The Outer Banks (OBX) of North Carolina continues to be a hot destination, and the real estate market reflects this. With stunning beaches, charming communities, and a relaxed coastal lifestyle, the OBX attracts homebuyers, investors, and vacation property seekers alike. Are you considering Outer Banks real estate in 2024? This blog explores current market trends and offers a forecast for the coming year.
Market Snapshot: May 2024
Inventory Gains: Good News for the Market
Residential inventory has seen a significant increase, rising by 67% since May 2023 and 26% since January 2024. As of May 2024, there were 639 single-family properties publicly listed on the market, a stark increase from the 382 houses available in May 2023. Lot and land inventory has also grown, up 15% since May 2023 and 20% since January 2024. Overall, the total inventory has surpassed 1,000 properties, marking an increase of 41% since May 2023 and 23% since January 2024.
Residential Sales: A Temporary Lull
At the same time, May 2024 finds residential sales in a modest seasonal decline. Single-family detached home sales are down 9% since May 2023 and down 2% since January 2024. While condo sales are up 8% since May 2023, they are down 3% since January 2024. This shift in the market could be attributed to changing buyer preferences and economic factors. Despite the decline, there remains a steady interest in the diverse housing options available.
Local Market Data
Per the Outer Banks Association of Realtors:
Corolla
- Median sales price: $849,000
- Sales volume: 117
- Average days on the market: 57
Duck
- Median sales price: $912,000
- Sales volume: 46
- Average days on the market: 62
Southern Shores
- Median sales price: $815,000
- Sales volume: 27
- Average days on the market: 26
Kitty Hawk
- Median sales price: $585,000
- Sales volume: 37
- Average days on the market: 38
Collington
- Median sales price: $465,000
- Sales volume: 27
- Average days on the market: 48
Kill Devil Hills
- Median sales price: $557,450
- Sales volume: 126
- Average days on the market: 55
Nags Head
- Median sales price: $834,950
- Sales volume: 52
- Average days on the market: 52
All Hatteras
- Median sales price: $524,500
- Sales volume: 114
- Average days on the market: 80
Roanoke Island
- Median sales price: $575,000
- Sales volume: 41
- Average days on the market: 40
Currituck Mainland
- Median sales price: $379,000
- Sales volume: 64
- Average days on the market: 53
Ocracoke Island
- Median sales price: $522,500
- Sales volume: 6
- Average days on the market: 67
Significant Trends for Outer Banks Real Estate in 2024
Continued Demand: A Seller's Market
Despite the increase in inventory, Outer Banks real estate continues to experience a seller's market in 2024. Demand for OBX properties remains high, with buyer interest exceeding available inventory. This translates to competitive bidding situations and potentially rising sale prices. If you're a seller, this is a favorable market to list your property.
Increased Demand for Vacation Rentals
Vacation rentals continue to be a significant driver of the Outer Banks real estate market. With tourism on the rise, many investors are purchasing properties to rent out during peak vacation seasons. In 2024, this trend is expected to strengthen, providing a steady income stream for property owners and bolstering the local economy.
Luxury Market Expansion
The Outer Banks has always been known for its luxury real estate offerings. In 2024, the luxury market is expected to expand further, with more high-end properties coming onto the market. These homes often feature stunning ocean views, private beach access, and top-of-the-line amenities. The demand for luxury properties remains strong, attracting affluent buyers nationwide.
Insights and Strategies for Buyers
Strategic Planning
While the seller's market presents challenges for buyers, strategic planning can help you navigate the Outer Banks real estate landscape. Work with a qualified real estate agent experienced in the OBX market. Pre-approval for a mortgage demonstrates your financial readiness and strengthens your offer. Be prepared to act quickly on promising properties.
Options Beyond Single-Family Homes
The Outer Banks real estate market offers a variety of property types to suit different needs and budgets. While single-family homes remain popular, consider exploring townhomes, condos, and vacant lots. These options can provide a more affordable entry point into the OBX market, especially for first-time homebuyers or those seeking a second home.
Rise of Cash Buyers
The increasing presence of cash buyers in the Outer Banks real estate market is a trend to consider. Cash buyers can offer more competitive terms and close deals faster. If you're financing your purchase, work closely with your lender to ensure a smooth and timely pre-approval process.
Location Matters
The Outer Banks encompass a range of communities, each with unique character and price points. Do your research to understand the specific market trends in your desired location. Some areas may experience higher price growth than others, depending on proximity to the beach, amenities, and overall demand.
Long-Term Value
While short-term market fluctuations exist, Outer Banks real estate presents a strong long-term investment opportunity. The area's natural beauty, growing popularity, and limited developable land contribute to a potential for continued property value appreciation. Consider Outer Banks real estate not just as a place to live but also as a potential investment for the future.
Rising Interest Rates
Rising interest rates are a nationwide trend impacting mortgage affordability. Factor in potential interest rate increases when calculating your Outer Banks real estate budget. Work with your lender to explore different loan options and determine a monthly mortgage payment that aligns with your financial goals.
A Forecast for 2024: Continued Growth with Potential for Moderation
Overall, the Outer Banks real estate market forecast for 2024 is positive. The market is expected to thrive with steady growth, increased demand, and various development projects in the pipeline. Buyers can look forward to various property options, while sellers and investors can anticipate favorable returns. Inventory levels could gradually rise as new construction projects are completed. Overall, the OBX market is forecast for continued growth, making it an exciting time to invest in this coastal paradise.
About Brad Beacham
For over two decades, Brad Beacham has been a top REALTOR® from Corolla to Hatteras, driven by his passions for faith, family, home ownership, and the Outer Banks lifestyle. A true Outer Banks native, Brad's comprehensive knowledge and experience in residential and commercial real estate make him the ideal partner for your real estate needs. Whether you're looking for an investment property, a second home, new construction, or a permanent residence, Brad’s expertise ensures you achieve your goals.
Contact Brad Beacham today to start your real estate journey.
Contact Brad Beacham today to start your real estate journey.
