Outer Banks Real Estate: A Year in Review and Outlook for 2024
John Head, VP of Sales & Marketing, REALTOR®/Broker
Hello, folks! John Head here, bringing you a comprehensive year in review for the Outer Banks real estate market in 2023. It has been a challenging year for both buyers and sellers, and I want to take a few minutes to provide you with insights and updates.
Reflection on 2023
The year started with a slowdown in the market from the first quarter, and the fall season, historically a time of increased business, did not follow the usual trend. Typically, 30 to 50% of business is done during the fall as rentals end, making properties easier to show, and people prepare for a new season. However, 2023 deviated from this pattern.
Despite the challenges, the Outer Banks real estate market remains strong overall. While the time to sell has extended a bit, the inventory is still in short supply for the Outer Banks, spanning from Hatteras Village to Corolla and encompassing various regions like Manteo, Manns Harbor, Bodie Island, and Hatteras Island.
Key Numbers for 2023:
- Total home sales down by 27%
- Single-family detached homes down by 31%
- Condos down by 6%
The housing inventory for December 2023 increased compared to the same month in 2022. Currently, there are 329 single-family homes available, with an average days-on-market of 97.
Outlook for 2024
As we enter 2024, the market has shown signs of stimulation, with a reduction in second-home interest rates by almost a full percentage point. Buyers are actively exploring opportunities, and the market is gearing up for increased activity.
Anticipated Trends in 2024:
- Reduction in interest rates
- Increased buyer activity
- More inventory entering the market
- Potential surge in sales ahead of the vacation season
Personal Experience and Insights
Having been a part of this vibrant community since 1995, I understand the allure of the Outer Banks. While colder weather is on the horizon, it’s a far cry from the regular temperatures in the 20s in northeast Ohio.
Looking ahead to the first quarter of 2024, the market is expected to see heightened buyer activity with the reduced interest rates. More sellers are considering listing their properties, creating a favorable environment for both buyers and sellers.
Market Trends and Analysis
Comparing 2023 to 2022, residential inventory was up by 8% in December. The average days on the market increased to 97, indicating a slightly slower but still vibrant market. The second-home market typically experiences a longer selling cycle, and the current conditions are within the expected range.
- Appreciation rates for 2023: approx. 1 3/4 to 2%
Regional Breakdown and Support Team
The MLS Statistical Report delves into regional specifics, breaking down information by towns or villages such as Corolla, Hatteras Village, Duck, Colington, and Kill Devil Hills. Please review at your leisure to dive into the information that may apply to the area of the Outer Banks where you own property, or may be looking to purchase.
Colony realty has a team of full-time agents to help if you have questions about the market or are looking to buy or sell. Alongside our team of agents lies the incredible support team at Colony Realty Sales. Our support team ensures a seamless process for clients, backed by years of expertise.
In conclusion, 2023 was a unique year for the Outer Banks real estate market, and 2024 holds promise for increased activity and positive shifts.
For questions or further information, feel free to reach out to me, or any of our incredible team members.
Thank you for entrusting us with your real estate business in 2023, and here’s to a vibrant and successful 2024!
Make it a great day until we see you here at the beach. Happy 2024!