Outer Banks Real Estate Market Report - December 2022

Rick Kinne

Senior

Associate Broker

252-256-2670 (Primary) 252-449-2047 (Office)

(December 2022) Rick Kinne – Village Realty OBX

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. B ased on information from the Outer Banks Association of REALTORS® for the period (1/1/2022) through (12/31/2022).

• 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 December 2022 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 (1/1/2022) through (12/31/2022).

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 (1/1/2022) through (12/31/2022).

Residential Inventory

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 (1/1/2022) through (12/31/2022).

Lots and Land Inventory

The Absorption Rate for Land as of January 1, 2023 is 7 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 (1/1/2022) through (12/31/2022).

Under Contract – 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 (1/1/2022) through (12/31/2022).

Sales by Year…

Dare County Foreclosures…

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 (1/1/2022) through (12/31/2022).

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 (1/1/2022) through (12/31/2022).

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 (1/1/2022) through (12/31/2022).

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 (1/1/2022) through (12/31/2022).

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 (1/1/2022) through (12/31/2022).

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 (1/1/2022) through (12/31/2022).

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 (1/1/2022) through (12/31/2022).

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 (1/1/2022) through (12/31/2022).

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 (1/1/2022) through (12/31/2022).

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 27% and Land Sales are also down 30% over December 2021!

• Under Contract listings were at 365 as of January 1, 2023 and are down 50% over last year.

• MLS Inventory has been creeping up recently and is up 15% over 2021. Home prices remain high!

Ø Residential inventory is up by 47% over last year and is at only 455 units with the Median home price at $515K! (See individual pages by town).

Ø Lots/Land inventory is down 7% over last year and is at 384 units

• Absorption is a direct reflection of inventory for both homes and land. Home absorption was at 3 months and Land was at 7 months as of January 1, 2023 . Representative of a moderate Seller’s Market!

• The average Days on Market (DOM) is down significantly over this time last year but up from last month - 37 days for homes and 159 days for land

• Appraisers, Inspectors, Surveyors, and Attorneys remain busy but appear to be back to a normal pace

• 2022 vacation rentals had another banner year and it is now easier to show homes.

• Home inventory is beginning to increase and we expect more in the Spring.. There are also 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 reasonable amount of time. Multiple offers are not as prevalent as they were a few months ago and not as many are selling over asking price. DOM remains very low but is creeping up. We have transitioned to a moderate seller’s market overall. Inventory is starting to slowly creep up. We will continue to keep a close eye on inventory!

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 (1/1/2022) through (12/31/2022).

So, what does it mean to you?

• Buyer’s – It remains somewhat challenging to find the “right” home due to low inventory but that appears to be slowly getting better as inventory rises. 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. So, be preparedget pre -approved, be ready to make a move quickly, and to potentially address multiple offers! Interest rates are still above 6% as the Fed attempts to curb inflation. Fannie and Freddie have raised rates on all 2nd home purchases and high balance loans effective in April 2022. A good reason to buy 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 donpt want to wait. I will add that no one is predicting drastic price drops.

• 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, 161 people did it in November and we are still at 365 under contract!.

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

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

• So, what do we expect to see in 2023? If we only had a crystal ball. Our best guess is that inventory will remain low, but we will see more homes come on the market in February, March, and April (which is typical of our vacation rental market). We believe that interest rates have peaked. So, we also expect to see more buyers coming to market 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 at 5.8%, existing home sales to be down by 7%, and home prices to be up by .1%. 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...

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 (1/1/2022) through (12/31/2022).