Things are going well this summer on the Outer Banks. We’ve had warm weather lately and a great holiday season so far. A question I hear frequently is “When will the housing market calm down?” It’s all about inventory – as long as we are well below historical inventory levels and demand remains high, there will be pressure on prices to keep rising.
There were three main takeaways from the Outer Banks Realtors Association’s June report.
Inventory is still low
As you can see from the graph above, we are recovering just enough inventory to be at last year’s level. And the green bars show that we are well below the levels of 2019, which was our last “normal”, pre-Covid year. We are catching up, but still need to more than double our current stock level.
Sales volume is slowing down
2021 was a record year for sales volume (total number of sales) but we are quickly returning to normal volume. It has a lot to do with interest rates. If you look at the volume of sales earlier this year before rates were quickly raised, you’ll see that it tracked 2021 quite closely. As long as rates remain high, it will continue to hurt housing affordability.
Real estate on Hatteras Island is doing well
Sales volume is slowing (down 31% year-to-date) on Hatteras Island, but prices continue to rise. Homes are selling more than twice as fast as in 2021 as more buyers are curious about owning a home below deck.
If you want to see the full report, you can view it monthly on the OBAR website:
Thanks for reading and enjoy the sun!
About the Author: Stephen Smith is an Outer Banks Realtor with Coldwell Banker Seaside Realty. He was recognized in 2021 as one of the top 10% Coldwell Banker agents in the world. He has lived on the Outer Banks for nearly 20 years and met his lovely wife on Hatteras Island. They currently reside in Nags Head with their daughter, but Hatteras Island is still home in many ways. For any questions on the Hatteras real estate market or larger OBX, you can contact Stephen directly at email@example.com or 252-216-9230. His website is https://www.stephensmithobx.com or you can receive his weekly newsletter by subscribing to https://mailchi.mp/43cd4a4bf1a6/obxnewsletter.