Coastal Q2 2024 Market Report

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LUXURY MARKET REPORT

Coastal | Q2 2024

Q2 Market Report | July 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

FORECAST

Inventory Remains Stable

PODCAST & VIDEOS

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Coastal Market Remains Healthy After Spring Season

The Cape Fear Region has been in a state of change over the past quarter with inventory slowly climbing over the past three months, however absorption rates have been holding steady to offset some of the potential pressure of housing prices.

The market is also continuing to see the shift that is resulting in higher days on market, up 12% over last year and more price reductions are being seen as sellers are understanding the market has come back to a more “normal” pace The Wrightsville Beach, Landfall and Wilmington markets remain desirable to buyers, particularly in the $600k-$1m price range The most recent reports show inflation is slowing, and is now at 3%, with sights set on 2.4% as a 2024 average. Interest rate numbers are still predicted to come down towards the end of 2024 The Dow Jones Industrial remained relatively consistent throughout the quarter at historically high levels which has fueled the ultra luxury segment

According to Freddie Mac, the US weekly averages of interest rates are now floating just below the 7% range for a 30 year fixed mortgage and many consumers seem to have reached a point where they are taking their time, resulting in the aforementioned increased days on market Active listings have leveled off over the month to month average during the 2nd quarter and pending sales have done the same Median sales prices have increased at 5 67% over last year and the market has held steady in closed sales over 2023

The Cape Fear region is still a strong market and all indications still show that coastal property is still on the top of the list for a lot of home buyers

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.

In each market segment, the active listings increased in the second quarter from 2023 to 2024 increased significantly as the COVID frenzy subsided and inventory built back up, also indicated by the decreased pending status as more homes sit on the market The sold units increased across the board as well from 2023 to 2024

ATLANTIC 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 and active listings, the sales in Bald Head and Southport are seeing a favorable increase across the luxury market The mid-market saw a 20% increase and the luxury market saw roughly a 55%, while the ultra-luxe market segment saw a 50% decrease

BALD HEAD ISLAND & SOUTHPORT

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 $600,000-$1 million segment saw a 30% 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 $1 million-$2 million category as well displayed a 78% increase in closed transactions, and the ultra-luxury segment stayed the same

CAROLINA BEACH & KURE BEACH

Q2 Homes Sold

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, but despite that there was a 2% increase in sales in the $600,000-$1 million market from 2023 to 2024, a 71% increase in the $1 million-$2 million segment and a 600% increase in the ultra-luxury segment

FIGURE 8 ISLAND, PORTER'S NECK & HAMPSTEAD

Q2 Homes Sold

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 a 20% decrease in the mid-market segment, but a 23% increase in the luxury range (1M-2M) The ultraluxe market decreased by 60% from the 2023 and 2024 second quarter sales, however there are almost twice as many active listings as there were last year.

HOLDEN BEACH & OAK ISLAND

Q2 Homes Sold

OCEAN ISLE & SUNSET BEACH

Ocean Isle Beach and Sunset Beach are two popular islands in the furthest southwest corner of North Carolina. Ocean Isle was named in 1949 by Virginia Williamson whose husband, Odell Williamson, purchased the land as a resort development project Sunset Beach is unique among the southeastern North Carolina barrier island communities, as the Town of Sunset Beach encompasses both a mainland and an island It earned its name in 1955 by Manson C Gore who was impressed by the sunsets the southeast-facing island offered and it offers rare views of the sun setting over the Atlantic Ocean

Ocean Isle Beach and Sunset Beach experienced a 21% increase in the $600,000-$1 million segment and a 12% increase in the $1 million-$2 million segment The $2 million plus segment doubled in sales as this area continues to develop a robust luxury market.

OCEAN ISLE & SUNSET BEACH

TOPSAIL ISLAND

Topsail Island is a barrier island almost an hour north of Wilmington. Although folklore has it that the island was named Topsail because pirate ships hid behind the island with their topsails visible from the sea, the name came from New Topsail Inlet 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 second quarter of 2024 doubled from the second quarter of 2023. The ultra luxury range had four times as many active listings in 2024 as 2023. The $600,000 to $1 million saw a 8% decrease in sales, but the $1 million-$2 million saw a 52% increase, while the market above $2

million increased by 33%

TOPSAIL & SURF CITY

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 $600,000 and $1 million market segment, there was a 17% decrease from the second quarter of 2023 and the second quarter of 2024 The $1 million-$2 million market saw a 4% decrease in 2024 and over half the active listings then the previous year The $2 million plus segment decreased by 33%, but with a slight increase in active listings from the previous year

WRIGHTSVILLE 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 in the US

The $600,000 and $1 million market segment saw a 13% increase in the second quarter of 2024 from the second quarter of 2023. The $1 million-$2 million market stayed exactly the same, with the active listings doubling as well from the previous year and the $2 million plus segment saw a 114% increase in 2024 and the number of active listings increased by 16%

WILMINGTON

Q2 Homes Sold

COASTAL MARKET FORECAST

Inventory Remains Stable

At the conclusion of the second quarter, the market across the board has a more comfortable inventory level than seen in previous years, although diminished a little after the spring semester.

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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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 most recent report on coastal North Carolina's emerging markets, please visit the link below

https://bit.ly/3rps3PT

Wilmington Office - IJ Coastal

527 Causeway Drive

Wrightsville Beach, NC 28480

910-300-5140

Charlotte Office 1515 Mockingbird Lane Suite 900

Charlotte, NC 28209

704-817-9826

Lake Norman Office

21025 Catawba Ave #101

Cornelius, NC 28031

704- 655-0586

Lake Norman North Shore Office

350 Morrison Plantation Parkway, Suite C1

Mooresville, NC 28117

980-435-5169

Asheville Office - Ivester Jackson Blackstream

18 S Pack Square

Asheville, NC 28801

828- 367-9001

Highlands Office - Highlands Cashiers Christie’s

210 North Fifth Street

Highlands, NC 28731

828-526-0000

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