OBX Real Estate Stats-November 2023
As we come to the last month of 2023 the Outer Banks real estate market has felt the effects of high interest rates. The beginning of the year saw the market continue its historic run of appreciation and number of homes sold in January and February with contracts left over from 2022. The rapid rise in interest started to take its toll on the market around summertime as buyers started to hold off buying. Even with high interest rates prices as the year has gone on has only dropped 3%. The number of sales is trending down by approx. 30% for 2023 compared to last year. Inventory is still very low, but more houses are coming on the market and staying on the market longer. One thing we are starting to see is more price reductions which was unheard off over the last 3 years. While the buyer pool is drastically lower there are still those looking to invest in the Outer Banks especially cash buyers. This year we have seen a record number of all cash transactions, close to 40% of all sales.
The big questions going into 2024 are 1) Will prices drop, maintain or rise, 2) How long will it take for inventory to get back to normal levels, 3) When will interest rates come down and will they drop to 6%?? Many lenders are hinting that we are done with rising interest rates and by summer 2024 we could see rates close to 6%. Mortgage rates are holding steady around the 7.5% with more lending options now than in the past few years. Lenders are offering loan programs with 10% to 20% down and ARM options are offering some of the best rates. At this point I don’t see a huge price correction coming like 2008 when prices dropped 40%. With so many buyers on the sidelines if rates do drop, I see buyers coming back in force which should keep prices level or rise next year. Inventory could take another 12-18 months to recover to normal levels if the buyers do show back up. 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. Whether you are looking for a 2nd home, investment, primary, or retirement property there is a property out there for you.
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 with a Free Home Valuation. If you are a buyer that wants to stay up to date on the market sign up for free Market Report for the town you are interested in. The Market Report is emailed to you each week with new listings, sold listings, and price changes. You can also sign up for a Listing Manager account where you can set your own search parameters for the properties you are interested in. Check out the OBX Real Estate Stats page to see how the market has changed over the years.
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Since 2003 Matt Huband-Broker/Owner of OBX Realty Group has ranked in the top 7% of all Realtors on the Outer Banks in totals sales and sales volume. With his years of experience and extensive area knowledge Matt can help you find the right property on the Outer Banks of NC. To learn more about buying real estate on the Outer Banks of NC contact Matt today.
Current Listings on the Outer Banks of NC: