The statistics on the real estate market of Outer Banks for May were not published. Strong demand continues to be the driving force holding back sales growth and rising house prices.
On June 9, the Association of Realtors of Outer Banks published the MLS statistical report for May. Sales are still strong. Stocks are still extremely low.
As with last month, we are comparing the current monthly statistics with May 2020, when the market was practically suspended. You can see from the chart that it was last July when our current market conditions did improve.
Statistics show that total monthly sales are up 143% and total annual sales are up 105%. Annual sales of residential real estate increased by 95%, sales of plots / land increased by 151%.
Lack of inventory remains a problem. In May, housing stock was down 68% from last year, down 75% from 2019. The inventory of plots / land has decreased by 25%, the general inventory has decreased by 50%.
The “number of days on the market” decreased by 55% to 52 days. The “median number of days on the market,” which I believe is the best indicator of how quickly a property is continuing to sell, was 9 days in May. Correctly priced premium residential properties in all price ranges continue to end quickly with contracts. Out of 333 objects, 60 were concluded contracts within two or less days. 157 of them were on contract for a week or less.
House prices and the Bubble
In last month’s update, we showed data and quotes from industry leaders indicating that the inventory problem will not resolve overnight. This will continue to affect the value of residential properties.
Potential clients say something like, “We’re going to wait six months for prices to fall,” or “The bubble is about to burst, then we’ll buy.” Remember from last month’s report, this is not a bubble, this is an inventory shortage. And in six months, even in twelve months, house prices will rise, not fall.
All four of the top financial institutions are saying roughly the same thing. JP Morgan says, “If you are looking to buy a new home, conditions are better now than in 12 months.”
From Merrill Lynch: “Demand is high because the largest demographic cohort in history is going through the stages of household formation and the peak of home buying in its life cycle.”
Goldman-Sachs says that “as a result, the model predicts double-digit price increases this year and next.”
Morgan Stanley said that “higher interest rates and post-pandemic measures are likely to slow the rate of appreciation, but the upward trajectory remains unchanged.”
If you need a house in external banks or elsewhere and are waiting for prices to fall, you may regret taking action instead of watching prices continue to rise.
Statistics for individual areas
Okay, let’s dive into sales statistics for specific areas. Remember what I said earlier about inflated monthly sales. In the month of May we start:
- Corolla – Sales up 172% – Average selling price increased 24% to $ 692,000.
- Duck – Sales Up 220% – Average Selling Price decreased 25% to $ 390,000. However, 17 of them were co-owned, selling a certain number of weeks of ownership, 5 plus weeks, and not the property itself. Excluding these 15 units that were sold, the average price was $ 540,000.
- Southern Shores – Sales Up 129% – Average Selling Price increased 20% to $ 610,000.
- Kitty Hawk – Sales Up 70% – Average Selling Price increased 21% to $ 477,000.
- Colington – Sales Up 67% – Average Selling Price increased 14% to $ 340,000.
- Kill Devil Hills – Sales Up 23% – Average Selling Price increased 18% to $ 389,000.
- Nags Head – Sales Up 169% – Average Selling Price increased 17% to $ 560,000.
- All Hatteras – Sales up 564%! 73 units vs. 11 – Average selling price increased 29% to $ 484,000.
- Roanoke Island – Sales Up 12% – Average Selling Price increased 15% to $ 406,500.
- Currituck Mainland – Sales rose 80%, with average selling price up 14% to $ 313,900.
- Ocracoke – Sales increased 100% (from 2 units to 4) – Average selling price increased 10% to $ 390,000.
The information in this article is based on information from the Association of External Banks REALTORS® MLS for the period from January 1, 2019 to June 9, 2021.
Mike has long worked as the Outside Banker, both on vacation and as a permanent resident. You may also know him as “Elk”, his nickname since the age of 15, and his name has been on radio for decades in Raleigh, Greensboro / Winston-Salem, Norfolk, and previously at 104 Beach every morning on Moose. & Jody Show ”for over 14 years. Michael has built a successful business with outside banks. He is active in the community and is a founding councilor and vice president of Outer Banks Forever, former president of The First Flight Society, founding member of the Outer Banks Cyclists and Walkers Coalition and former president. and a current member of First Flight Rotary. Elk shares your love for Outer Banks and understands the uniqueness of the area. Find out more at mooseobx.com
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