Outer Banks Real Estate Market Report - August 2023

• This report is provided to you by Rick Kinne (REALTOR) with Village Realty Holdings, LLC in Nags Head, North Carolina. My Outer Banks real estate market report is a monthly feature for my soundfronts OBX Facebook page and soundfronts.com website, intended to keep you informed of the local real estate market.

• Before we get started, I need to preface the report with some stipulations and provide some context: The Outer Banks Association of Realtor’s disclosure is printed on all of OBAR’s statistical reports and reads as follows:

“This representation is based in whole or in part on data supplied by, and to the Subscribers of the Outer Banks Association of REALTORS® Multiple Listing Service. Information contained herein is deemed reliable but not guaranteed. Data maintained by the OBAR MLS is for its own use and may not reflect all real estate activity in the market.”

• Clearly, sales take place through For Sale By Owner (FSBO’s), Real Estate Agents who are not Realtors and therefore don’t have MLS access, etc. However, I don’t believe that amount is significant.

• The Outer Banks market covered by OBAR is a bit unique. It’s a mixed market but it’s primarily a vacation/rental home market. Coverage stretches from lower Currituck County and the Dare County mainland, all along the beaches from Carova through Ocracoke.

Now for the August 2023 numbers…

This representation is based in whole or in part on data supplied by, and to the Subscribers of the Outer Banks Association of REALTORS® Multiple Listing Service. Information contained herein is deemed reliable but not guaranteed. Data maintained by the OBAR MLS is for its own use and may not reflect all real estate activity in the market. Based on information from the Outer Banks Association of REALTORS® for the period (9/1/2022) through (8/31/2023).

Sales – All Classes

Sales – Residential

Sales - Lots/Land

This representation is based in whole or in part on data supplied by, and to the Subscribers of the Outer Banks Association of REALTORS® Multiple Listing Service. Information contained herein is deemed reliable but not guaranteed. Data maintained by the OBAR MLS is for its own use and may not reflect all real estate activity in the market. Based on information from the Outer Banks Association of REALTORS® for the period (9/1/2022) through (8/31/2023).

Residential Inventory

The Absorption Rate for Homes as of September 1, 2023 is 5 Months (calculation assumes under contract listings are active)

Residential Days on Market

This representation is based in whole or in part on data supplied by, and to the Subscribers of the Outer Banks Association of REALTORS® Multiple Listing Service. Information contained herein is deemed reliable but not guaranteed. Data maintained by the OBAR MLS is for its own use and may not reflect all real estate activity in the market. Based on information from the Outer Banks Association of REALTORS® for the period (9/1/2022) through (8/31/2023).

Lots and Land Inventory

The Absorption Rate for Land as of September 1, 2023 is 9 Months (calculation assumes under contract listings are active)

Lots and Land Days on Market

This representation is based in whole or in part on data supplied by, and to the Subscribers of the Outer Banks Association of REALTORS® Multiple Listing Service. Information contained herein is deemed reliable but not guaranteed. Data maintained by the OBAR MLS is for its own use and may not reflect all real estate activity in the market. Based on information from the Outer Banks Association of REALTORS® for the period (9/1/2022) through (8/31/2023).

Under Contract – All Classes

Inventory – All Classes

This representation is based in whole or in part on data supplied by, and to the Subscribers of the Outer Banks Association of REALTORS® Multiple Listing Service. Information contained herein is deemed reliable but not guaranteed. Data maintained by the OBAR MLS is for its own use and may not reflect all real estate activity in the market. Based on information from the Outer Banks Association of REALTORS® for the period (9/1/2022) through (8/31/2023).

Sales by Year…

Distressed Property Sales…

This representation is based in whole or in part on data supplied by, and to the Subscribers of the Outer Banks Association of REALTORS® Multiple Listing Service. Information contained herein is deemed reliable but not guaranteed. Data maintained by the OBAR MLS is for its own use and may not reflect all real estate activity in the market. Based on information from the Outer Banks Association of REALTORS® for the period (9/1/2022) through (8/31/2023).

New Construction (Dare County)

Building Permits (Dare County)

This representation is based in whole or in part on data supplied by, and to the Subscribers of the Outer Banks Association of REALTORS® Multiple Listing Service. Information contained herein is deemed reliable but not guaranteed. Data maintained by the OBAR MLS is for its own use and may not reflect all real estate activity in the market. Based on information from the Outer Banks Association of REALTORS® for the period (9/1/2022) through (8/31/2023).

Building Permits (Currituck County)

Building Permits (Currituck County)

This representation is based in whole or in part on data supplied by, and to the Subscribers of the Outer Banks Association of REALTORS® Multiple Listing Service. Information contained herein is deemed reliable but not guaranteed. Data maintained by the OBAR MLS is for its own use and may not reflect all real estate activity in the market. Based on information from the Outer Banks Association of REALTORS® for the period (9/1/2022) through (8/31/2023).

Sales by Town…

This representation is based in whole or in part on data supplied by, and to the Subscribers of the Outer Banks Association of REALTORS® Multiple Listing Service. Information contained herein is deemed reliable but not guaranteed. Data maintained by the OBAR MLS is for its own use and may not reflect all real estate activity in the market. Based on information from the Outer Banks Association of REALTORS® for the period (9/1/2022) through (8/31/2023).

