Record high sales, record low inventory, and continued high demand. The seller’s market continues for Outer Banks real estate!
The Stats
The November Statistical Report for the Outer Banks Association of REALTORS® recaps another record month in several areas. Total residential sales volume is up 49% over the same time last year to nearly 2 Billion dollars. Land sales volume is up 125%, and commercial volume is up 125%.
Residential unit sales year-to-date total 3139, up 13% over 202 and 60% over 2019. The year-to-date residential median sales price is now $479,000, an increase of 17% over last year’s 23% jump from 2019. That represents a 43% increase over 2019, which was $334,605. The year-to-date average sales price rose 36% over 2020 to $612,212, a 53% increase compared to 2019’s figure of $400,752.
Yearly lot/land sales, which total 892, are up 62% for 2021 and were up 40% in 2020. Compared to 2019 that is a 127% increase. The year-to-date median sales price is $109,814, an increase of 14% over last year, and 32% compared to 2019. The average sale price is up 26% over last year to 156,515, a 28% increase over 2019.
Low Inventory!
One of the “records” I mentioned at the beginning of the report was the record low inventory. On the day the data was retrieved by OBAR (Dec. 7) there were 377 active residential listings, compared to 618 last year, and 1493 in 2019, a decrease of 75%. On the day I wrote this report (Dec.9) that number was down to 370.
The lack of inventory we are experiencing seems to have happened “overnight”. But looking at the data from OBAR you can see that this inventory problem was bound to happen eventually. 2008 is the earliest complete year I have monthly residential inventory data for. For that year, the annual average number of residential units available was 2475. That figure stayed above 2000 units until November of 2010 when it dipped to 1984. The average for 2011 was down to 1867 units, then to 1791 for 2012, and 1826 for 2013, the low point occurring in December of that year with active units at 1700.
There was an uptick in 2014 with residential inventory averaging 2006 units, the high point in August with 2119 units. November of that year would be the last time monthly residential inventory would top 2000 units. 2015’s average dropped to 1842 units a month, down to an average of 1656 in 2016, 1493 in 2017, you get the idea. Certainly, there were factors that seemed to accelerate the pace of that drop in inventory. But regardless, it was going to happen. Our residential inventory for the month of November is down 85% compared to November of 2008.
Strategies
If you are selling your home you need to price the property correctly to get the best price. Your REALTOR® can give you the data needed to price your property to you the most money. Homes that are priced too high won’t get the traffic or the best offers. Often time you will observe these over-priced properties sitting on the market for months. Look at the days-on-market discussion below. There is a market average but also averages for individual areas. When a home is on the market for longer than the average DOM then something is holding it back, and usually that “something” always comes back around to price.
For buyers, when that perfect property is listed you need to be ready. That includes having all of your financial responsibilities taken care of ahead of time so you can get your offer in quickly. In the case of multiple offers, which are common these days, be prepared to make your best offer. When your REALTOR® says they need “highest and best” that means the seller has other offers so yours needs to stand out somehow. It is usually the highest offer but not always. Maybe you can close quicker, have all cash, any number of things you and your REALTOR® can discuss to ensure you get the home you want.
Whether you are buying or selling, I will work with you to achieve your real estate goals.
Individual Areas
Low inventory combined with high demand has reduced the average “days on market” from 114 days in 2020 to 53 days in 2021. But there are some areas where that DOM figure is closer to 30 days. You will see that below in the year-to-date stats for the individual areas. For November:
- Corolla – Sales down 3%, median sales price up 29% to $720,000. Average days on market 41, compared to 139 in 2020.
- Duck – Sales down 10%, median sales price up 20% to $625,000. Average days on market 83 compared to 136 in 2020. But without the co-ownerships, where 5 plus weeks are sold, not the property itself, sales were down 16%, median sales price up 39% to $780,000. Average days on market 43 compared to 127 in 2020.
- Southern Shores – Sales down 5%, median sales price up 32% to $635,000. Average days on market 36 compared to 106 in 2020.
- Kitty Hawk – Sales are down 3%, median sales price up 27% to $500,000. Average days on market 29 compared to 56 in 2020.
- Colington – Sales up 24%, median sales price up 17% to $350,000. Average days on market 32 compared to 93 in 2020.
- Kill Devil Hills – Sales up 31%, median sales price up 23% to $407,500. Average days on market 26 compared to 67 in 2020.
- Nags Head – Sales up 23%, median sales price up 28% to $615,000. Average days on market 43 compared to 85 in 2020.
- All Hatteras – Sales up 33%, median sales price up 39% to $523,000. Average days on market 93 compared to 181 in 2020.
- Roanoke Island – Sales down 3%, median sales price up 21% to $430,500. Average days on market 55 compared to 91 in 2020.
- Currituck Mainland – Sales up 16%, median sales price also up 16% to $320,550. Average days on market 32 compared to 84 in 2020.
- Ocracoke – Sales up 122%, median sales price up 24% to $440,000. Average days on market 205 compared to 268 in 2020.
Information in this article is based on information from the Outer Banks Association of REALTORS® MLS for the period January 1, 2008, through December 9th, 2021.
Mike is a long-time “Outer Banker”, both as a vacationer and a full-time resident. You may also know him as “Moose”, his nickname since he was 15 years old, and his on-air radio name for decades in Raleigh, Greensboro/Winston-Salem, Norfolk, and formerly on Beach 104 every morning on the “Moose & Jody Show” for over 14 years. Michael has built successful businesses on the Outer Banks. He is active in the community as well as a founding board member and Vice President of “Outer Banks Forever”, Past President of “The First Flight Society”, a founding member of “The Outer Banks Bicycle & Pedestrian Coalition”, and Past President and current member of “First Flight Rotary. Moose shares your love of the Outer Banks and understands the uniqueness of the area. Learn more at mooseobx.com