The Outer Banks real estate market is showing many signs of recovery. In 2015, the Outer Banks Association of Realtors statistics showed an increase in the number of sales and a decrease in the number of properties for sale. Over the last ten years, the over abundance of beach properties for sale was a key factor in lower values of local real estate. Demand is now increasing values in some OBX areas.
A market segment where demand has recently pressured prices is entry level lots. In 2014, over ten entry level lots sold on the sound side of Kill Devil Hills for less than $60,000. In 2015 only two lots sold for less than $60,000 in this area and some similar lots were going for as much as $70,000! Higher valued properties saw much less of an impact in 2015.
Another positive trend is the decline in distressed properties. Bank owned property made up less than 5% of the inventory for most of the year. Recently as 2013, distressed properties made up more than 10% of the active inventory. There are still some foreclosures and short sales occurring but they are having little impact on the Outer Banks real estate market.
Overall, the sold price per square foot is still well below what it was ten years ago and we have not seen an appreciable increase in average sales prices in many market segments. Similar demand and supply is likely to result in increases in these key appreciation indicators over the next year or so.
If you are thinking of selling and don’t have to sell then you may want to wait a year or two. It’s likely you’ll get a higher price in 2017 or 2018. Buyers looking to buy are less likely to find properties with today’s great prices after 2016. If you want to see this entire market report. You can find it at this link or go to the Market Info tab of http://scottrealtyobx.com.