Market Update March 15th, 2023
John Head, VP of Sales & Marketing, REALTOR®/Broker
We’ve been getting some great questions about the market. Many of you who have been our buyers, in my career of 25 years here on the Outer Banks, also have become sellers, and then also buyers again at some point depending on where life has taken you. For this reason, we want to hit on the topics because you’ve been asking about when it comes to the real estate market, and the market conditions here on the Outer Banks.
Let’s get some perspective on historical numbers today. You’ve likely seen me share this market analysis time and time again over the years. It’s produced by the Outer Banks multiple list service, and what it all boils down to is statistics. Right now, for all inventory we are at 790 total.
I’ve been hearing this from many of you: “Well, I think the market’s gonna decline or I think we’re gonna see another hard reset.”
My personal gut, which is based on 25 years experience, is that we’re not even close to that.
For example: In 2005, we started to see the market slow and inventory just started popping up like crazy. Followed by what happened in 2008, the market crashes, we saw 30% to 50% adjustments in a lot of our marketplace here on the beach.
Fast-forward to today, if you look at our current inventory, 790, which includes residential improved property (that means homes are sitting on the land), vacant lots/land and commercial. If you look at today compared to 2008, at that time there were 1300 single family homes- which is a big uptick from where we are today. In March of 2012 we had 3,152 listings. In 2013, we had 2,900. In 2014, we bumped back up to 3,105 listings. Yet today, at the end of February when this report was created, we only had 789 total active listings. This data shows that we’re still in a supply-demand situation.
If a house comes on as priced appropriately we’re still seeing multiple offers. Just as I tell my clients, staff and our team members (or other buyer agents and listing agents alike), yes, the market has transitioned.
The sizzle is off the steak, but the steak and the entree is still hot and ready!
There are still many participants looking to make a purchase and and fulfill the dream of owning a beach house. That’s just how it began for me, I started in 1995 and became full-time in August of 1997. Vicki Langhel, Sylvia Mattingly, and all who have come here and at work on our team currently (with exception of couple folks that have born and raised here), all started with a dream of living on the beach. Many of my clients over the past 25 years that have started the same way.
We’ve always vacationed here, we just want a second home or we want a vacation rental so that we can still use it a few times a year, and the great reward is that you have somebody else providing income to help offset that cost if you choose to rent your 2nd home in a vacation rental program.
There are still so many opportunities here, you just have to be diligent in your shopping. When it comes to market reports and data, if you want to hone down a little bit more specific to the town, village or subdivision where your property is currently located, then we can do that to you as well. Just shoot us a quick note. You can see we’re not in a free fall, I belive we’re going to return to historical norms. Expect to see values appreciate 5% to 10%. Why such a bigger range? Historically, back when I first started it was 5% to 6%, now it’s 5% to 10%. We are going see that ebb and flow a little bit, but it’s gonna average out in that 5% to 10% range overall.
If you have questions about the content of any of this information, just drop a line in the “contact us” form on this page and we’ll be in touch.
Thank you and have a great day, until we see you here at the beach!