Sales by Town…

This representation is based in whole or in part on data supplied by, and to the Subscribers of the Outer Banks Association of REALTORS® Multiple Listing Service. Information contained herein is deemed reliable but not guaranteed. Data maintained by the OBAR MLS is for its own use and may not reflect all real estate activity in the market. Based on information from the Outer Banks Association of REALTORS® for the period (9/1/2022) through (8/31/2023).

Sales by Town…

This representation is based in whole or in part on data supplied by, and to the Subscribers of the Outer Banks Association of REALTORS® Multiple Listing Service. Information contained herein is deemed reliable but not guaranteed. Data maintained by the OBAR MLS is for its own use and may not reflect all real estate activity in the market. Based on information from the Outer Banks Association of REALTORS® for the period (9/1/2022) through (8/31/2023).

Sales by Town…

This representation is based in whole or in part on data supplied by, and to the Subscribers of the Outer Banks Association of REALTORS® Multiple Listing Service. Information contained herein is deemed reliable but not guaranteed. Data maintained by the OBAR MLS is for its own use and may not reflect all real estate activity in the market. Based on information from the Outer Banks Association of REALTORS® for the period (9/1/2022) through (8/31/2023).

Sales by Town…

This representation is based in whole or in part on data supplied by, and to the Subscribers of the Outer Banks Association of REALTORS® Multiple Listing Service. Information contained herein is deemed reliable but not guaranteed. Data maintained by the OBAR MLS is for its own use and may not reflect all real estate activity in the market. Based on information from the Outer Banks Association of REALTORS® for the period (9/1/2022) through (8/31/2023).

Sales by Town…

This representation is based in whole or in part on data supplied by, and to the Subscribers of the Outer Banks Association of REALTORS® Multiple Listing Service. Information contained herein is deemed reliable but not guaranteed. Data maintained by the OBAR MLS is for its own use and may not reflect all real estate activity in the market. Based on information from the Outer Banks Association of REALTORS® for the period (9/1/2022) through (8/31/2023).

Wrap-up… So, what does it mean for you?

• There is still demand for OBX real estate but low inventory and high interest rates continue to impact sales

• Residential Sales are down 32% and Land Sales are down 33% over August 2022!

• Under Contract listings are down 24% over last year. There are 373 units under contract as of September 1, 2023.

• MLS Inventory is down 22% and home prices remain high!

Ø Residential inventory is down 14% over last year and is at 470 units with the Median home price at $515,000! (See individual pages by town).

Ø Lots/Land inventory is down 29% over last year and is at 333 units

• Absorption is a direct reflection of inventory for both homes and land. Home absorption was at 5 months and Land was at 9 months as of Septembet 1, 2023 . Representative of a moderate Seller’s Market!

• The average Days on Market (DOM) dropped slightly to 51 days for homes and was up to 133 days for land

• Appraisers, Inspectors, Surveyors, and Attorneys are back to a normal pace

• It is harder to show homes with the rental season in full swing

• Low inventory is our “new normal” with slight increases recently. There are still considerations for buying land and building new. The price of lumber and other building supplies, supply chain issues, and many builders are booked for the next 18 – 24 months.

• Seller’s –It remains a great time to sell! Nice homes that are priced correctly are going under contract in a reasonably short amount of time. Multiple offers are not as prevalent as they were during the market peak and not as many are selling over asking price but it still happens. DOM dropped slightly and is reasonable. We are holding steady with a moderate seller’s market overall. Numbers are similar to 2020. We will continue to keep a close eye on inventory!

• Buyer’s – It remains challenging to find the “right” home due to low inventory but it is better than it was. Nice homes are still moving fairly quickly despite higher prices and some are still getting over asking price. We are not seeing the bargains that were once commonplace several years ago. Be prepared - get pre -approved, be ready to make a move quickly, and to potentially address multiple offers! Interest rates are a factor for many buyers and are currently in the 7%+ range.

• An advantage of buying now is that there is not a lot of competition since many people are waiting to see if prices and interest rates will drop. Several mortgage companies have attractive Arm Programs if you don‘t want to wait. I will add that no one is predicting drastic reductions in home prices.

• Due Diligence Fees (money at risk) is still required to make an offer attractive. How much can you risk? Offers need to be carefully structured. It can still be done. After all, 139 people did it in August and we are still at 373 under contract!.

• Higher interest rates in general (especially on 2nd homes and high balance loans), along with the impact of inflation is still detering sales.

• Remember that most homes remain under contract for 45 to 60 days before closing. So, data is always behind. it‘s like turning a large ship.

• So, what are we predicting? If we only had a crystal ball. Our best guess is that inventory will remain low. The Fed recently increased rates to try and further curb inflation. We expect to see more buyers coming to market in the Fall but we don’t expect a banner year for sales. We believe home prices will remain somewhat flat – up a little in some towns and down a little in others but nothing dramatic.

• The National Association of Realtor is forecasting mortgage rates to average between 6.5% and 6.75% by the end of the year, existing home sales to be down by 12.9%, and home prices to be down by .4%. We shall see!

• It is always a good time to plan and strategize if you are interested in buying or selling. Call me today to get started!

• Please feel free to call, e mail or text me at any time with questions or assistance...