2021 OUTER BANKS MARKET REPORT

In 2021 Outer Banks remained a STRONG SELLERS MARKET. Properties were literally flying off the shelves, particularly single family homes and condos, which were going under contract in less than 6 weeks (and some in just a few days, or even hours).

Remember, we were talking about the inventory being very low about a year ago (1159 active listings as of January 5th, 2021)? Obviously now, that number was not low at all. As of January 7th, 2022, OBAR MLS had only 779 active listings for the buyers to consider! In fact, out of 779 active listings, Dare County and Currituck County together were accounted for only 614 active listings. With that being said, the supply is actually EXTREMELY low right now! Considering 2021 market absorption rates, we currently have less than two-month supply of residential single-family homes, one-month supply of condos/townhomes, and less than four-month supply of vacant land available.

Anyway, let’s get to the last year’s detailed review now.

First of all, real estate sales records got broken once again in 2021. Now we are talking about legendary $2.1 BILLION in sales volume with over $1.85 BILLION in single-family homes sales! Yes, last year single-family homes sales added 41% in volume and 9% in units, and ended up with 30% average sales price and 22% medium sales price increases.

Condo/townhouse average sales price and medium sales price both soared last year: +34% and +39% respectively (making it up for 2020, when they both stayed almost flat). As a result, even with a fewer deals closed (-9%), sales volume of condos/townhomes went up remarkable 22% last year!

Residential vacant land market got almost two times busier in 2021 than in 2020 (+46% more units sold) with sales up 64% in volume! Both average sales price and median sales price of residential land increased last year: +12% and +10% respectively.

Average sales price has increased in all areas in 2021: Carova 4×4 area (+22%), Corolla (+34%), Duck (+47%), Southern Shores (+26%), Kitty Hawk (+41%), Kill Devil Hills (+31%), Nags Head (+48%), Manteo (+14%), Rodanthe/Waves/Salvo (+44%), Avon (+35%), Buxton/Frisco (+26%), and last but not least, Hatteras (+42%).

Out of all Outer Banks areas there were two that experienced a significant buyers’ activity growth in 2021: Kill Devil Hills  (30% more homes sold than a year ago) and Hatteras Island (33% more deals closed last year).

Here is the breakdown of single-family homes price ranges in particular towns and areas based on 2021 sales.

2021 Single-Family Detached Homes Sales (Currituck and Dare)

As it was already mentioned, there were fewer condos and townhouses sold in 2021 than a year before. Nevertheless, every single condo or townhouse went under contract two times faster and was sold for at least 30% more than it would be sold in 2020.

Here is what you should be ready to spend on a condo/townhouse, if you were to buy one anytime soon:

2021 Condo and Townhouse Sales

Last but not least, residential vacant land sales were on fire as well!

Obviously, many buyers out there who were not ready to pay above the asking price for already inflated properties, ended up investing in a vacant land instead. As a result, the number of vacant land deals almost doubled last year (+46%), yet both average and median sales prices stayed within 10%-12% increase range.

Average sales price of vacant land increased significantly in just a few areas: Southern Shores (+49%), Kill Devil Hills/Colington (+20/+35%), Nags Head (+24%), and Carova 4×4 area (+45%).

Here is what you can expect to pay for a piece of land on Outer Banks nowadays:

2021 Residential Vacant Land Sales

With the inventory remaining extremely low, the supply/demand problem will most likely stay until the interest rates begin to climb at some point this year. Meanwhile, real estate prices will continue their way up, but probably at a slower pace.

In 2022 we should probably see more investors (particularly cash buyers) acquiring a vacant land instead of a home or a condo on Outer Banks.

To all sellers out there: this year might be the last chance to sell your property at the top market price! Just think about that for a moment.

 

Russ Haranovich

Broker-in-Charge, Realtor®

Homeowner Realty OBX

Russ@HROBX.com

252-619-1919

 

 

 

 

 

 

 

 

 

 

 

 

 

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