November was another strong month for real estate, even though it has slowed just a bit. Is that slow-down due to declining inventory?
Well, here we are in early December. In April if anyone had said by the end of the year our real estate market on the OBX would be 40% ahead of 2019 we might have thought they had a little too much Kill Devil Rum! But that is exactly where we are in total sales, with yearly residential sales up 41% and lot/land sales up 40%. For the month of November, the market is 51% ahead of last year, residential sales up 49%, and the median sale price up 39%. Lots/Land is up 63%.
For the individual areas January through November sales;
- Corolla Up 131%, median sale price up 12% to $546,950.
- Duck up 114%, median sale price off 1% to $494,500.
- Southern Shores up 31%, median sale price up 8% to $507,500.
- Kitty Hawk up 4%, median sale price up 4% to #390,000.
- Colington down 9%, median sale price up 11% to $299,900.
- Kill Devil Hills up 4%, median sale price up 14% to $326,000.
- Nags Head up 30%, median sale price up 18% to $470,000.
- All Hatteras up 63%, median sale price up 7% to $365,000.
- Roanoke Island also up 63%, median sale price up 12% to $325,425.
- Currituck Mainland up 13%, median sale price up 4% to $273,000.
- Ocracoke down 10%, but that is only 2 units, median sale price up 1% to $357,500.
Lack of inventory continues to be a big issue for those of us trying to help potential buyers find the right property. Total inventory has declined 46%, residential inventory off 58%, lots/land down 24%.
I cannot stress enough the importance for buyers to have their financial ducks in a row before shopping for a home. When you find the right place you will need to move quickly as many properties are going under contract only days after hitting the market, some the same day. You want to be in a position to get your offer in front of the seller before they make a decision.
I have had some potential buyers tell me they are waiting for “all of the foreclosures to hit the market and bring the prices down”. This is not 2006. Lawrence Yun Chief Economist for the National Association of Realtors recently said:
Today’s lack of inventory is not just an issue on the Outer Banks. Right now, nationwide, there are about 1.5 million homes on the market, compared to 3.8 million fourteen years ago. Here is a slide spotlighting the drop in inventory since 2010, and the rise in home prices.
I could do a whole series of articles on this subject and still have people come to me saying the market is going to crash any day. At this time the data just doesn’t support that argument.
What does work in your favor as a buyer are low interest rates. The projections from Freddie Mac indicate these rates will stay low well into 2021.
For sellers, all of this works in your favor! Prices are up, inventory is down, it is a seller’s market. You still need to price the property correctly. Priced and presented correctly your property can get multiple offers which can push the final selling price higher. Pricing too high increases the chances your property will be overlooked and sit on the market.
Good REALTORS® know their market. Working with a REALTOR® will give you the best chance of achieving your real estate goals. When it’s time for that medical procedure are you going to try it yourself or let a professional take care of it. Why would you not use a professional for one of the most expensive transactions in your life?
Information in this article is based on information from the Outer Banks Association of REALTORS® MLS for the period January 1, 2019, through December 7, 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, Norfolk, as well as the Outer Banks. 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.