Outer Banks Real Estate Market Report - May 2024

Soundfronts.com OBX Market Report

• 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.

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 (6/1/2023) through (5/31/2024).

Executive Summary

Summary - So, what does it mean for you?

• High interest rates and lower inventory are still driving reduced demand and sales. Sales were down 9% over May 2023.

• Residential Sales are up by 5% and Land Sales are down 21% over May 2023. Under Contract listings are down 19% over last year. There are only 324 units under contract as of June 1, 2024.

• Good News! MLS Inventory is up 41% and home prices remain high!

Ø Residential inventory is up 67% over last year and is at 639 units with the Median home price at $590,000 (See individual pages by town).

Ø Lots/Land inventory is up 15% over last year and is at 409 units

• Absorption is a direct reflection of inventory for both homes and land. Home absorption was at 6 months and Land was at 11 months as of June 1, 2024 . Representative of a Neutral Market!

• The average Days on Market (DOM) fell to 56 days for homes and was up to 130 days for land

• Appraisers, Inspectors, Surveyors, and Attorneys are operating at a normal pace

• It is getting more difficult to show home with the rental season beginning to ramp up.

• Interest rates continue to fluctuate and were up to 6.9% for a conventional loan this week and 7.2% for a 2nd home

• There are still considerations for buying land and building new. The price of lumber and other building supplies have come down a bit but remain above pre-pandemic levels, supply chain issues remain for some items, and many builders are booked for the next 10 – 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 remains reasonable. We have moved to a neutral market overall for the first time in years. May Sales numbers were slightly up over 2023. We will continue to keep a close eye on inventory and interest rates!

for the period (6/1/2023) through (5/31/2024).

Summary So, what does it mean to you?

• Buyer’s – It remains somewhat challenging to find the “right” home due to low inventory but it continues to get better. Nice homes are still moving fairly quickly despite higher prices and a few 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 at + or6.9%.

• An advantage of buying now is that there is less competition since many people are waiting to see if prices and interest rates will drop further. Most 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, 173 people did it in May and we are still at 324 units under contract!.

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

• The conforming loan limit was raised to $750K for 2024

• 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 continue to remain low but will also continue to increase going into the Summer months. The Fed has backed off on additional reductions in 2024. We expect to see more buyers coming to market in the Summer months 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 be closer to 6% in the 4th quarter of 2024.

• 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...

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 (6/1/2023) through (5/31/2024).

Sales – Residential

Sales - Lots/Land

Residential 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 (6/1/2023) through (5/31/2024).

Residential Inventory

The Absorption Rate for Homes as of June 1, 2024 is 6 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 (6/1/2023) through (5/31/2024).

Lots and Land Inventory

The Absorption Rate for Land as June 1, 2024 is 11 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 (6/1/2023) through (5/31/2024).

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 (6/1/2023) through (5/31/2024).

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 (6/1/2023) through (5/31/2024).

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 (6/1/2023) through (5/31/2024).

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 (6/1/2023) through (5/31/2024).

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 (6/1/2023) through (5/31/2024).

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 (6/1/2023) through (5/31/2024).

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 (6/1/2023) through (5/31/2024).

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 (6/1/2023) through (5/31/2024).

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 (6/1/2023) through (5/31/2024).

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 (6/1/2023) through (5/31/2024).