How hot is the real estate market on the Outer Banks? Remember how hard it was to find toilet paper in April?
Ok, so I “borrowed” that from a meme that was rolling around a few weeks ago, but it is pretty accurate. You could get toilet paper in April, but you had to be at the store at just the right time, and the really good stuff went really fast. This is the case with real estate on the Outer Banks right now.
Interest rates are still low. People are still wanting to live in their dream home sooner, rather than waiting until later. It seems that working from home is becoming the norm, as is virtual learning. These, and other, factors have people flocking to the Outer Banks. Many are buying second homes, but there are some who have made the decision that this will be their new permanent home.
The Outer Banks Association of Realtors released the august Statistical Report on September 9th. In their words “Inventory is shockingly low. We haven’t seen this level of activity since the MLS started tracking this data in 2005”. Residential inventory is down 52%, residential sales up 23% so far as compared to last year, the number of properties under contract is up 127% compared to last year! Total monthly sales versus August of last year up 63%, and for the year total sales are up 20%.
With lower inventory and high demand, prices are beginning to rise. Residential prices overall are up 16%, with single-family dwellings up 20% and condos up 12%.
Looking at the numbers by town there are some notable differences. From January through August Corolla sales are up 69% compared to last year with the median sales price up 1%, Duck is also up 69% with median sales price down 12%. Southern Shores sales up 7%, prices are flat. Kitty Hawk sales are up 2% but prices are down 2%. Colington sales are down 4% but prices are up 9%. Kill Devil Hills sales down 3% while prices increased 14%. Nags Head sales are up 15% and prices are up 10%. All Hatteras up 28% with a 3% increase in price. Roanoke Island sales are up 59%, prices up 4%. Currituck Mainland sales are up 15%, prices up 2%.
One question I get is “does this low inventory situation mean I won’t be able to find a house I like”? No. But make sure you are ready to act quickly when that perfect home comes on the market. This means having a pre-qualification letter in hand before you start looking seriously. If you are a cash buyer have proof of funds available. You will be asked to provide this information with the offer. Not having this information available in a timely manner can cause you to miss out on the home of your dreams.
Your REALTOR® can help get you ready to begin your search, then be your guide and advisor through the process.
Information in this article is based on information from the Outer Banks Association of REALTORS® MLS for the period January 1, 2019, through September 9, 2020.
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, and Norfolk. In fact, you can still hear him on Beach 104 every morning on the “Moose & Jody Show”. Michael has built successful businesses on the Outer Banks. He is active in the community as well as a founding board member 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, understands the uniqueness of the area, and can help you find your perfect home. Learn more at mooseobx.com.