The Outer Banks Association of Realtors released the January 2018 MLS Statistical Report – you can get the full report here.
While 2017 was a great year for real estate on the Outer Banks, we predict that 2018 will exceed expectations. The stock market is currently taking a beating and interest rates increases will likely hamper the real estate market.
Jan 2018 has the highest volume and unit sales since 2006! It is the best January numbers since 2006 for unit sales and volume sales; this was when the market was really hot before the down turn.
Days on market are also down to 170 days, the lowest for January since 2006. Unfortunately, inventory levels are at the lowest levels since 2005 for all categories – residential, land and commercial.
Real estate unit sales in the Outer Banks for January 2018 were 152 units; an increase of 8% compared to January 2017 from 141 units. Recorded volume for the month was $53,636,122; a 9% increase from last January.
Some highlights from this month’s report follows.
Inventory was considered low for most of 2017. Residential inventory is down 6% compared to last January. Inventory was down 5% compared to the end of 2017.
Lots and land quantity sold increased by 21% in January; up from 16% in December report. The average sale price for lots is up by 43% compared to last year after last month’s report showed prices down by 14%. More lots were sold this year (35) with volume up 72%. the median price increased by 29%. Land inventory is down by 13% after ending last year down by 11%.
There were no Commercial unit sales and commercial inventory is down 18% compared to last year. Commercial inventory includes 58 units active on the market compared to 71 the same time last year.
Distressed sales are down by a whopping 71% compared to last January. There was only 1 short sale and only 3 bank owned sales in January 2018. Short sales are down by 80% and bank owned by 67%.
Since there was only one short sale sold, the average and median comparison to last year is not worthwhile. The small number of bank owned sales also makes the comparison suspect but suggest all sales were in the same range of the reported median price $199k to $200k the reported average price. The average sale price is up 71% from last year and the median is up from 45% last year.
In all of 2017, there were 28 residential short sale units sold, compared to 31 at the end of 2016.
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. This months unit and volume sales suggest we have returned to levels that existed before the down turn.
For the month ending in January 2018, single family units sold increased by 1% (to 100 units) following a 12% increase at the end of last year. In January, the dollar volume increased by 13% with the average sale price up 12% and the median price up 4% – suggesting one or more expensive sales to skew the average.
The average single family home price increased to $449,754. The average sale price for a single family home in the Outer Banks was is $405,273 in December 2017 up from $391,538 for Dec 2016. Median sale prices were $321,500 for January 2018.
Condominium sales in the Outer Banks increased by 18% (13 unit sales) compared to last year and following last month’s 9% year over year increase. The associated dollar volume fell by 10% compared to January 2017.
January 2018 average condo price sold was $207,222 compared to $272,102 and 24% decrease from January 2017. The median condo values were 33% lower at $189,900 compared to $284,500 in January of last year.
Unlike many other markets, the Outer Banks did not see an oversupply of condo construction during the boom years and current demand for condos has been strong in 2017. The data suggests there were an unusual number of lower priced condos sold during the month rather than a fundamental decrease in values.
Lots and Land
Over 2017, residential land unit sales increased by 14%. January 2018 continued this trend with sales up by 21% (35 units) compared to last year. The volume sold increased by 72% with the average sale price up by 43% to $144,135. In January 2018, the median land sale price increased by 29% to $110,000. Residential lots average price was reported in December 2017 at $111,967 with the median at $75,000.
Outer Banks properties “days on market” are at historical lows for the area and homes are selling much faster; especially new inventory.
New Construction building permits finished 2017 below 2016 levels with 281 units compared to 292 last year. Low inventory, fewer new homes being built and increasing interest rates will put upward pressure on prices.
Outer Banks Town Statistics
For January 2018, the median sale prices for the towns in the Outer Banks and the percent change compared to year end 2017 appear below:
Southern Shores experienced the largest percentage gain of 31% followed closely by Duck at 23%.
The Outer Banks real estate market had an excellent year in 2017. From client interest over the past few weeks, 2018 is on track for another solid sales year. Median values are beginning the year lower compared to the end of last year.
If you have been thinking about an Outer Banks vacation home purchase, second home purchase or permanent home, now is the time to act. Purchasing power will decrease once the anticipated mortgage rates increase. Smart buyers and investors will lock in rates now before the increase.
The Outer Banks rental market continues to be strong to provide income from the investment and enjoyment for the family for years to come. Buy now to position the home for the 2018 rental season.
Buy with Eillu and save more with our buyers rewards plan. The Outer Banks continues to be named a top beach destination every year. Beach nourishment has recently been completed for a large portion of Dare County beaches and will ensure strong future appreciation for real estate.
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!
Schedule an appointment today to find your vacation rental property, second home or investment property or to receive your custom market analysis if you are considering selling your home.