Market Update October 17th, 2023
John Head, VP of Sales & Marketing, REALTOR®/Broker
Hello from the Outer Banks!
It’s a beautiful October day, and we’re providing a real estate market update. We receive these reports in mid-month for the previous month. With all the gorgeous weather, I would rather be outside than in front of a computer, but here we are. Overall, the market is still softening, meaning we are seeing an increase in inventory, as I have mentioned over the past few months.
To give you some context, a few months ago, we had around 285 single-family homes available for sale. Today, that number has increased to 329. The average days on the market have also increased, going from under 30 days during the “unicorn years” to around 83 days now. This is slightly lower than last month’s figure.
This increase in days on the market is good news for those considering selling their properties.
Additionally, rising interest rates have changed the dynamics of the market, especially for investment properties with projected rental incomes in 2024. We’re particularly seeing some stagnation in rental income for properties in the BC zone, which is the west side of the road without a direct water view. However, this does not apply if you’re considering a second home. If you’re looking for a vacation rental/ short term rental as an investment property, it’s important to have a home with a water view and easy access to the water, whether it’s the sound or the ocean.
Historically, properties close to the ocean or oceanfront have always rebounded from value dips more quickly and offered better returns as time and economics change.
Take a look at the Outer Banks Association of Realtors Statistical Report and let’s quickly go through some of the numbers. Year over year, all inventory is down by 16%. The number of properties under contracts currently stands at 379, a 20% decrease. However, it’s important to note that the median price, which is commonly used by the National Association of Realtors and reported by news sources, doesn’t fully represent the reality of price points. The average price is a more accurate indicator. Please refer to the Single Family Homes Market Report for a detailed breakdown of single-family homes from Corolla to Hatteras Village and Roanoke Island. Please note that the report includes a section for the “four-wheel drive area.” However, reports do not include data for Carova, which is a 12-mile trip once you leave the pavement in Corolla. If you’re interested in properties in the area of Carova, we can refer you to our great agents who live and work there.
The current average price point for single-family homes is $1,000,244, with an average of 83 days on the market.
Overall, the market remains strong.
To put things into perspective, during the economic downturn of 2007-2012, we saw an average of over 280 days on the market. Based upon current market data, we are well below those numbers.
For a comprehensive overview of listings in different areas, please refer to the report linked below this article. It focuses on single-family homes only, and it covers the range from Corolla to Hatteras Village. We didn’t include information about lots or condominiums this week, but if you’re interested, feel free to reach out to the agent who provided you with this report or contact me directly at john@colonyrealtycorp.com.
That’s a summary of our current inventory situation. When we mention all inventory it includes townhouses and condos, which total 489. However, there are only 329 single-family homes available for sale from Corolla to Hatteras Village. Considering the rising interest rates, it’s worth noting that we still have many cash buyers in the market. This has influenced the price range that certain individuals are looking at.
If you have a waterfront property to sell and are considering purchasing, focusing on those properties would be a wise choice.
When preparing to purchase an investment property, take a look at the rental income and historical data. We know that late 2020, 2021, and the first two quarters of 2022 had high rental incomes. However, it has softened recently in terms of weekly bookings. If you’re thinking about buying a property, I encourage you to ask your agent to provide rental income data from 2018 and 2019 for the specific property, if available. If not, we can request a projection through our partnership with Resort Realty to give you a realistic expectation of what the market can offer.
We aim to keep you informed and educated about our marketplace, so when the time comes to buy or sell, you can make well-informed decisions.
Until we see you at the beach, have a great day and take care!
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Single Family Home for sale PDF – https://bit.ly/3ZWWxG5