April 2022 Real Estate Market on the Outer Banks, NC
Riding the OBX Real Estate Wave
Don’t be fooled by rumors of a cooling real estate marketplace here in the Outer Banks. The number of units sold may be down for April 2022, but that doesn’t tell the whole story. A closer look at the total volume sold – up by 4 percent for the month – means the OBX housing market is still hot.
The April 2022 Outer Banks Association of Realtors®️’ MLS Statistical Report hints that not much has changed with the rest of the OBX real estate saga for last month. It’s still very much a seller’s market, with the average median sale price up 23 percent over the same period last year. Buyers are still scrambling to snatch up reduced inventory, which has decreased by 24 percent compared with April 2021.
OBX by the Numbers
OBAR’s April 2022 report offers some other valuable information for buyers interested in OBX real estate as we move toward the summer months.
- Southern Shores posted an 8 percent increase in year-to-date sales, the only OBX town that didn’t experience a loss. Southern Shores also enjoyed a 19 percent boost in the median sales price to $780,000.
- Roanoke Island was the second-best performer for the month, with a 3 percent increase in year-to-date sales. The median sales price for properties sold here improved 10 percent to $469,000.
- Corolla was the worst-performing OBX town for April 2022, with a 46 percent decrease in year-to-date sales. Inventory also was scarce in Corolla, which accounts for the negative sales figures. The good news is the median sales price increased 24 percent to $897,250.
- Year-to-date building permits also were down to 92 from 164, indicating a lack of availability of lots and land for development. The median price for lots and land increased 11 percent to $121,963.
- The average number of days on the market is down to 38 from 70 across all OBX towns, reflecting how quickly any new residential properties are scooped up by eager buyers tired of competing against 20 to 30 other bidders.
Fed Hike Affects Record-Low Mortgage Rates
Buyers already struggling to find available property have an additional worry. Gone are the record-low interest rates of 2020 and 2021, replaced by a Federal Reserve rate hike to combat inflation. Consumers are already seeing those costs passed along to them in the form of higher interest rates for mortgages.
Mortgage rates rose from under 3 percent to 5.59 percent for a 30-year fixed loan and 4.81 percent for a 15-year fixed lending agreement. Buyers already struggling to find available properties may now find themselves squeezed out of the marketplace. Others may find the reduced competition the saving grace they’ve needed to reduce the pool of offers, increasing their chances of becoming homeowners.
It remains to be seen if the Fed plans additional hikes this year. Some experts predict the U.S. central bank may hike rates as much as 3 percent before we ring in 2023. If history is any indication, the increased rates may cool demand for real estate in the OBX by the fall.