June 2021 Real Estate Market on the OBX
What Goes Up Must Come Down – Or Does It?
Outer Banks real estate professionals are flummoxed. For more than a year now – and through a global pandemic, no less – the real estate market has flourished here in the Outer Banks. Tight inventory and high demand have created a perfect storm for sellers. Prospective buyers engage in bidding wars that leave sellers walking away with significantly more than their asking price in hand. The OBX market is hotter than the sand on the pristine beaches here. It is leaving many to question when the big cool down is coming.
Lack of inventory, not bubble, causing high prices
Overall sales in the Outer Banks are up by 97 percent, according to the June 2021 MLS Statistical Report. Residential unit sales enjoyed a 68 percent increase over the same period in 2020, with 1,875 residential units changing hands. Lot and land sales spiked even higher, with an upturn of 170 percent over June 2020.Sales figures are not the only thing moving upward. Sellers continue to enjoy higher home values, with properties selling 54 percent over the median sales price from just one year ago. On average, homes on the Outer Banks are selling for $529,500. Lots and land sales median sales prices are holding steady compared with June 2020, but total sales are up 270 percent.
Some prospective buyers are hoping to wait out the “bubble,” expecting better prices and selection in 6 to 12 months. If you believe the predictions from the National Association of Realtors and top financial institutions, it dashes any hopes for lower housing prices in the future. One poll from Reuters suggests the entire U.S. housing market is experiencing the fastest annual house price inflation rate since 2013. The same data also indicates there is little risk for a housing bubble. The outlook for mortgage rates is a bit murkier. Whether they rise and stay up depends on the economy and if it enters a prolonged period of inflation.
OBX by the numbers
For now, real estate transactions in the Outer Banks continue at the same record-breaking pace they have enjoyed for more than a year. Overall sales are up 97 percent compared with last year. Under-contract listings have fallen off slightly and are down 14 percent from June 2020. This is due more to the low inventory than anything else.
Ocracoke Island soared ahead in the number of sales again this month. It first peaked as the front-runner in April before dropping off again due to a lack of available inventory. Within the last month, Ocracoke experienced a 600 percent increase in sales over June 2020, with the median home price rising 13 percent to $402,500.
Other top performers include:
• Nags Head was the second-highest performer, with a 153 percent increase in sales and a 26 percent rise in median sales price.
• Colington, with a 100 percent increase in sales and a 14 percent boost in median sales price.
• Southern Shores, at 86 percent over June 2020 and a 23 percent increase in median sales price.
The OBX market continues to be rough for buyers. Whether you are looking to buy or sell, give us a call. We can help you navigate through the process to get the best deal available.
