The May real estate market stats for the Outer Banks are out. High demand is still a force keeping sales hot, and home prices rising.
On June 9th the Outer Banks Association of Realtors released the May MLS Statistical Report. Sales are still strong. Inventory is still extremely low.
Just like last month, we are comparing current monthly stats to May of 2020 when the market was essentially on hold. You can see in the graph that it was in July of last year where our current market conditions really ramped up.
The stats show total monthly sales are up 143%, total yearly sales up 105%. Yearly Residential sales are up 95%, lot/land sales up 151%.
Lack of inventory remains an issue. In May residential inventory is down 68% compared to last year, 75% compared to 2019. Lot/land inventory is down 25%, total inventory is down 50%.
“Days on market” is down 55% to 52 days. “Median days on market”, which I think is a better indicator of how quickly property continues to sell, was 9 days for May. Prime residential properties priced correctly in all price ranges are still going under contract quickly. Out of 333 properties, 60 were under contract within two days or less. 157 were under contract in a week or less.
Home Prices and “The Bubble”
In last month’s update, we showed the data and quotes from industry leaders indicating the inventory issue isn’t going to resolve itself quickly. This will continue to have a bearing on the price of residential property.
Potential clients are saying things like “we’re are going to wait six months until prices fall”, or “the bubble will burst soon, then we’ll buy”. Remember from last month’s report, it’s not a bubble, it’s a lack of inventory. And in six months, even twelve months, home prices will rise, not fall.
The top four financial institutions are all saying pretty much the same thing. J.P Morgan saying “if you are looking to purchase a new home, conditions are better now than they will be 12 months hence”.
From Merrill Lynch “Demand is strong because the biggest demographic cohort in history is moving through the household-formation and peak home-buying stages of its life cycle”.
Goldman-Sachs says “as a result, the model projects double-digit price gains this year and next”.
Morgan Stanley stated, “higher interest rates and post-pandemic moves could likely slow the pace of appreciation, but the upward trajectory remains very much on course”.
If you want a home on the Outer Banks, or most anywhere else, and you are waiting for falling prices, you may find yourself wishing you had decided to act instead of watching prices continue to go up.
Individual Area Stats
Alright, let’s dive into the sales stats for the individual areas. Keep in mind what I said earlier about the inflated monthly sales figures. For the month of May, we are starting in:
- Corolla – Sales up 172% – Median Sales Price up 24% to $692,000.
- Duck – Sales up 220% – Median Sales Price down 25% to $390,000. However, 17 of those were co-ownerships where what is sold is a certain number of weeks in the property, 5 plus weeks, not the property itself. Excluding those, the 15 residential properties that did sell had a median price of $540,000
- Southern Shores – Sales up 129% – Median Sales Price up 20% to $610,000.
- Kitty Hawk – Sales up 70% – Median Sales Price up 21% to $477,000.
- Colington – Sales up 67% – Median Sales Price up 14% to $340,000.
- Kill Devil Hills – Sales up 23% – Median Sales Price up 18% to $389,000.
- Nags Head – Sales up 169% – Median Sales Price up 17% to $560,000.
- All Hatteras – Sales up 564%!, 73 units vs. 11 – Median Sales Price up 29% to $484,000.
- Roanoke Island – Sales up 12% – Median Sales Price up 15% to $406,500.
- Currituck Mainland – Sales up 80%, Median Sales Price up 14% to $313,900.
- Ocracoke – Sales up 100% (from 2 units to 4) – Median Sales Price up 10% to $390,000.
Information in this article is based on information from the Outer Banks Association of REALTORS® MLS for the period January 1, 2019, through June 9th, 2021.
Mike is a long-time “Outer Banker”, both as a vacationer and a full-time resident. You may also know him as “Moose”, his nickname since he was 15 years old, and his on-air radio name for decades in Raleigh, Greensboro/Winston-Salem, Norfolk, and formerly on Beach 104 every morning on the “Moose & Jody Show” for over 14 years. Michael has built successful businesses on the Outer Banks. He is active in the community as well as a founding board member and Vice President of “Outer Banks Forever”, Past President of “The First Flight Society”, a founding member of “The Outer Banks Bicycle & Pedestrian Coalition”, and Past President and current member of “First Flight Rotary. Moose shares your love of the Outer Banks and understands the uniqueness of the area. Learn more at mooseobx.com