Real Estate on the Outer Banks: March 2018 Roundup
April 25, 2018
Real Estate News
March 2018 has been another month of disappointing residential sales in most locations up and down the beach. However, once again, this does not tell the whole story.
For another month, Kill Devil Hills is leading the way in terms of new construction permits issued, highlighting the attractiveness of this historic slice of the Outer Banks’ countryside. Sales of undeveloped land also experienced another upturn, suggesting that the real estate market in the area is going through a process of evolution.
But first, let’s have a look at those residential stats in more detail. March saw 175 single family detached residential unit sold, a decrease of 18% on the 214 properties sold one year ago. However, despite the fall in sales volumes, the average sale price increased by 13%, going some way towards softening the blow for the market.
The number of condominiums sold also declined, falling by 9% on the numbers from last March and experiencing an average price decrease of 17%. March has not been kind to the condominium market.
This brings the total number of residential properties sold in March to 201, forty less than the 241 sold last March; a 17% decrease. Despite this slump, selling prices did rally and the average sale value rose by 7% over last year.
Commercial and Total Units
As for commercial units, there is not much of a story to tell. No commercial properties were sold in March 2018, compared to the one single commercial property which was sold in March 2017. In total, this means that 258 properties were sold on the Outer Banks in March across all classes, including residential, commercial, and undeveloped lots; a figure which is 32 units less than the total sold last March. This represents an 11% dip across all classes, although the average sale value did climb slightly by 3%.
The market may be sluggish but it is not unhealthy. Short sales in the residential sector fell dramatically year on year, plunging from seven in March of 2017 to two in March of this year; a fall of 71%. The number of properties on the Outer Banks owned by banks or other financial institutions rather than a private resident also decreased. There were six such sales in March of 2017, compared to 17 one year ago, which represents a decrease of 65%. The majority of these distressed property sales were made up of single family detached units and condominiums.
Behind the Numbers
So what is it that has harmed residential sales over the past month? One fact is that residential properties are declining in terms of affordability, thanks to an overall climb in property values across the region. This is coupled with a reduced inventory, which has made it more difficult for prospective buyers to find the property they need across the Outer Banks.
General declines in sales across the board have made this month the weakest for residential sales since November 2011. Despite this, there are still a broad variety of property deals to be made in the area for those who are willing to search them out.
The Outer Banks Real Estate Company provides prospective buyers with a wealth of resources and advisory services aimed at connecting buyers with the real estate they need. With unparalleled levels of local knowledge and vast combined experience in the market, the OBREC team is perfectly positioned to help you find what you need in this highly sought after area.
Get in touch with the team today and let us work with you to realize your property investment dreams.
All data provided by OBAR Multiple Listing Service. Data maintained by the OBAR MLS is for the service’s own use and may not be a reflection of all real estate activity in the market.