Market Commentary:

The Outer Banks real estate market is has entered a new phase as mortgage rates have gone considerably higher and the market is starting to feel the effect. The higher rates have dramatically slowed the pace of sales and is starting to help inventory recover.  The average sale price so far in 2022 is up 17% from 2021 and while the number of sales has dropped 15% in the first 6 months of the year.  Keep in mind that last year was an all-record for sales so compared to 2019, which at the time was a record year for sales, the number of sales are still higher. At the beginning of September there were 354 listings on the market and at the end of June there are 238. The market is starting to slowly recover inventory but it will take sometime to get back to normal, typically we see approximately 750+ active listings. I feel like this trend will continue as we move deeper into the year. As the Fed Reserve continues to raise rates the market will slow down even more which is not all bad.  Prices are starting to stabilize as more houses come on the market creating competition. The multiple offer situations and houses selling over list price so common over the last 2 years have all but faded away. All of this is a good sign we are moving back to normal market conditions. The big question is how far will prices drop and how long will it take for inventory to get back to normal levels?? Even with rising interest rates buyer demand has not completely disappeared especially with those purchasing with all 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 positive.  Each year so many first-time visitors have discovered the Outer Banks creating a whole 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. As the year goes on, we will start to see more price reductions and more inventory creating more competition for sellers. 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 moved to the mid 6% range in the last few weeks and are forecasted to go higher as the year goes on. Jumbo Rates for loans over $647,200 are lower than conventional rates and are still in the high 5% range.  As rates go up buying power is decreased. Historically rates are still very low and if you are looking to buy now is the time to jump in before they get higher. There are more lending options now than in the past few years with loan programs with 10% and 20% down. Even though home prices have gone up rental income has also increased. With rental income up, tourist demand up, and low mortgage rates home affordability on the Outer Banks is the best it has been in years. 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 18yrs I rank in the top 10% 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