Outer Banks Real Estate Market Report - September 2022

Rick Kinne

OBX Market Report

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 September 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 (10/1/2021) through (9/30/2022).

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 (10/1/2021) through (9/30/2022).

Residential Inventory

The Absorption Rate for Homes as of October 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 (10/1/2021) through (9/30/2022).

Sales

Lots and Land

Lots and Land Inventory…

The Absorption Rate for Land as of October 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 (10/1/2021) through (9/30/2022).

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 (10/1/2021) through (9/30/2022).

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 (10/1/2021) through (9/30/2022).

New

(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 (10/1/2021) through (9/30/2022).

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 (10/1/2021) through (9/30/2022).

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 (10/1/2021) through (9/30/2022).

Sales by Town

Southern Shores

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 (10/1/2021) through (9/30/2022).

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 (10/1/2021) through (9/30/2022).

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 (10/1/2021) through (9/30/2022).

Sales by Town

Roanoke Island

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 (10/1/2021) through (9/30/2022).

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 (10/1/2021) through (9/30/2022).

So, what does it mean for you?

• There is still demand for OBX real estate but low inventory and increasing interest rates are continuing to impact sales

• Residential Sales are down 24% and Land Sales are also down 24% over September 2021!

• Under Contract listings were at 471 as of October 1, 2022 and are down 40% over last year.

• MLS Inventory has been fairy stable recently but is down 6 % over 2021. Home prices remain high!

Ø Residential inventory is up by 5% over last year and is at only 510 units with the Median home price up by 20% or $595,000 (See individual pages by town).

Ø Lots/Land inventory is down 24% over last year and is at 568 units

• 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 October 1, 2022 . Representative of a moderate Seller’s Market!

• The average Days on Market (DOM) is down significantly over this time last year and is at 34 days for homes and 147 days for land

• Appraisers, Inspectors, Surveyors, and Attorneys remain busy

• 2022 vacation rentals appeared to have another banner year but it is getting easier to show homes as things wind down.

• Home inventory remains 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 It remains a great time to sell! Nice homes that are priced correctly are going under contract quickly. 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. Inventory is starting to slowly rise but this is historically our busiest listing season. 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 (10/1/2021) through (9/30/2022).

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

• Buyer’s

It remains 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 prepared get pre approved, be ready to make a move quickly, and to potentially address multiple offers! Interest rates have risen 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.

• 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, 167 people did it in September and we are still at 471 under contract!

• 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 is detering some 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.

• 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 (10/1/2021) through (9/30/2022).