August 2021 Real Estate Market on the OBX
Summertime Cool Down Misses the Outer Banks
To say the real estate market is blazing is an understatement. Normally by this time of year, the frantic summertime pace for real estate transactions begins to slow. As with so many other things in the last year, normal is not happening. All signs point to demand for real estate in the Outer Banks continuing well into August. Multiple offers from prospective buyers have driven up the market price, becoming the new normal for OBX real estate. That is not necessarily a bad thing.
As you may recall from the July report, sales continue at a historically high rate, according to data from the Outer Banks Association of Realtors. OBAR has tracked real estate transactions in the Outer Banks since 2005. A look back at trends since then reveals that before now, there was only one month – May of 2005 – where total sales were more than 400. Since July 2020, OBAR has recorded nine months with sales exceeding 400. Average sales for the last 13 months are 406 units.
The state of OBX inventory
Sales are not the only thing at historic levels in the Outer Banks. Available inventory continues its decline over previous years. All inventory – residential units, lots, and land – remain 22 percent below August 2020 levels.
Residential inventory for August 2020 stood at 723 units. For the same period in 2021, only 501 units were available, reflecting a decrease of 31 percent. Lot and land inventory in 2020 was 664 units compared with the 568 units available in August 2021.
Selling like hot cakes
While the inventory numbers may be low, sales of available residential units are up 37 percent over August 2020. Lot and land sales posted a 114 percent increase over the same period in 2020. Active listings were cut nearly in half over last year’s figures. The tight inventory is prompting prospective buyers to engage in aggressive tactics to secure available properties. Bidding well over the asking price is a common strategy.
The low inventory numbers continue to drive up prices, with the median residential property costing about 34 percent more compared to last year at this time.
Top-performing OBX markets
In July, Currituck Mainland was the top performer for the most residential units sold. For August, Ocracoke Island takes the crown, with a 256 percent increase in sales. The median sales price for homes sold on Ocracoke Island got a 19 percent boost over last year, at $423,750.
The second place for sales for the month of August is all Hatteras areas, posting a 79 percent increase. A total of 425 units have been sold in Hatteras year-to-date. The median sales price also boosted there by 39 percent to $520,000.
Other top performers include:
- Nags Head – 53 percent increase with a median sales price of $611,500
- Corolla – 47 percent increase with a median sales price of $719,500
- Kill Devil Hills – 40 percent increase with a median sales price of $390,000
Roanoke Island saw the lowest increase in sales for August with just a 4 percent increase over 2020 figures. The inventory on the island is low, contributing to the lower sales figures.
