Coastal | Q1 2024
contents
Q1 Market Report | April 2024
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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Luxury Housing Inventory Returning to More Balanced Inventory Conditions
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Coastal Luxury Housing Inventory Returning to More Balanced Conditions
Luxury inventory up and down the coast has for the most part has edged up over the past 90 days, with most areas now seeing inventory levels in the 45 day to 120 day absorption rate ratios Demand during the winter months can be cyclical, yet it appears to be trending upward for the spring in historic fashion This balancing of slight inventory increases, with additional seasonal demand, should create a steady level of buying activity throughout the late spring and early summer, albeit not quite at the robust level that the COVID market brought
A late 2023 inventory build up in several coastal market areas has positioned some areas with several months' of inventory for the first time since the pre-Covid period. In high demand areas like Landfall, inventory remains lower at the 30-45 day level albeit up slightly from a couple years ago While high demand areas show slightly higher inventory than the frenzied peak Covid period, their unit sell through is also up year over year from last year's first quarter, likely due to slightly more selection and the upper end of the market's continued interest in prime areas In some secondary areas, another rise in interest rates has impacted the appetite for vacation rental investment and thus some areas which cater to that segment have had inventory rise more quickly
Values have continued a steady upward trend for the most part There appear to be some inventory ratios that may lead to slight price discounting in certain markets, but high demand areas continue to see healthy active listing to pending contract ratios It is important to consider what the micro-market is like in your area when developing a selling strategy with your agent.
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.
The mid market sales remain exactly the same as the year before, but $1 million to 2 million segment sales tripled from 2023 to 2o24 and the ultra-luxury market sales were five times higher, in part to the amount of eager buyers entering the market in January, part due to inflation and increased housing prices, and in part to growth of Atlantic Beach and Emerald Isle luxury market
ATLANTIC
Q1 Homes Sold
LAST 90 DAYS
BEACH & EMERALD ISLE
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
With an expanded inventory, the sales in Bald Head and Southport are seeing a favorable increase across the luxury market The mid-market saw a 13% increase, while the two luxury markets saw roughly a 35% increase
BALD HEAD ISLAND & SOUTHPORT
Q1 Homes Sold
LAST 90 DAYS
CAROLINA & KURE BEACH
With its proximity to Wilmington, the ferry to Southport, 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 $600,000-$1 million segment saw a 16% increase in sales from 2023 to 2024, but also shows an increase in the number of active listings and a more balanced amount of pending transactions. The increase in new construction in Carolina & Kure Beach has contributed to the expansion of new listings across all price points The $1 million-$2 million category as well displayed a 57% increase in closed transactions, and the ultra-luxury segment also experienced a 400% increase in sold transactions from 2023 first quarter to 2024 first quarter
CAROLINA BEACH & KURE BEACH
Q1 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 is historically a little tighter in this market due to the ongoing development of Porter’s Neck & Hampstead and the limited space and transactions on Figure Eight Island. There was a 7% drop in sales in the $600,000-$1 million market from 2023 to 2024, a 33% increase in the $1 million-$2 million segment and a 100% increase in the ultra-luxury segment
FIGURE 8 ISLAND, PORTER'S NECK & HAMPSTEAD
Q1 Homes Sold
LAST 90 DAYS
HOLDEN BEACH & OAK ISLAND
Holden Beach & Oak Island comprise a portion of 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 a 20% decrease in the mid-market segment, but an astonishing 72% increase in the luxury range (1M2M) The ultra-luxe market stayed the same across the 2023 and 2024 first quarter sales, however there are more active listing than there were last year this time.
HOLDEN BEACH & OAK ISLAND
Q1 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 first quarter from 2023 to 2024, with a 14% decrease in the $600,000-$1 million segment and a 11% decrease in the $1 million-$2 million segment The $2 million plus segment sales stayed the same but there is a large increase in active listings.
Q1 Homes Sold
LAST 90 DAYS ONSLOW COUNTY
TOPSAIL ISLAND & SURF CITY
Topsail Island is a barrier island almost an hour north of Wilmington Folklore has it that the island was named Topsail because pirate ships hid behind the island with their topsails visible from the sea.Topsail Island has long been a vacation spot favorite and Surf City is one of the most popular cities on Topsail Island.
There was a major spike in the amount of active transactions and inventory across the board, but particularly the luxury range, which saw the number of active listings in the first quarter of 2024 doubled from the first quarter of 2023 The $600,000 to $1 million saw a 28% decrease and the $1 million-$2 million saw a 17% increase, while the market above $2 million remained exactly the same in closings.
TOPSAIL & SURF CITY
Q1 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, only minutes away from the white sand beaches of Wrightsville.
In the $600,000 and $1 million market segment, there was a 17% decrease from the first quarter of 2023 and the first quarter of 2024 The $1 million-$2 million market saw a 9% decrease in 2024, but almost double the active listings then the previous year The $2 million plus segment stayed exactly the same, but with a slight increase in active listings from the previous year
WRIGHTSVILLE
Q1 Homes Sold
LAST 90 DAYS
BEACH & LANDFALL
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 place to move to in the US
The $600,000 and $1 million market segment saw a 11% increase in the first quarter of 2024 from the first quarter of 2023. The $1 million-$2 million market increased by 92%, going from 24 to 46 sales, with the active listings doubling as well from the previous year and the $2 million plus segment saw a 100% increase in 2024 and the number of active listing quadrupled
Q1 Homes Sold
LAST 90 DAYS WILMINGTON
COASTAL MARKET FORECAST
Inventory Loosens and The Luxury Segment Rapidly Expands
At the conclusion of the first quarter, the market across the board has a more comfortable inventory level than seen in quite some time, although with the entrance of expectant buyers to the market following the interest rate drops and the beginning of spring season, that inventory will probably go quickly.
The increase of the luxury market segment ($1M-$2M) in Coastal NC was significant due to several factors. One, the inflation and increase in housing prices have bumped some houses into new pricing segments. Two, the rapid inbound migration into Wilmington and Coastal NC have put a strain on inventory and many developers have been building more elevated homes in the area for the wealthy out of town buyers seeking their coastal bliss. And three, Wilmington and Coastal NC is now viewed as a luxury location and so the value and amount of homes in that category have increased.
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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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 most recent report on coastal North Carolina's emerging markets, please visit the link below https://bit.ly/3rps3PT
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