LUXURY MARKET REPORT
Coastal
| Q2 2023
Q2 Market Report | July 2023
COMMUNITY UPDATES
- Atlantic Beach & Emerald Isle
- Bald Head & Southport
- Carolina & Kure Beach
- Figure Eight Island, Porter's Neck, &
- Hampstead
- Holden Beach & Oak Island
- Onslow County
- Topsail Island & Surf City
- Wrightsville Beach & Landfall
- Wilmington
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Cooling Market Conditions Still Haven’t Met Pre-Covid Conditions
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Current Trends
Limited inventory and volatile interest rates remained relevant factors in the 2nd quarter’s market trends. The Wrightsville Beach, Landfall, and Wilmington markets continue to experience high demand and high sell-through, particularly in the $500k-$1m and $1m-$2m markets. The most recent reports show June’s inflation was just 3%, the lowest pace in more than two years, while the Dow Jones Industrial remained relatively consistent throughout the quarter despite a sharper dip in the second half of May. Interestingly, interest rates have plateaued in the 6.5-7% range for now and consumers seem to have adjusted albeit with less demand in the lower more interest rate sensitive ranges.
ATLANTIC BEACH & EMERALD ISLE
One of the most popular destinations for vacationers, Atlantic Beach, and Emerald Isle rest on North Carolina's northern barrier islands below the Outer Banks Emerald Isle is famous for its pristine, emeraldcolored beaches and Atlantic Beach, north of Emerald Isle, is near popular Morehead City and across from the famous historic port town of Beaufort, NC.
There is a decrease in the closed transactions from last year to this year ’ s spring and summer quarter in the midmarket and $1 million to 2 million market as market trends stabilize following the frothiness seen during Covid’s housing burst However, ultra-luxury market above $2 million in value experienced a 133% decrease in the second quarter, reflective of a return to more normal demand levels
ATLANTIC BEACH & EMERALD ISLE
Q2 Homes Sold
LAST 90 DAYS
BALD HEAD & SOUTHPORT
The southeastern tip of North Carolina has historically been a popular vacation spot for decades The mix of historical significance and coastal beauty has made this area highly desirable
The mid-market and luxury level remained consistent from 2022 to 2023 in comparing second quarters, while the market is tapering gradually, it remains an active market with demand above that of the pre-covid 2019 period The ultra-luxury range saw an increase on small unit sell-through, which can be impacted by a handful of high value transactions With the summer travel season in high gear, purchase demand has proven to be more inconsistent at this price point
BALD HEAD ISLAND & SOUTHPORT Q2 Homes Sold
LAST 90 DAYS
CAROLINA & KURE BEACH
With its proximity to Wilmington, the ferry to Southport, and the limited inventory and price appreciation of Wrightsville Beach, the Pleasure Island areas of Carolina and Kure Beach have become a highly sought after coastal destination. Long known for its relaxed vibe and small-town beach atmosphere, this area ’ s real estate market has seen major jumps in property values as well as unit sell-through
The $500,000-$1 million, more interest rate sensitive, segment showed a nearly 31% decrease in the second quarter of 2023 when compared to that of 2022 The $1 million-$2 million category showed a 47% decrease in closed transactions, yet the ultra-luxury segment experienced a slight increase in demand above $2 million in the second quarter with 2 homes closing and another in the $3 million range under contract, compared to last year ’ s spring quarter with no transactions over $2 million
CAROLINA BEACH & KURE BEACH
Q2 Homes Sold
LAST 90 DAYS
FIGURE EIGHT, PORTER'S NECK, & HAMPSTEAD
Figure Eight Island, Porter's Neck, and Hampstead are north of Wilmington Porter's Neck and Hampstead are two emerging markets that are developing a robust luxury market, while Figure Eight Island remains one of the region’s flagship upscale communities with some of the most significant coastal estate homes in the Carolinas
Inventory continues to stay on par with the recent trends in the second quarter as the active listings went from 49 in the first quarter of 2023 to 57 in the first quarter of 2023, which is a typical trend of the spring market This pocket of the market saw a 132% increase in $500,000-$1 million market from 2022 to 2023 The $1 million-$2 million range saw a 250% increase and the ultra-luxury segment saw an 80% decrease, as luxury interest in these areas continues to grow
FIGURE 8 ISLAND, PORTER'S NECK & HAMPSTEAD
Q2 Homes Sold
LAST 90 DAYS
HOLDEN BEACH & OAK ISLAND
Holden Beach & Oak Island comprise the South Brunswick Islands southwest of Wilmington Holden Beach was voted number one family-friendly beach several years in a row and remains one of the more restful and residential islands. Oak Island became inhabited in the early 19th century after Fort Caswell was constructed in 1838. It grew slowly, but by the 1930s, it had become a popular beach and hunting destination Both markets have grown tremendously throughout the last few years.
