The impact of slowly rising inventory and decreased demand is starting to add up here on the Outer Banks. Don’t get me wrong, homes in good condition, location and priced right are still selling very quickly. We don’t have an overabundance of inventory, yet. However, we are definitely seeing some markets shifting faster than others.
Here’s how each area breaks down:
| Area | Active Listings | Sold/ Month |
Month Supply |
| Corolla | 161 | 10.6 | 15 |
| Duck | 33 | 3 | 11 |
| S. Shores | 32 | 5 | 6.4 |
| Kitty Hawk | 24 | 7 | 3.4 |
| Kill Devil Hills | 121 | 23 | 5.2 |
| Nags Head | 48 | 10 | 4.8 |
The relationship of inventory to number of homes sold per month gives us the absorption rate. The absorption rate tells us how many months it would take to sell out the inventory at the current rate of sales. That is a direct reflection of the “health” of a market, or describes what type of market we are in. The chart below lists this out. Based on this, you can see how each area is performing.
When shifting to a different market it’s common to see some areas performing differently than others. If you consider the higher end markets will generally slow down first, and that is reflected here.
If you are thinking of selling in one of those markets, the time is now.
As we approach the second half of the year, it’s important to notice the little shifts happening along the way. Remember, real estate markets don’t crash overnight. It happens slowly at first, then all of a sudden. We are in the slowly at first phase.
In a nutshell, the market here is changing…slowly…but surely. These types of cycle shifts don’t happen all at once. Fortunately, because I study the market every day, I can help you see it coming. After all, you can get out of the way of what you don’t see!
What a difference a year makes! Long story short, there are some BIG moves that are happening. I’ve talked before about algorithmic decay. This chart here is exactly that! Little, by little, by little, then bang. That’s how markets change. Tale as old as time, song as old as rhyme, it’s almost as good as a crystal ball.
It’s no secret the real estate market is in very bad shape right now. And in an effort to be as up-front as possible about the pros and cons, I wanted to create this quick list of the main things to consider before buying or selling.
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.
