The OBX real estate market is seeing good signs in most market segments. After a somewhat slow start to 2016, sales agreements picked up significantly in April and May. In fact, demand was so strong that the inventory dropped earlier than usual. The number of listings in the Outer Banks MLS system usually peaks in June or July. This year the peak of inventory was in April.
A few other good signs are the increases in sold price per square foot, average sales price and median sales price for OBX residences. The beginnings of a “U” shape can be seen in the sold price per square foot graph found to the left. The monthly Outer Banks Realtor report states that average and median prices were up about 9% and 10% respectively for the first five months of the year.
So when should we see the same prices as the boom years in this OBX real estate market? Please keep in mind it took many years of a bad economy to get to the bottom of this last real estate cycle here on the Outer Banks. It is likely to take a similar amount of time for values to reach their former levels. Supply and demand are key determining factors in prices increasing. A common way to measure supply and demand is the absorption rate. Absorption rates are still fairly high in some Outer Banks areas. Sales prices won’t be pressured much until absorption rates go down more.
Stronger Outer Banks sales are a welcome sign to buyers, sellers and Realtors. As this summer rolls on and inquiries continue to come in, it looks like this trend should continue for some time. If you would like to see the entire OBX real estate market report, you can see it at this link. Also you can see much more information about real estate here at ScottRealtyobx.com