February 2022 Real Estate Market on the Outer Banks, NC
Low Inventory Saga Drags On in OBX
It’s starting to feel like we’re on repeat each month with our reports on the state of the Outer Banks real estate market. Another month, another update about low inventory continuing to stress buyers desperately seeking their dream properties.
According to the February 2022 MLS Statistical Report from the Outer Banks Association of Realtors, available inventory continues to disappoint. Data indicates inventory continued to decline last month, posting an average decrease of 34 percent. Breaking it down by category, the numbers reveal:
- 36 percent decline in new residential listings.
- 34 percent decline in new lots and land listings.
- 20 percent decline in new commercial listings.
Low inventory numbers in the Outer Banks mirror those across the country, as many states struggle to bring new listings to buyers eager to take whatever they can get.
Tight supply, rising prices
Supply and demand drive most pricing models for consumer goods. The housing market in the Outer Banks is no exception. As new listings become scarcer, the average residential median sale price continues to rise.
According to the MLS Statistical Report, only 78 residential listings in February were priced below $400,000. Of those, only 35 are located on the Outer Banks between Corolla and Hatteras. The average median sales price now hovers around $570,000 — a 27 percent increase over February 2021.
The average price for lots and land is also higher, posting a 15 percent increase over last February, at $110,242. While prices may be up, sales are down because of the ongoing issue with tight inventory. Residential sales took a 20 percent dip, with lots and land sales decreasing 8 percent.
Commercial properties bucked the trend, posting a 218 percent increase over February 2021. According to the MLS data, the surge in commercial sales can be attributed to two large transactions during the month.
OBX by the numbers
Despite the low inventory, some areas of the Outer Banks continued to thrive and perform well under pressure in February. The Southern Shores made a strong showing, posting a 19 percent increase in year-to-date sales. The median sales prices for residential properties for sale on the Southern Shores rose 25 percent to $816,500.
The only other OBX area to post an increase in year-to-date sales was Duck, with 14 percent growth. The average median sales price in Duck rose by 35 percent to $879,000.
The poorest-performing OBX area was Colington, with a 39 percent dip in year-to-date sales at only 19 total. While sales may be lagging, the average median sales price hasn’t suffered. Colington residential properties saw a 25 percent boost in worth to $449,000.
Future forecast for OBX
So much about the housing market in the OBX and across the nation has been unpredictable for the last two years. Bne thing most local real estate experts agree on is that the Spring 2022 real estate marketplace in the OBX is going to be hot, hot, hot.
Prospective buyers can expect bidding wars over new listings to continue, with available inventory continuing to remain low.