Outer Banks Real Estate 2023 Review
Outer Banks Real Estate 2023 review for the Outer Banks real estate market. The market certainly felt the effects of high interest rates as the year went on with the number of sales down 32% from 2022. 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 the average sold price for the year only dropped 2%. Inventory is still very low, down 14%, but in the last few months of the year more houses started coming on the market and staying on the market longer. Hardly any negotiations on price were taking place with only a 3% difference in average sale price vs list price. While the buyer pool was 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.
Below are some of the stats for the areas that had the highest and lowest % change in average sale price in 2023:
Biggest gainers:
Duck Westside +32%
Frisco Soundside 26
Colington 21
Corolla Westside 21
Salvo Soundside 17
Salvo Oceanside 16
Frisco Oceanside 16
Martins Point 15
KH Oceanside 15
Biggest decline:
Waves Soundside -27%
NH Oceanside 26
Hatteras Oceanside 24
Rodanthe Oceanside 15
NH B/W Highways 14
Pirates Cove 14
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 drop to 6% or below?? Most of my lenders are telling me 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% 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.
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 OBX. To learn more about buying real estate on the Outer Banks of NC contact Matt today.
Current Listings for sale on the Outer Banks:
