Market Update: Outer Banks Real Estate Insights
Good afternoon! John Head here from Colony Realty, bringing you a timely market update as we head into the 4th of July weekend. I hope you have a wonderful Independence Day celebration with family and friends, whether at the beach or elsewhere. It’s a time to appreciate our fabulous country and the freedoms we enjoy.
Outer Banks Real Estate Market Overview
Let’s dive into the latest statistics from the Outer Banks Association of Realtors MLS. I’ve been eager to share this update, although I missed June’s report due to some much-needed family time away from the beach.
Inventory Trends
Inventory has seen a significant increase, up 67% year-over-year and 26% since January. This indicates a normalizing market. When I discuss active inventory or sales, I focus on the area from Corolla to Hatteras Village, excluding the interior regions like Interbanks or Lower Currituck. These statistics also cover Manteo and Wanchese on Roanoke Island, but not Ocracoke, where I rarely practice.
Currently, we have 497 active listings, including single-family homes, townhomes, and condos within the mentioned area. In the past 30 days, 113 properties have closed, resulting in a 22% absorption rate. This means we have about 4.39 months of inventory, suggesting a healthy market. A balanced real estate market typically has five to seven months of inventory.
Detailed Market Breakdown
This comprehensive report breaks down data by town or village, allowing you to see trends specific to your area of interest. For instance, while there are only two distressed inventory cases, some commentators predict another foreclosure crisis. However, I don’t foresee that happening in our market.
Hatteras Island is a bit unique as it combines data from its seven small villages, which can sometimes skew the perception of cumulative sales. Nonetheless, this report, curated by the Outer Banks Association of Realtors and our esteemed Dan Sutherland, provides valuable insights.
Industry Changes and Their Impact
Switching gears, let’s address recent developments in the real estate industry. The news has been buzzing about the National Association of Realtors (NAR) settlement, now postponed until August. What does this mean for us in North Carolina, where I’ve practiced real estate for 27 years?
Firstly, we will continue our business as usual. North Carolina has always required fee disclosures for listing agents and buyer’s agents. A significant change is that buyers will now need a signed buyer’s agency agreement before any showings. We’ve already implemented this practice for over two years to ensure clarity and protect all parties involved.
Secondly, sellers are encouraged to offer compensation to buyer’s agents, a practice we’ve built into pricing. This change aims to address issues raised by the Department of Justice, though it may complicate financing options for veterans using VA loans. These borrowers traditionally couldn’t pay certain expenses outside of closing, but changes are forthcoming to allow these payments if a seller doesn’t offer compensation.
Conclusion
As we celebrate Independence Day, let’s appreciate the evolving landscape of our real estate market. If you have any questions or are considering buying or selling property, feel free to reach out to me at john@colonyrealtycorp.com or contact one of our team members.
Enjoy the holiday with your loved ones, and I look forward to seeing you at the Outer Banks, perhaps soaking up the sun on the beach.
Take care, and happy 4th of July!
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