A comparison of many OBX real estate indicators over the last ten years shows that our market is much more healthy than it has been in years. The Outer Banks Association of Realtor’s MLS August report says there have been more sales agreements this year than any year since the boom years of last decade. My number is slightly lower than last year but that is because some contracts are voided by the time I count sales agreements (see how I count at the end of the report on in the market section of my web site).
Included in this report is a graph showing the number of listings in the local MLS system over the last ten years. In the summer of 2005 there were around 4,500 listings in our MLS system. As of this week there were less than 2,700! You can also see how each year the inventory fluctuates based on the season.
Here is another interesting indicator. It is the absorption rate for Kitty Hawk over the last eight years. I picked this town because it is close to home and is fairly representative of the Outer Banks market. This graph shows how long it would take for all the residences in Kitty Hawk to sell if they were selling at the current rate and no more were listed. Absorption rate helps us figure out when demand will put pressure on prices. Absorption rates rarely get lower than five months in this resort market. It’s my opinion that demand begins to pressure prices in this market when there is somewhere between six and eight months worth of inventory. You can see the recent absorption rates for other market segments later in this report.
The market report also shows that the sold price per square foot continues to show slow growth in values. Distressed sales inventory has leveled off at just three percent of the total Outer Banks inventory. Click here for the entire OBX real estate report. You can also go see previous reports at our Scott Team Realty Market Info page.