Real Estate Marketing on the Outer Banks October 2020
Blazing Trend Continues for Outer Banks Real Estate Market
In a year in which a global pandemic has wreaked havoc on business and industry, the Outer Banks real estate market continues to be an anomaly. The two-month shutdown due to COVID-19 caused a bit of uncertainty about how the market would respond. With visitors restricted, an April and May slump was inevitable. When the Outer Banks reopened to outside guests on May 16, a fuse was lit, and the market has blazed ever since. The Outer Banks real estate market continues to break sales records in the third quarter of the year.
The Outer Banks Association of Realtors’ October 2020 MLS Statistical Report indicates record-breaking sales and yearly volume. The market experienced the highest number of monthly unit sales at 456 units. It also boasts the highest yearly volume at $1.18 billion. That reflects a 115 percent increase over 2019. With listings lasting just days once they hit the market and generating several offers, it is a seller’s market. Sellers can expect an average of 52 days from listing to closing. Buyers will need to move quickly when properties enter the market.
National vs. Local Trends
Home sales booming in the middle of a pandemic seems to be a bit of a national trend. What is happening in the Outer Banks far exceeds the growth elsewhere. The national median house price for the third quarter was $313,000, according to the National Association of Realtors. For the Outer Banks, the national median house price was $522,000 in Corolla, followed closely by the Southern Shore at $502,500.
The number of building permits sought in 2020 continues to trend upward as well, with approximately 200 permits issued. This is on par with national building permit trends for 2020, according to the National Association of Home Builders.
While lower interest rates for borrowers are playing into the surge, another factor is at play. With people spending more time at home thanks to the pandemic, they are re-evaluating where they want that home. The Outer Banks used to be a place for getting away but is becoming more popular among discerning individuals who crave the peace and tranquillity – not to mention the amazing beachfront views – afforded at OBX.
Outer Banks Real Estate by the Numbers
Sales and yearly volume are not the only surprising numbers reflected in the October 2020 MLS Statistical Report. Among the other unexpected data for 2020:
- Residential yearly sales increased by 40 percent
- Lot and land yearly sales rose by 36 percent
- Residential inventory for September 2020 was down 56 percent
- Homes under contract were up 97 percent (over September 2019)
Compared with data from October 2019, monthly sales increased by 104 percent. Yearly sales comparisons also show gains, up by 39 percent.
Residential units in Corolla continue to be a hot commodity, with sales increases of 126 percent across 2020. The median sales price is $522,000, reflecting a 7 percent rise over the same period in 2019. Other high-performing areas include:
- Duck, with a 114 percent increase in sales and a median sales price of $490,000
- Southern Shores, with a 29 percent increase in sales and a median sales price of $502,500
- Roanoke Island, with a 60 percent increase in sales and a median sales price of $349,625
Ocracoke Island continues to struggle, with sales showing a reduction of 25 percent over last year.
Future OBX Market Outlook
It does not appear as if this surge in the OBX market will come to a halt any time soon. With interest rates continuing to hover around 3 percent, and lenders loosening up requirements for borrowers, the market is expected to continue to stay the course through the end of 2020 and into early 2021.