As we move to the end of 2023 the Outer Banks real estate market is starting to feel the effects of the high interest rates. At the beginning of the year saw the market continue its historic run of appreciation and number of homes sold in January from contracts left over from 2022. The rapid rise in interest rates have affected home prices as the year has gone on with prices down 3.5% and the number of sales down by approx. 40% for the first 10 months of 2023. Prices while down have been holding steady over the last 3 months. Inventory is still very low, down 24% from 2022, and we are now seeing houses stay in the market longer and more frequent price drops. 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 for the rest of 2023 and into 2024 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 down and will they drop below 6% in 2024?? Even with rising interest rates buyer demand has not completely disappeared. At this point I don’t see a huge price correction coming like 2008 when prices dropped 40%. Inventory could take another 12-18 months to recover. 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!!
2nd home Conventional Mortgage rates are holding steady around the 7.5% to 8% range. 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.
Disclaimer: This representation is based in whole or in part on data supplied by, and to the Subscribers of the Outer Banks Association of REALTORS® Multiple Listing Service. Information contained herein is deemed reliable but not guaranteed. Data maintained by the OBAR MLS is for its own use and may not reflect all real estate activity in the market. Data provided from 2003 to 2023