January 2025 Update
January 22, 2025 By Ilona
2024 market saw a few distinct changes. Higher inventory and massive price reductions. We are already starting to see a small change in pricing – roughly 5 – 7% depending on location. If inventory keeps rising, we could see the pricing change go up.
Here’s how December Year over Year looks:
|
December 2024 |
December 2025 |
|
| Active – 585 | Active – 434 | *Single Family |
| U/C – 244 | U/C – 235 | *All Classes |
| Absorption Rate – 6.59 | Absorption Rate – 4.89 |
As you can see inventory is up 35%.
Yet the number of properties under contract is about the same. While that number has not gone down, what happens when you have more homes for sale and the same or fewer buyers? Law of supply and demand is in play. That is why the absorption rate (months of inventory) has gone up so much.
The statistics are telling us the slow down will continue this year. With mortgage rates higher and mortgage applications at their lowest levels ever, we could see a double-digit drop in pricing this year. I’ll be watching!
July Market Update
July 3, 2023 By Ilona
Mid-year is upon us and not much has changed since the last report. I did notice an interesting trend regarding CASH in our marketplace. Here’s the deal. There have been 136 home sales in Duck and Corolla since January.
Of those 136 home sales:
- 32 Cash
- 13 Jumbo Loans
- 91 Conventional Loans
A conventional loan amount is $726,200. With the typical 20% down, that means a purchase price of around $875,000.
- Only 53 of the 136 homes sold were under $900,000
- 83 homes sold over $900,000 up to $6,300,000
- 13 were jumbo loans
- 22 were cash
- The average price is $1,251,000
- The median sales price is $992,500
A jumbo loan amount is anything over the $726,200. There were only 13 of those reported. There were 48 Conventional loans in the $900,000 and up price range. This means that 48 buyers out of 83 brought enough cash to the table to get their mortgage at or under $726,200.
To paint a clear picture – 32 cash buyers, 48 mostly cash buyers. That’s 80 buyers (60%) who brought a ton of cash to the closing table to buy a home on the Outer Banks. Including the highest sale of the year so far – $6,300,000 ALL CASH!!!! This just seems amazing to me. (Here’s a link Click Here to View Listings to that home if you want to see what $6.3M gets you)
This is a clear indication that buyers have no problem parking cash in a beach home right now. I mean, why not? Let’s look at the 3 main reasons this could be a good idea.
- Rental income – If you choose to rent, the income will at the very least cover your mortgage. That means, future equity you reap, all paid by SOMEONE ELSE.
- Bank Failures – With banks failing across the country, and the Dodd-Frank Bill legalizing, if not mandating, “bail-ins” a lot of people don’t feel safe keeping their cash susceptible. Rather, they are investing in a tangible asset, and one they can enjoy themselves and have others pay for!
- Inflationary Fiat Dollar – Let’s get real, the price of real estate will NEVER go to zero. As inflation spikes even more and more out of control, the dollar is tumbling closer and closer to zero. It seems buyers are hedging their bets on the tangible asset of real estate versus the tumbling value of the dollar.
We haven’t even begun to see the effects of the commercial real estate crisis looming. This is widely affecting regional banks who are holding the notes on these buildings that are sitting empty in record numbers across major cities.
Don’t get me wrong, my message is not of doom and gloom. What’s going to happen is going to happen. My point is, what is your best move?
If you are considering selling, there are cash buyers waiting for your home. We do have investment vehicles where you can put your money and AVOID capital gains tax in the meantime. Contact me for more information.
If you are thinking about buying, get off the fence and don’t let the interest rates deter you. You won’t have much competition buying right now and there are some great opportunities out there!
Outer Banks Market Update – March 2023
March 1, 2023 By Ilona
As of right now, the Outer Banks is experiencing what is considered to be a “normal market”. That means we are not seeing prices change in any significant way up or down. While prices are still at what is considered to be somewhat inflated, there’s not been real measurable changes so far. Secondly, we still have a balanced level of inventory. A normal market is considered to be a demand level of 4 to 6 months of inventory. We are sitting right in the middle at 5 months of inventory. This means the demand is steady and supply is still rather low. In comparison at the peak times in 2021 and 2022, we had just a 2-month inventory.
This begs the question, where are we headed? There are 3 factors I’m watching to help determine that. What’s great about Beach Realty is we watch the statistics every single week. It’s just as good as having a crystal ball. The numbers change in a gradual way that you can actually see the shifts coming if you’re paying attention, which we are!
Factor 1 – Mortgage Applications
Year over year nationwide mortgage applications to buy a home has fallen 41%. In just a YEAR! It’s currently at the lowest level in 28 years right now. That’s even worse than the mortgage crash that happened in 2008. Coupled with data from NAR, only 29% of recent home purchases are cash. The most obvious cause is rising interest rates and still inflated home prices. As a second home market, over 70% of our home sales are a discretionary purchase. It’s a decision buyers can wait on, especially if they think changes are coming soon.
Factor 2 – FNMA and Second Homes
About a year ago Fannie Mae basically got out of the second home business. Wanting to pull support from second homes and focus more on first time home buyer programs they negotiated a deal with the Mortgage Bankers Association to drastically increase rates on second homes. Which at the time didn’t seem too objectionable on conforming loans because the conforming loan limit was $548,250. With the average second home here being near $700,000, most buyers wouldn’t be affected. Now the limit is $726,200 for a conforming loan, coupled with the most attractive rates being a now 75% LTV, the rates shot up over 7% with one point. Making it even more expensive than ever to buy a home on the Outer Banks with a conforming limit mortgage. I don’t know the exact percentage of second home mortgages that are sold to Fannie Mae, but I think an educated guess would be MOST of them. The only solution is for mortgage brokers to keep the loans on their books and try to offer more attractive rates. Who knows how long that will last and how many lenders will participate. I only know of one broker with that program right now.
Factor 3 – Rising Inventory
As buyer demand continues to soften due to rates and prices, inventory will start to creep up this spring and summer. That could lead us directly into an inventory level over 6 or 7 months by fall. That pushes us back into a buyer’s market. If rental receipts drop this year, as expected, this fall we could see prices take a very noticeable hit. How much is yet to be determined. However, with as high as prices rose over the last few years, even a 10% drop would likely still put the home higher than pricing was in 2019. So all is not lost, for this year at least.
If you’re thinking about selling, NOW is your window. Give me a call to discuss further.
The 2015 Outer Banks Market Report
January 14, 2016 By Ilona
We saw a lot of very positive signs in 2015 that continue to lead us on the path to recovery. While we still have an oversupply of inventory on the market, keeping prices down, we have a double digit increase in number of sales.
The other interesting trend is showing more homes in the higher price ranges are selling and fewer homes offered in the under $300,000 price range. That is showing our median sales price to be up, even though individual home prices aren’t rising at this point.
It’s virtually impossible for our home values to go up when inventory is still at a 15 month supply. However, it’s a great step forward. We saw a 20% increase in number of sales for 2012, then it steadied for 2 years until another big increase in sales for 2015.
Mortgage brokers are expecting a surge in activity the first part of 2016 to beat the Fed’s promise of rising interest rates. We certainly have a year round market on the OBX and see great activity all year long. The two spikes in activity happen in March/April and September/October. No need to wait though, we can get your home sold any time of year.
Here is the breakdown of where we ended up for 2015:
- Residential number of sales were up 11%
- Average sales price was down 2%
- Land sales numbers were down 5%
- Average sales price was up 7%
- Inventory was down 8%, being the lowest since 2007
- Foreclosed home sales were down 37%
Next month I’ll provide a break down of each location individually so you can see how it compares year over year.
If you have any questions or would like additional information please let me know.
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.
If you’d like more information about buying
or selling a home on the Outer Banks, just let me know how I can help you.
New Listing! 3104 Columbia Avenue Kill Devil Hills, NC 27948
March 18, 2015 By Ilona
New Listing!!
3104 Columbia Avenue
Kill Devil Hills, NC
MLS# 87201 $240,000
This charming beach box is located in a prime area in Kill Devil Hills. The garage was converted to a work area/laundry room/game area and additional bedroom with private bathroom. Take the interior stairs up to an open great room with kitchen and dining area. Two additional bedrooms are on the south side of the top floor with a hall bath. A large master bedroom and bath with walk in closet are on the north side. The fenced in back yard makes this a great choice for buyers with dogs or small kids. Plenty of room to play. Maintenance free vinyl siding is a plus!
Contact me for more details!
Fall in Love with this Cozy Beach House in the Heart of Duck!
March 5, 2015 By Ilona
New Listing!!
124 Marlin Drive,
Duck, NC
MLS #: 86752 $325,000
You will love this cute and cozy beach house right in the heart of Duck. This home sits right in the middle of Marlin Drive. Easy access to the beach or the foot/bike path into Town for shopping and restaurants. Enjoy three bedrooms and 2 full baths on the top floor. Along with an open concept kitchen, living and dining area. Relax on the screened porch for shade or sun on the huge, open back deck. The ground floor offers an outside shower, storage and another large bedroom and bathroom. The septic was updated in 2005 to accommodate the additional bedroom. This home has been well cared for and it shows.
Never rented, just used by family and friends.
This is the perfect house to call your own for an incredible price in Duck!
Contact me for more details!
Winter Blues? Think of the Summer Possibilities in Duck!
February 24, 2015 By Ilona
101 Snow Geese Dr S
Duck, NC
MLS# 85192 $329,000
This home is the perfect getaway just North of “downtown” Duck. Enjoy a short bike ride or stroll into town for shopping or restaurants. Lovingly updated just a few years ago you’ll find laminate wood floors, newer carpet and furnishings throughout the home. Ground floor game room with separate entrance is a great place to hang out after a day at the beach. Enjoy the hot tub or rooftop deck at sunrise! The open concept kitchen/dining/living room is perfect for entertaining with floor to ceiling windows facing the Sound for plenty of natural light.
Keep it as a second home or generate some
rental income on this true cutie.
Contact me for more details
New Listing!! 124 Marlin Drive, Duck, NC 27949
February 17, 2015 By Ilona
New Listing!!
124 Marlin Drive,
Duck, NC
MLS #: 86752 $325,000
You will love this cute and cozy beach house right in the heart of Duck. This home sits right in the middle of Marlin Drive. Easy access to the beach or the foot/bike path into Town for shopping and restaurants. Enjoy three bedrooms and 2 full baths on the top floor. Along with an open concept kitchen, living and dining area. Relax on the screened porch for shade or sun on the huge, open back deck. The ground floor offers an outside shower, storage and another large bedroom and bathroom. The septic was updated in 2005 to accommodate the additional bedroom. This home has been well cared for and it shows.
Never rented, just used by family and friends.
This is the perfect house to call your own for an incredible price in Duck!
Contact me for more details!