These coastal islands experienced practically no change in both the $500,000-$1 million and the $1 million-$2 million market segments, only dropping by 2 sales in the mid-market. The $2 million plus range saw a 500% increase, going from 1 sale to 5, as higher prices closer to Wilmington continue to push some buyers to the outer barrier islands below and above the city
HOLDEN BEACH & OAK ISLAND
Q2 Homes Sold
LAST 90 DAYS
ONSLOW COUNTY
Located north of Wilmington, Onslow County was first created as Onslow Precinct in 1734 and then became a county in 1739. Jacksonville sits at the country seat and features a large military population due to Camp Lejeune, a large military base
Onslow County experienced a similar second quarter from 2022 to 2023, with a 7% decrease in the $500,000-$1 million segment and a 64% increase in the $1 million-$1 99 million segment The $2 million plus segment remained exactly the same as this luxury market continues to grow.
ONSLOW COUNTY
Q2 Homes Sold
LAST 90 DAYS
TOPSAIL ISLAND & SURF CITY
Topsail Island is a barrier island 45 minutes to an hour north of Wilmington that includes the beach town of Surf City, as well as North Topsail Beach. Topsail Island has long been a vacation spot favorite and Surf City is one of the most popular cities on Topsail Island.
Interestingly, all price points in these areas experienced a decline in closed transactions except for the ultra-luxury market The $500,000 to $1 million segment saw a 41% decrease and the $1 million-$2 million range saw a 20% decrease, while the smaller market above $2 million in price did see a slight uptick in closings compared to last year ’ s early summer quarter
TOPSAIL & SURF CITY
Q2 Homes Sold
LAST 90 DAYS
WRIGHTSVILLE BEACH & LANDFALL
Wrightsville Beach is the furthest eastern part of Wilmington and one of the most popular beaches on the East Coast. Just a few minutes inland sits the prestigious Landfall community. This is a flagship gated golf course community in Wilmington, situated between Wrightsville Beach and the intracoastal waterway.
In the $500,000 and $1 million market segment, there was a 5o% decrease from the second quarter of 2022 and the second quarter of 2023 The $1 million-$2 million market saw a slight decrease in 2023, going from 26 to 23 and the $2 million plus segment saw a 12% increase in 2023
WRIGHTSVILLE BEACH & LANDFALL
Q2 Homes Sold
LAST 90 DAYS
WILMINGTON
Wilmington is a historic port city along the Cape Fear River that features three gorgeous islands The historic artistic culture is complemented by the small beach town aesthetic offered by toprated pristine beaches at Wrightsville Beach, historic Carolina Beach, and Kure Beach The art, music, food, architecture, history, and natural beauty of Wilmington make it the #1 emerging market in the US (Mansion Global, 2022)
The $500,000 and $1 million market segment saw a 5% increase in the first quarter of 2023 from the first quarter of 2022. The $1 million-$2 million market increased by 11%, going from 47 to 53 and the $2 million plus segment saw a 36% decrease in 2023
Q2 Homes Sold
LAST 90 DAYS WILMINGTON
COASTAL MARKET FORECAST
Cooling Market Conditions Still Haven’t Met Pre-Covid Conditions
At the conclusion of the second quarter, many of the key markets represented in this report have more active inventory than pending transactions. In most price segments, this represents a rebalancing of the market to what are still solid conditions, with most price segments displaying under 90 days of inventory, or healthy conditions. While some price decreases are beginning to bubble up, many of these are occurring with properties that came to market at historically high price points as much as 20% above trailing comps, and thus decreases may not reflect a decline of sold values so much as just a lessening of appreciation.
These results are similar to what is happening elsewhere in North Carolina. Financial markets continue to see levels that are three times greater than ten years ago, and luxury real estate continues to not only remain a stable investment, but one in which owners have multiple options in the case of secondary and investment properties.
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CHECK OUT OUR EMERGING MARKET REPORT!
The long history of high demand of the Wilmington and Wrightsville Beach area has led many people to turn to other markets for luxury inventory. To read our 2023 report on coastal North Carolina's emerging markets, please visit the link below https://bit.ly/3rps3PT
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