September 2017 Outer Banks Real Estate Market Outlook and Current Statistics

Outer Banks Real Estate Market Outlook Sept 2017

The Outer Banks Association of Realtors released the September 2017 MLS Statistical Report – you can get the full report here

Real estate sales for September 2017 in the Outer Banks increased slightly from August with 156 units to 158 units.  This is almost the same as September 2016 sales of 159 units. Under contract units increased by 6% to 442 from August reported 419 units under contract.  The average home price increased by 4% compared to 2016.  The median single family home price has increase by 2% in 2017 while condos have increased by 5% in 2017.  Some highlights from this month’s report follows. 

Overall Market

Residential inventory decreased by 10% in September following last month’s 8% decrease both compared to last year.  The inventory trend has continued downward for the past few months.  Active residential inventory is 1484 units.  The quantity sold increased by 11% following last month’s 11% increase; with volume sold up by 16% following the same increase last month.

Lots and land quantity sold increased by 6% after last month’s increase of 8%.  The average sale price for lots fell by 191% and while the median price increased by 4%. Land inventory is down by 13% compared to last year.

Commercial unit sales are down by 24% following last month’s decrease of 20%. Only 16 commercial units were sold compared to 21 last year.  The average and median sale prices have little relevance with such a small sample and appear skewed from a large sale last year.  Commercial inventory is down 22% compared to last year with only 57 units active on the market compared to 73 units last year.

Distressed Property

Distressed sales increased in September and were 9% of all residential sales compared to 2% reported last month. There were 22 residential short sale units sold, compared to 24 short sales this time last year; an 8% change from one year ago.  The average sale price decreased by 12%.  The median sale price increased by 6%. 

Sales for bank owned properties increased by 11% from 57 units to 63 units compared to last year. The average sale price for Bank Owned property fell by 8% compared to last year; while the median decreased by 1%. 

Overall, the quantity of distressed property sold increased by 5% compared to the same period in 2016.  The average price decreased by 11% and the median increased by 3%.  Total volume sold is down by 8% compared to last year.

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.  

Residential

Single family unit sales increased by 13% slightly higher than the 12% reported last month, with 1275 units compared to last year 1130 units.  The volume sold increased 17% with the average sale price increase by 4% and the median sale price increased by 2%. 

Condos unit sales increased by 12% following last month’s 16% increase compared to last year.  September condo unit sales were 151 compared to 135 a year ago.  The volume sold increase by 10% following last month’s 14% increase.  Median sale prices for condos increased by 5% compared to last year.  Average sale prices fell by 1%, compared to 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. 

Residential land unit sales increased by 3% in September.  This follows the 5% YOY increase reported in August and a 19% increase reported in July. The average sale price fell by 11% while the median price was unchanged compared to last year.

Overall Days on the Market for the all residential properties is down by 39% in September following the reported 23% decrease in August.  Days on the market is 124 versus 203.  Upon closer inspection, for the 800 units sold since Jan. 2017 the average days on the market is a startling 46 days.  Outer Banks properties are selling much faster; especially new inventory.

New Construction building permits are down by 16% with 184 units compared to 220 last years.  Building permit value decreased by 21%.

Outer Banks Town Statistics

The September 2017 median sale prices for the towns in the Outer Banks and the percent change compared to 2016 appear below:

Sept 2017 OBX market report

Sept 2017 OBX market report data table

Corolla experienced the largest percentage gain of 13% compared to 2016. The next highest YTD increase was Hatteras Island at 8%; these towns are unchanged from June, July and August. 

The Outer Banks real estate market is on track for a solid sales year.  OBXMLS reports 442 under contract compared to 419 units reported last month. October is a great time to visit the Outer Banks and view real estate as the crowds have reduced and the weather is warm during the day but with low humidity and cool at night.  Experience the colors of fall on the OBX; the marsh grass gets a pewter color, the sea oats rustle in the breeze and the deciduous trees change into the reds and golds!

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. 

Buy with Eillu and save more with our buyers rewards 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.

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. 

Schedule an appointment today to find your vacation rental property, second home or investment property. 

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