Real Estate Market on the OBX for April 2020
OBX Real Estate Market Responds to COVID-19: April 2020 Outlook
Despite the COVID-19 pandemic, Madonna has been continuing to show and list homes for sale on the Outer Banks while maintaining social/physical distance and taking safety precautions. She has sold and closed properties despite the crisis and risks. Nothing can stop her passion for Real Estate. She always finds a way around obstacles.
When the news of the COVID-19 pandemic first hit in February, some realtors on the Outer Banks began making predictions on how the real estate market would respond. The year 2020 was off to a great start, with posted increases across the board for month-to-month sales and properties under contract. Brisk sales continued into the first half of March, with monthly sales increasing by 7 percent from the previous month. Early indicators placed the average sale price at a 12-year high. Unfortunately, April has not fared as well. As expected, the total month-to-month sales for April 2020 are down 23 percent, according to the April 2020 MLS Statistical Report courtesy of the Outer Banks Association of Realtors.
Outer Banks Real Estate by the Numbers
Total sales are not the only real estate statistic taking a hit in April. With Dare County residents under strict orders to stay at home, and travel restricted for non-county residents, it was challenging to show and sell properties from mid-March through the end of April.
The April 2020 MLS Statistical Report provides comparisons of key data over two years. Findings include:
- Properties under contract declined by 19 percent from the same period in 2019 due to the lack of available showings.
- Lots and land sales suffered a 35-percent decrease between April 2019 and April 2020. However, the median sale price for lots and land showed a 125-percent increase from $50,000 to $112,500 from April 2019 to April 2020. The increase in price is attributed to the -9-percent change in lots and land inventory.
- Distressed inventory is 10 percent greater for April 2020 than it was for the same period last year, with 23 properties.
- Distressed sales in the Outer Banks decreased by -33 percent between April 2020 and the same period in 2019. A total of four distressed sales occurred in April 2020.
OBX Oceanfront Homes for Sale
Overall, April 2020 saw a marked decrease in the number of oceanfront homes sold in the Outer Banks, due to the fact the market was on hold because of COVID-19.
The area least affected by the current pandemic is Currituck Mainland, which enjoyed a 47 percent increase in residential home sales between January 1 and April 30, as compared to the same period in 2019. A total of 72 units changed hands during the first four months of 2020.
In comparison, Ocracoke Island continued to show the biggest reduction in sales for January 1 through April 30, selling only half as many residential properties as it did for the same period in 2019.
Looking Forward
Dare County entered Phase I of the state’s reopening plan in mid-May, which is expected to improve the outlook moving forward. Businesses previously deemed nonessential are allowed to resume normal operations, provided social distancing and stringent sanitation procedures are followed.
This is normally the busiest time of the year for real estate sales in OBX. If mortgage rates remain at their current 3 percent rates, it could be the boost real estate sales in OBX need to make a strong comeback for the second half of 2020.
If you have any questions or want to see a property, give Madonna a call at 252-202-6702
