There are many reasons to be celebrating in the Outer Banks. Spring is just around the corner and the real estate market is really heating up. The Outer Banks Association of Realtors released the February MLS Statistical Report – you can get the full report here.
The market is remarkably more active with residential sales up a whopping 18%! Raju Uppalapati, from Eillu Boutique Real Estate Team, said “This is the largest increase I have seen in January and February in 11 years”.
Some highlights from this month’s report follows.
Residential inventory decreased by 10% compared to last year while the median sale price increased by 6%. The lack of inventory is likely to continue to put increased pressure on prices. The quantity of residential property sold increased by 17%.
Lots and land volume sold fell by 12% with the quantity sold fell by 30%. The average sale price for land increased by 27% while the median sale price is up by 25%. Inventory is down by 15% compared to last year.
Commercial unit sales are down by 67%, with 1 unit sold compared to 3 last year. The average and median sale prices have little relevance with such a small sample. Commercial inventory is down 3% compared to last year.
Single family unit sales increased by 22% compared to last year. The volume sold increase at 16% with the average sale decreased by 4% but the median sale price increased by 4%.
Condos unit sales increased by 16% compared to last year; up from 11% last month. Condo median prices increased by a healthy 22%, with the average sale price increasing at 4% compared to last year.
Residential land unit sales fell by a whopping 32% compared to a year ago with average sale price up by 17% and the median up by 18%.
Last month’s aberration regarding short sales and foreclosures continues this month. Bank Owned unit sales are up a startling 70% for January and February 2017. More than 50% of the bank owned sales were for homes under $200,000. The Outer Banks Association of Realtors commented that “One can only speculate as to whether the inventory of lower priced bank owned homes is being ‘cleaned out’”.
Sales for bank owned properties increased from 10 units to 17 units or 70% compared to last year. At the same time, the average sale price decreased by 46% and the median sale by 22%.
On the other hand, short sale units sold increased by 22% with the average sale price down by 4% but the median sale price increased by a startling 77% compared to last year.
Overall, the quantity of distressed property sold increased by 26% compared to the same period in 2016. The average price decreased by 21% and the median decreased by 37%.
The effect distressed real estate will have on the overall Outer Banks market will continue to diminish as foreclosure and short sale inventory is depleted and the market returns to pre-recessionary levels of distressed real estate.
Outer Banks Town Statistics
The February 2017 median sale prices for the towns in the Outer Banks and the percent change compared to 2016 appear below:
Corolla experienced a sharp increase and had the largest percentage gain of 28% compared to 2016. The next highest YTD increase was Kitty Hawk at 18%.
The Outer Banks real estate market is heating up. Activity in January and February has been the strongest in recent memory. Perhaps, the delightful weather a few weeks back and looking forward to spring has peeked interest up and drawn people out earlier than in years past.
Other factors contributing to early optimism in the Outer Banks real estate market include less uncertainly and potential mortgage rate increases. The uncertainty during the election is over and businesses and individuals are optimistic toward future employment and economic prospects. Buyers and investors should act now before the anticipated mortgage rate increases happen later this year to save for years to come. Smart buyers and investors will lock in rates now before the increase. Buy with Eillu and save more with our buyers rebate plan.
If you have considered selling your Outer Banks home, now may be the best time. The lower inventory levels will allow your property to be seen with less competition. The strong demand will sell your home with fewer days on the market. Our 1.5% listing commission will save you thousands of dollars!
The rental market continues to be strong to provide income from the investment and enjoyment for the family for years to come. Purchasing today will allow you to realize the seasonal rental income while only having 8 or fewer months of expenses. Buy today and have plenty of time to get ready for the 2017 rental season. 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.