October 2021 Real Estate Market on the OBX

Inventory Declines Continue to Define OBX Real Estate Market

A declining inventory continues to disappoint Outer Banks property hunters desperate to find their ideal matches. While some market analysts continue to toss about the explanation that the Outer Banks finds itself in a housing bubble, nothing could be further from the truth. OBX is not stuck in a bubble. The October 2021 MLS Statistical Report released by the Outer Banks Association of Realtors® does not support that assertion.

Like many other parts of the country, the Outer Banks suffers from a lack of inventory. A quick review of the historical MLS data from 2019 through October 2021 indicates an 11 percent decrease in available listings.

A lack of available property combined with record-low mortgage rates continues to drive the frenzy, which has created a sort of super sellers marketplace. As of November 8, the average rate for a 30-year fixed mortgage is 3.20 percent. Double-digit price increases reflect the high demand and chronically low supply.

OBX by the numbers

Residential inventory posted a 35 percent decrease in October, with lots and land inventory down 24 percent. Other year-to-date MLS statistics of note:

• Residential sales up 6 percent.
• Lots and land sales increased 72 percent, with most sales occurring in the late spring and early summer months.
• Median sales price for residential properties rose by 19 percent.
• Lots and land sale prices improved by 11 percent.

Total sale volume for residential and lots and land combined peaked at 57 percent over the previous year. Hatteras Island was the Outer Banks star for average median sales price with a 40 percent increase year-over-year. The average sales price for Hatteras Island in 2021 is $525,000 versus the $375,000 in the same area commanded in 2020.

Year-to-date statistics for OBX areas

Some Outer Banks areas have performed better than others over the last year, due to more readily available inventory. Let’s look at how each region fared.

Corolla
Year-to-date sales stand at 442, reflecting a 4 percent increase. The median sales price rose 28 percent over 2020 to $718,500. The average days on the market for properties in Corolla was 44 for 2021 versus 144 for 2020.

Duck
Year-to-date sales stand at 201, reflecting a 10 percent decrease. The median sales price increased by 12 percent to $580,000. The average days on the market for properties in Duck dropped to 85 from 141.

Southern Shores
Year-to-date sales stand at 104, a 5 percent decrease over the previous year. The median sales price rose by 24 percent to $630,000, with the average days on the market dropping from 114 to 38.

Kitty Hawk
Year-to-date sales remained unchanged from 2020, with a 28 percent increase in the median sales price to $505,000. The average number of days on the market dropped from 56 to 28.

Colington
Year-to-date sales increased 13 percent to 143, with the median sales price rising 17 percent to $350,000. The average number of days on the market dropped to 33 from 95.

Kill Devil Hills
Year-to-date sales increased by 33 percent to 380, with the median sales price also rising by 22 percent to $403,000. The average number of days on the market decreased from 70 to 27.

Nags Head
Year-to-date sales increased by 28 percent to 299, with the median sales price rising 27 percent to $610,000. The average number of days on the market dropped from 86 to 45.

All Hatteras
Year-to-date sales increased 40 percent to 492, with the median sales price reflecting a 49 percent boost to $558,000. The average number of days on the market dropped from 180 to 94.

Roanoke Island
Year-to-date sales decreased by 2 percent to 174, with the median sales price increasing 21 percent to $430,000. The average number of days on the market dropped from 94 to 54.

Currituck Mainland
Year-to-date sales increased 20 percent to 224, with the median sales price also rising 16 percent to $320,000. The average number of days on the market dropped by more than half from 89 to 32.

Ocracoke Island
Year-to-date sales increased 160 percent to 39, with the median sales price experiencing a 23 percent boost to $435,000. The average number of days on the market dropped slightly from 269 to 205.