Market Commentary: 2022 Year End Market Update

The Outer Banks 2022 real estate market was a year of transition. The beginning of the year saw the market continue its historic run of appreciation and number of homes sold. From January to July the market hit an all-time high of $850,000 average sold price. As the rapid rise in interest rates started to take effect, the last half of the year saw the market cool off dramatically. While the overall average sold price was up 14% over 2022, prices from August to December dropped by 9%. The overall number of houses sold dropped 29% from 2022 but still ranks as the 3rd most houses ever sold. The higher rates have dramatically slowed the pace of sales which is starting to help inventory recover.  I feel like this trend will continue as we move into next year.  Prices will start to stabilize as more houses come on the market creating competition.  All of this is a good sign we are moving back to normal market conditions. The big questions for 2023 are 1) how far will prices drop, 2) how long will it take for inventory to get back to normal levels, 3) when will interest rates come will drop below 6%?? Even with rising interest rates buyer demand has not completely disappeared especially with those purchasing with cash.  At this point I don't see a huge price correction coming like 2008 when prices dropped 40%. Inventory will take another 6-9 months to recover and home values will only decrease slightly. Long term the market outlook is still very positive.  Each year so many first-time visitors discover the Outer Banks, creating a new set of homebuyers, that will keep the market moving for years to come.   

If you are a seller, it's still a great time to sell!!  If you have a house to sell or know anyone that wants to sell now is the time.  You may be surprised at what you can get for your property, and it does not cost you anything to list. Find out what I can sell your property for!!

Conventional Mortgage rates have come off their highs of 7.5% in November and are now down in the mid 6% range. Rates are forecasted to remain steady if not trend down in 2023.  There are more lending options now than in the past few years with loan programs with 10% to 20% down and ARM options are back in favor with lenders.  Whether you are looking for a 2nd home, investment, primary, or retirement property now is a great time to own on the Outer Banks.

Over the last 19yrs I rank in the top 7% of all Realtors on the Outer Banks in total sales volume and number of houses sold. Contact me today to get the process started to find your Outer Banks property.

Matt Huband-Broker/Owner

252-480-9283
matt@obxrealtygroup.com