Outer Banks Real Estate Market Report - May 2020

Soundfronts.com – OBX Market Report (May 2020) Rick Kinne – Village Realty OBX 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. Based on information from the Outer Banks Association of REALTORS® for the period (6/1/2019) through (5/31/2020).

Soundfronts.com OBX Market Report – May 2020 • Hi. Rick Kinne here with Village Realty in Nags Head, North Carolina.

This Outer Banks real estate market report is a monthly feature for my soundfronts OBX page and soundfronts.com website, intended to keep you informed of the local real estate market.

• Before we get started, I need to preface the report with some stipulations and provide some context. So: OBAR’s disclosure is printed on all of OBAR’s statistical reports and reads as follows: “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.”

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Clearly, sales take place through For Sale By Owner (FSBO’s), Real Estate Agents who are not Realtors and therefore don’t have MLS access, etc. However, I don’t believe that amount is significant.

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.

Based on information from the Outer Banks Association of REALTORS® for the period (6/1/2019) through (5/31/2020).

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The Outer Banks market covered by OBAR is a bit unique. It’s a mixed market but it’s primarily a vacation/rental home market.

Coverage stretches from lower Currituck County and the Dare County mainland, all along the beaches from Carova through Ocracoke.

Now for the May 2020 numbers…

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. Based on information from the Outer Banks Association of REALTORS® for the period (6/1/2019) through (5/31/2020).

Sales – All Classes

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. Based on information from the Outer Banks Association of REALTORS® for the period (6/1/2019) through (5/31/2020).

Under Contract – All Classes

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. Based on information from the Outer Banks Association of REALTORS® for the period (6/1/2019) through (5/31/2020).

Showings…

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. Based on information from the Outer Banks Association of REALTORS® for the period (6/1/2019) through (5/31/2020).

Residential Sales…

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. Based on information from the Outer Banks Association of REALTORS® for the period (6/1/2019) through (5/31/2020).

Residential Inventory…

Absorption Rate: Total Absorption rate in our MLS was 10 months for homes and 23 months for land as of June 1!

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. Based on information from the Outer Banks Association of REALTORS® for the period (6/1/2019) through (5/31/2020).

Lots and Land Sales…

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. Based on information from the Outer Banks Association of REALTORS® for the period (6/1/2019) through (5/31/2020).

Lots and Land Inventory…

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. Based on information from the Outer Banks Association of REALTORS® for the period (6/1/2019) through (5/31/2020).

Distressed Sales…

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. Based on information from the Outer Banks Association of REALTORS® for the period (6/1/2019) through (5/31/2020).

Distressed Property Inventory…

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. Based on information from the Outer Banks Association of REALTORS® for the period (6/1/2019) through (5/31/2020).

Dare County Foreclosures…

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. Based on information from the Outer Banks Association of REALTORS® for the period (6/1/2019) through (5/31/2020).

New Construction…

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. Based on information from the Outer Banks Association of REALTORS® for the period (6/1/2019) through (5/31/2020).

Building Permits…

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. Based on information from the Outer Banks Association of REALTORS® for the period (6/1/2019) through (5/31/2020).

Sales by Town…

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. Based on information from the Outer Banks Association of REALTORS® for the period (6/1/2019) through (5/31/2020).

Sales by Town…

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. Based on information from the Outer Banks Association of REALTORS® for the period (6/1/2019) through (5/31/2020).

Sales by Town…

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. Based on information from the Outer Banks Association of REALTORS® for the period (6/1/2019) through (5/31/2020).

Sales by Town…

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. Based on information from the Outer Banks Association of REALTORS® for the period (6/1/2019) through (5/31/2020).

Sales by Town…

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. Based on information from the Outer Banks Association of REALTORS® for the period (6/1/2019) through (5/31/2020).

Sales by Town…

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. Based on information from the Outer Banks Association of REALTORS® for the period (6/1/2019) through (5/31/2020).

Sales by Town…

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. Based on information from the Outer Banks Association of REALTORS® for the period (6/1/2019) through (5/31/2020).

Sales by Town…

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. Based on information from the Outer Banks Association of REALTORS® for the period (6/1/2019) through (5/31/2020).

Sales by Town…

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. Based on information from the Outer Banks Association of REALTORS® for the period (6/1/2019) through (5/31/2020).

Sales by Town…

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. Based on information from the Outer Banks Association of REALTORS® for the period (6/1/2019) through (5/31/2020).

Sales by Town…

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. Based on information from the Outer Banks Association of REALTORS® for the period (61/2019) through (5/31/2020).

Wrap-up…

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Residential Sales are down 32% over last year. This is to be expected as sales in May are primarily from the inventory going under contract in March and early April Overall, our market has shown resilience despite the COVID 19 circumstances!

Lots/Land sales are down 23% over this time last year and inventory is down 12% Under Contract listings have rebounded dramatically, with 549 units under contract! This is an all time MLS record and is a good sign for the future if the get to closing! We were at 332 units at one point in April.

Residential inventory is down by 23% over last year and overall inventory is down by 19%.

Median prices are down in some areas and up in others (see individual pages by town).

Absorption is a direct reflection of inventory for both homes and land.

Homes were at 9 months as of April 1 while Land remained at 21 months. Although this represents an overall strong Buyers Market, it is an average. Some jurisdictions are clearly into a Sellers market now.

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.

Based on information from the Outer Banks Association of REALTORS® for the period (6/1/2019) through (5/31/2020).

Wrap-up…So, what does it mean to you?

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Vacation rental activity is strong since visitors have been allowed back in as of May 16!

With home inventory declining, if you are considering a purchase, it is a really good time to consider buying land and building new.

The number of under contract listings has skyrocketed to an all-time record high!

Seller’s – Prices for homes remain strong and inventory is still low. It is a great time to sell! Nice homes that are priced correctly are going under contract quickly at a record pace. DOM remains fairly low. Some jurisdictions are representative of a Seller’s market with inventory at 6 months or less. We will continue to watch carefully!

Buyer’s – It is still a Buyer’s market overall. Interest rates remain low.

Homes that are nice and priced correctly are moving quickly. So, get preapproved and be ready to make a move! Inspectors, Appraisers, and Attorneys are running behind which may have an impact on time to close.

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.

Based on information rom the Outer Banks Association of REALTORS® for the period (6/1/2019) through (5/31/2020).

Wrap-up…So, what does it mean to you?

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Will the restrictions eventually bring the market to a stand still? NO and they have now been lifted!

How long will it take for this situation to impact home prices? Median rices are down 12% overall.

Will we eventually see a spike in foreclosures due to rental homes not having any income? Distressed property inventory is up 30% over last year but that still represents only a few units.

It is always a good time to plan and strategize if you are interested in buying or selling. Call me to get started!

Our market is coming back strong as predicted Please feel free to call, e mail or text me at any time with questions or assistance...

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.

Based on information rom the Outer Banks Association of REALTORS® for the period (6/1/2019) through (5/31/2020).

Appendix – Pandemic Watch - Market Day by Day since March 21, 2020

Market Day by Day…

Market Day by Day…

Market Day by Day…