Coastal | Q3 2024
Q3 Market Report | October 2024
COMMUNITY UPDATES
Atlantic Beach & Emerald Isle
Bald Head & Southport
Carolina & Kure Beach
Figure Eight Island, Porter's Neck, & Hampstead
Holden Beach & Oak Island
Ocean Isle & Sunset Beach
Topsail Island & Surf City
Wrightsville Beach & Landfall
Wilmington
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The Market Continues to Slow
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NC & Coastal Market Slows
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 Additionally, there is a historical trend that a small segment of the luxury consumer market has taken a pause during election season and thus the market may see some temporary additional slow down during that period
As the Federal Reserve has commenced the rate reduction cycle in anticipation of possible softening of employment conditions, surprisingly strong employment numbers have caused the bond market to anticipate Fed rate cutting may not be as aggressively pursued as previously thought, thus causing mortgage rates to edge back upward Future Fed rate cuts will likely be tied to its view relative to employment and leading economic indicators and therefore stronger performance in those areas will likely translate into less aggressive rate cutting
The market is also continuing to see the shift that is resulting in higher days on market, up 25% since 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 2 4%, the lowest it’s been since February 2021 Interest rate numbers are still predicted to come down towards the end of 2024 The Dow Jones saw a record breaking jump this year in May as passed 40,000 points for the first time ever after a few years of instability
According to Freddie Mac, the US weekly averages of interest rates are now floating around the 7% range for a 30 year fixed mortgage after a small increase and many consumers seem to have reached a point where they are taking their time, resulting in increased days on market and more price reductions as sellers get more competitive Active listings have leveled off over the month to month average during the third quarter and pending sales have done the same Inventory still remains 40% below the pre-pandemic levels Median sales prices have increased at 1 03% from September 2023 to September 2024 as the third quarter wraps
The Cape Fear region is still a strong market and boasts a significantly higher average income than the rest of the state and all indications still show that coastal property is still a strong draw for retirees and the work from home buyer Location, moderate temperatures and culture are at the top of the list for people looking to relocate
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 real estate market in Atlantic Beach and Emerald Isle for the third quarter shows rising inventory, especially in the $600K-$1M range, with 50 active listings but only 33 homes closed, similar to the third quarter of 2023 In the $1M-$2M range, the market is more balanced, with 19 active listings and 16 homes closed The $2M+ segment remains small but has grown slightly, with 10 active listings and 2 closed sales in the third quarter, compared to 3 closed in 2023 Overall, inventory is up, but sales remain stable across price ranges
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 as one of one of the earliest military settlements at the entrance of the Cape Fear and the coastal beauty has made this area highly desirable Bald Head’s unique atmosphere, exclusivity and ban on cars has also contributed to it becoming a popular destination
The Bald Head and Southport real estate market shows strong activity for the third quarter, particularly in the $600K-$1M range with 50 active listings and 52 closed sales, up from 40 in 2023
The $1M-$2M range is steady, with 33 active listings and 23 closed sales, similar to last year The $2M+ segment has more inventory (22 active listings) and saw an increase in closings, from 2 in 2023 to 6 in 2024 Overall, inventory is rising, but sales remain strong across all price ranges
BALD HEAD ISLAND & SOUTHPORT
Homes Sold
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 real estate market in Carolina and Kure Beach shows a large increase in inventory, particularly in the $600K-$1M range with 103 active listings, compared to 49 closed sales, similar to 2023 The $1M-$2M range has 27 active listings but fewer sales, with only 8 homes pending and 12 closed. The $2M+ segment has minimal activity, with just 6 active listings and no sales reported in the third quarter for either 2024 or 2023. Overall, inventory is significantly up, especially in the lower price range, but sales have remained steady year over year
CAROLINA BEACH & KURE BEACH
Q3 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
The real estate market in Figure 8 Island, Porter's Neck, and Hampstead shows steady performance compared to 2023 In the $600K-$1M range, active listings rose 13 3%, while closed sales stayed nearly the same, up 2.2%. The $1M-$2M range saw a 16.7% drop in closed sales despite a 25% increase in active listings The $2M+ segment had the most notable change, with closed sales up 50% and active listings rising 325% Overall, the market remains stable with some fluctuations and an increase in inventory, especially in the high-end segment
FIGURE 8 ISLAND, PORTER'S NECK & HAMPSTEAD
Q3 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
In the $600K-$1M range, active listings increased significantly in 2024, but fewer houses closed compared to 2023 The $1M-$2M range remained stable, with the same number of closings both years For $2M+ properties, there was minimal activity, with only 7 listings and 1 pending in 2024. Overall, the market has more supply in 2024, but demand seems slower, especially in higher price ranges.
