The Outer Banks Association of Realtors has released the first quarter market results. You can get the complete report here. Some highlights from the report are outlined in this blog. Anyone reading statistics only does so, to try to understand what is happening and what is likely to happen in the future. It can be some dry reading.
Like many areas in the country, real estate and building, in general, is recovering. Albeit, it is recovering at a slower pace. But, compared to the irrational market before the bubble burst, this is much healthier. The statistics support what a careful observer would also see. There is not as much inventory of listings for sale; compared to a few years ago, when listings were on the market longer. This is putting some upward pressure on prices but it is not evenly distributed across the entire Outer Banks.
The quantity sold in the first quarter is down 1% compared to last year, while the volume sold is up by 15%. The average sale price has increased by 22% compared to last year’s first quarter. The number of active listings is down by 7%. So, there is some indication of upward pressure on prices and decreasing inventory. However, examining each component of the total is more revealing. The overall market averages are skewed due to a large commercial property sale.
The overall number of properties sold as distressed (bank owned and short sales) decreased by 49% with volume decreasing by 37% compared to last year’s first quarter. The average sale price increase by 15%.
The quantity of Bank Owned property decreased by 54% while the average sale price increased by 29% this year compared to last year’s first quarter. It appears the foreclosure inventory is becoming depleted and prices have stabilized and are increasing.
The quantity of residential sales decreased by 1% with the volume sold increasing by 11% from the first quarter 2016 compared to the first quarter of 2015. The number of active listing fell by 8% while the average sale price increased by 13%; the median sale price by 2% during the same time period.
The 2016 median price for the Outer Banks areas are listed below with the percent change from 2015:
|Town||Median Price||% Change from 2015|
|Kill Devil Hills||$270,000||14%|
The lots and land quantity sold is the only category that increased (5%) in the first quarter 2016 compared to the same period in 2015. The volume increased by 31%. During the same period the average sale price increased by 22% while the median fell by 9%. The number of active listings also fell by 4%. Perhaps, the uptick in this category can be indicative of future speculation.
By far the biggest differences when comparing the first quarter 2015 to 2016 is for commercial property. While the sample size is small (6 for 2016 and 11 for 2015); the volume sold increased by 176% with the average sale price increasing by 406%, the median up by 473% between the first quarter 2015 compared to first quarter 2016. The number of active commercial property listing fell by 26%. The results here are due to a large sale and not likely part of a new trend.
Now is the ideal time to invest in Outer Banks real estate. Prices are relatively low compared to market conditions in 2007, financing is readily available and mortgage rates are at historical lows. The rental market is strong to provide income from the investment for years to come. For more information on buying Outer Banks Real Estate, or selling Outer Banks Real Estate or to learn more about the Outer Banks in general, please check out our blog.