3830

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) 334-1000

Sun Realty

Kill Devil Hills • Kitty Hawk
(800) 334-4745

Sun Realty Salve Real Estate

Salvo
(800) 345-0910

Sun Realty

Salvo • Avon
(800) 843-2034

Surf or Sound Realty

Hatteras Island
(800) 237-1138

Village Realty

Nags Head
(800) 548-9688

Wright Property Management

Kitty Hawk
(800) 276-7578 • (252) 261-2186