HOLDEN BEACH & OAK ISLAND
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 not only encompasses both a mainland and an island, but it earned its name in 1955 by Manson C Gore who was impressed by the sunsets the southeast-facing island offered and its rare views of the sun setting over the Atlantic Ocean
In the $600K-$1M range, active listings in 2024 were nearly flat (up 1.8%), but closed sales dropped by 11%. In the $1M-$2M range, active listings rose 52%, while closings fell by 29% For $2M+ properties, active listings more than doubled (up 150%), but closings remained low Overall, while listings increased, closed sales declined, indicating weaker demand in 2024
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
The third quarter real estate market in Topsail, North Topsail, and Surf City shows increased active listings, particularly in the $600K-$1M and $1M-$2M ranges, compared to 2023 The $600K-$1M segment saw a rise in active listings (53 vs 40) but a slight drop in closed sales, suggesting buyer caution In the $1M-$2M range, active listings surged to 64, though closed sales remained stable. The $2M+ market had minimal activity, indicating fewer high-end buyers Overall, rising listings point to a more competitive market with cautious buyers.
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
The Wrightsville Beach and Landfall market shows robust activity in the $1M-$2M and $2M+ price ranges Active listings in the $1M-$2M range increased to 24, with 23 closed sales, similar to the previous year In the $2M+ range, active listings rose to 19, with closed sales increasing slightly. The $600K-$1M range had lower activity, with only 11 active listings and minimal pending or closed sales. Overall, the market remains active, particularly in higher price brackets, reflecting strong demand in the luxury segment.
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 top-rated 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
In Wilmington, the $600K-$1M range remains the most active, with 148 active listings and 178 closed sales an increase of about 29% in closed sales from the third quarter of 2023’s 138. In the $1M-$2M range, active listings increased by 95% from last year, rising from 44 to 86, while closed sales rose by approximately 14% (from 44 to 50) The $2M+ segment saw a 110% increase in active listings, from 14 to 30, and a 110% rise in closed sales from 10 to 21 This data reflects strong growth in both mid-range and luxury segments
WILMINGTON
Homes Sold
COASTAL MARKET FORECAST
Though Slowing, The Market Remains Robust
The third quarter of the 2024 real estate market across various regions, including Atlantic Beach, Wilmington, and Topsail, shows distinct trends, primarily driven by price ranges and market activity Across most regions, the $600K-$1M and $1M-$2M ranges remain the most active, with Wilmington, in particular, experiencing high closed sales in the $600K-$1M range, up by about 29% from the previous year. The $2M+ market, though smaller, saw growth in listings and closed sales in areas like Bald Head, Southport, and Wrightsville Beach.
In emerging regions like Holden Beach, Oak Island, and Carolina & Kure Beach, active listings have increased significantly, pointing to a competitive market with more properties available. The luxury segment ($2M+) shows mixed activity, with more consistent demand in Wrightsville Beach, Wilmington, and Figure 8 Island
Overall, the market appears to be competitive with an increase in active listings across most regions and price ranges. Mid-range and luxury homes continue to see steady demand, while price sensitivity might be affecting the lower end of the market in some areas This general trend suggests a stable but cautious buyer market, especially in the $600K-$2M ranges
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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