November Outer Banks Market Report
November 10, 2015 By Ilona
It’s still 70 degrees here in Corolla today! Almost mid November and it’s very warm. Also SMOKING HOT is real estate market activity! Pending sales are up 56% from last year. That means there are more properties under contract right now than this same time last year.
However, most importantly to note, prices are NOT up. In fact in some markets, like Corolla, they have still declined. Other areas remain virtually unchanged. So we are selling more houses for the same or less money. That’s not a terrible thing, because it means we are stabilizing. That’s a good sign, since it’s a necessary part of a recovery.
Let’s remember, the majority of home sales on the Outer Banks are to buyers who don’t live here. That means it is a discretionary purchase, which will cause our recovery to naturally be slower than those year round markets. This is nothing new. The same thing happened when the real estate market crashed in the late 80’s. It was almost 1999 before things recovered.
Distressed property sales are down 30% from last year. So the truth is those sales are no longer a factor and are certainly not what’s holding back prices. The main issue is STILL supply and demand. We have a whopping 16 months worth of inventory on the market right now.
That means if nothing new came on the market it would take 16 months to sell out what’s currently for sale. A normal market is considered to be a 4 to 6 month supply. Since we are selling more than last year and this “16 months” is the lowest absorption rate we’ve seen in many years, I would say this is another great sign that we are getting close to the end of the stagnant time.
The important thing to remember is, prices won’t immediately start to go up either. Appreciation takes time. So if your home is worth 15% to 20% less than what you would prefer to sell it for in today’s market, you could still be another 6 or more years away from getting your preferred price. And we don’t know what an interest rate hike could do to that time frame either. That kind of increase in value will take time, as it should, or we will only be setting ourselves up for another crash. Which I’m sure, nobody wants to experience again this soon if at all!
That being said, if you want to buy a great house, it may not last long. Especially if the home is priced right. If you want to sell your home, price it aggressively and the buyers will show up!
Outer Banks Fall 2015 Market Report
October 21, 2015 By Ilona
With cooler temps each Fall come higher sales numbers. Each year we see about a 25% increase in the number of sales versus the summer months. It’s pretty obvious with the majority of homes being occupied and unable to be viewed.
We also know that most buyers of second/investment homes will consider the purchase for anywhere from 6 months to 24 months before actually writing an offer. So it’s not uncommon for our summertime guests who decide to invest to re-visit in the fall and winter to purchase.
There are two main things I want to focus on in this update. First is the status of things now. Second, is the difference that 10 years and a very big cycle can make.
Status of the market right now:
(This info is for home sales only and compares September 2015 to September 2014)
- The number of homes sold is up 11%
- Average sales price is down 2%
- Median sales price is up 4%
- The number of homes in active inventory is down 11%
The bottom line? More homes are selling, prices remain the same and inventory is just now starting to go down. These are all very good signs for our market. This is an important step in the process to getting back to a normal, growing market. The process will still take a few years, but it’s good to be on the right track.
The reason this is so important is because we all remember still how good it was in 2004 and 2005 when prices were at their peak. We also have to remember these cycles don’t happen overnight. The impact of the market crash was tremendous. It will take a very long time to fully recover from it.
Consider the difference 10 years makes:
(This data compares the calendar year 2004 to 2014 for home sales only)
- We sold 749 FEWER homes in 2014
- We sold $589 million LESS in Volume in 2014
- The average sale is 26% LOWER than it was in 2004
- Median sale price is DOWN 28% from 2004
- Days on Market – are up MORE than 2 months
Those are some pretty major differences. All in all what you need to know is if you’re ready to buy, prices and interest rates are definitely in your favor. If you’re thinking of selling, the market is very active and we can get the job done.
The last few listings I took sold in less than 30 days. When you price it right, it will sell.
2015 Mid Year Outer Banks Market Report
July 9, 2015 By Ilona
We now have 6 months worth of data in and the results are pretty much what we expected for the real estate market performance. Here are the bullet points:
- Up in NUMBER of sales by 9%
- Down in average sale PRICE by 8%
- Numerous homes in each market are selling in less than 100 days
- Of the homes selling quickly, it’s just a few % points of asking price
- Distress inventory is less than 5%
- Active inventory on the OBX remains over 3,000 listings
- 10% of active inventory is under contract, which means 90% is NOT
Here’s a quick breakdown by marketplace:
NOTE: The days reported INCLUDES the time it took to close the transaction, which is generally 35 to 50 days.
The good news is, if you price it right, it will sell! Buyers are looking and ready for the best values and aren’t afraid to take action.
If you’d like more information about buying or selling on the Outer Banks, please contact me right away!
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New Price!! Spend your Lazy Summer Days on Your Sun Deck in Corolla!
July 7, 2015 By Ilona
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June Market Update
June 4, 2015 By Ilona
This month let’s take a look at what’s happening in each specific location for a closer, more in depth view understanding.
Corolla
| Corolla Stats | |
| Total # of Homes for Sale | 377 |
| Total # Selling per month | 17 |
| Months of remaining Inventory | 22 |
| # of New listings each month | 45 |
Corolla has a 22 month supply of inventory. It’s the weakest market on the Outer Banks right now in terms of supply and demand. Constant price reductions are needed to get homes sold. When a home comes on the market priced well, it will sell quickly.
Duck
| Duck Stats | |
| Total # of Homes for Sale | 154 |
| Total # Selling per month | 8 |
| Months of remaining Inventory | 19 |
| # of New listings each month | 18 |
One great trend in Duck is that the supply of homes under $300,000 is very diminished. While the inventory issue is still a problem for Duck, homes will sell very fast when priced for the market.
Southern Shores
| Southern Shores Stats | |
| Total # of Homes for Sale | 93 |
| Total # Selling per month | 7 |
| Months of remaining Inventory | 13 |
| # of New listings each month | 20 |
The Southern Shores market is doing quite well. It has one of the lowest inventory levels of all the towns. Land sales are fantastic in Southern Shores right now.
Kitty Hawk
| Kitty Hawk Stats | |
| Total # of Homes for Sale | 77 |
| Total # Selling per month | 13 |
| Months of remaining Inventory | 22 |
| # of New listings each month | 19 |
Kitty Hawk between the highways is a fast seller right now. Those homes are a fantastic value and buyers are recognizing that.
Kill Devil Hills
| Kill Devil Hills Stats | |
| Total # of Homes for Sale | 182 |
| Total # Selling per month | 19 |
| Months of remaining Inventory | 9.5 |
| # of New listings each month | 40 |
By far the most stable market on the Outer Banks right now is Kill Devil Hills. Keep in mind the majority of homes selling here are under $300,000. This area has the best supply and demand situation of all the towns.
Nags Head
| Nags Head Stats | |
| Total # of Homes for Sale | 190 |
| Total # Selling per month | 14 |
| Months of remaining Inventory | 13.5 |
| # of New listings each month | 25 |
Nags Head is holding it’s own right now. The average price there is $350,000 which makes it super affordable for such a great location.
So as you can see, right now selling a home on the Outer Banks comes solely down to price and condition. Buyers still have too many choices for prices to change any time soon. The good news is we have steady activity in the marketplace right now and it doesn’t seem to be slowing down.
