Rick Kinne Senior Associate Broker 252-256-2670 (Primary) 252-449-2047 (Office)
Soundfronts.com – OBX Market Report (June 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. Based on information from the Outer Banks Association of REALTORS® for the period (671/2021) through (6/30/2022).
Soundfronts.com OBX Market Report – June 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.”
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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.
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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 June 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 (671/2021) through (6/30/2022).
Sales – All Classes
Sales – Residential
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 (671/2021) through (6/30/2022).
Residential Inventory
The Absorption Rate for Homes as of July 1, 2022 is 4 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 (671/2021) through (6/30/2022).
Sales – Lots and Land
Lots and Land Inventory…
The Absorption Rate for Land as of July 1, 2022 is 7 Months (calculation assumes under contract listings are active)
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 (671/2021) through (6/30/2022).
Lots and Land Days on Market
Total 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 (671/2021) through (6/30/2022).
Under Contract – All Classes
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 (671/2021) through (6/30/2022).
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 (671/2021) through (6/30/2022).
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 (671/2021) through (6/30/2022).
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 (671/2021) through (6/30/2022).
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 (671/2021) through (6/30/2022).
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 (671/2021) through (6/30/2022).
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 (671/2021) through (6/30/2022).
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 (671/2021) through (6/30/2022).
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 (671/2021) through (6/30/2022).
Wrap-up… So, what does it mean for you?
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OBX real estate remains in high demand but the lack of inventory and interest rates are continuing to impact sales Residential Sales are down 23% and Land Sales are down 9% over June 2021! Under Contract listings were at 482 as of July 1, 2022 and are down 34% over last year. MLS Inventory is down by 3% but residential inventory has been slowly creeping up and is now up 25% over last year (but still low). Home prices remain high! Ø Residential inventory is up by 25% over last year and is at only 529 units with the Median home price up by 3% or $545,000 (See individual pages by town). Ø Lots/Land inventory is down 21% or 465 units over last year Absorption is a direct reflection of inventory for both homes and land. Home absorption was at 4 months and Land was at 7 months as of July 1, 2022 . Representative of a strong Seller’s Market! The average Days on Market (DOM) is down significantly over this time last year and is at 25 days for homes and 176 days for land Appraisers, Inspectors, Surveyors, and Attorneys remain busy 2022 vacation rentals are having another banner year Many vacation rental homes are booked. So, showings are limited to turnover days in most cases (Saturdays or Sundays). Home inventory is extremely low but 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 – Prices have continued to rise due to record low inventory and strong demand. It remains a great time to sell! Nice homes that are priced correctly are going under contract very quickly. Multiple offers remain commonplace with many homes selling over asking price. DOM remains very low. Some homes are going under contract the same day they are listed. We are in a strong Seller’s market. Inventory is starting to slowly creep up but this is historically our busiest listing season. We will keep an 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 (671/2021) through (6/30/2022).
Wrap-up…So, what does it mean to you? •
Buyer’s – It is challenging to find the “right” home due to record low inventory. Nice homes are moving very quickly despite higher prices and many are getting over asking price. We are not seeing the bargains that were once commonplace. So, be prepared - get preapproved, be ready to make a move quickly, and expect to address multiple offers! Interest rates are rising and are predicted to continue in that directionas 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.
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Some Buyers are still purchasing “sight unseen“ or based on a virtual tour, and then doing an “in person“ showing during due diligence. Homes are moving too fast in many cases to wait for weekend showings. Due Diligence Fees (money at risk) is required to make an offer attractive. How much can you risk? Offers need to be carefully structured. It can still be done. After all, 327 people did it in May and we are still at 557 under contract!
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As of now, we are seeing some inventory coming on the market but it could just be the season. We will remain positve and continue to track. Higher interest rates in general (especially on 2nd homes and high balance loans), along with the impact of inflation appears to be detering some sales. Remember that most homes remain uner contract for 45 to 60 days before closing. So, data is always behind. Trying to determine when the market will peak is really not possible as the impacts appear slowly (it‘s like turning a large ship). 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...
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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 (671/2021) through (6/30/2022).