Despite drop in May numbers, Outer Banks real estate and rentals continue hot streak

Despite drop in May numbers, Outer Banks real estate and rentals continue hot streak

June 18th, 2022

The Outer Banks Association of REALTORS® has released their May 2022 real estate statistical report. The report highlights year-to-date and month-to-month sale comparisons for residential, commercial, and lot/land properties included in OBAR’s Multiple Listing Service.

The report shows 2022 year-to-date sales for all property in the MLS has declined slightly for the last three months and year-to-date sales are down 19% when compared to May of 2021. However, when compared to April 2022, they are up.

Residential median sale prices have also risen 26% to $606,250 and is also over 8 percent higher than April 2022. Lots/land property sales is up 2 percent, and commercial property sales is up 74% when compared to this time last year.

In Dare County, there has been an increase in new builds. Year-to-date, 140 building permits for residential properties have been issued in Dare County compared to 122 in May of 2021.

“Lot sales are increasing along with building permits being issued which is reflective of the lower inventory of existing homes, so the ‘decline’ is not truly a ‘decline’,” according to Tammy Aycock, Principal Broker with Saga Realty & Construction.

“Buyers are choosing to move in an alternative direction because there are limited options of existing homes available to purchase,” Aycock said. “We have noticed an uptick in our new construction contracts this year versus last year due to the continual lack of inventory.”

On the vacation rental front, OBAR President Doug Brindley of Brindley Beach Vacation and Sales said occupancy in May was down about 25 percent compared to May 2021.

“June through August is as full as it was last year,” Brindley said. He also wished fellow property managers a “happy summer — only 81 days left till Labor Day.”

Town-to-town comparison
Southern Shores was the only town that had an increase in residential units sold. The 6 percent increase was the equivalent of only 3 more units sold when compared to May of 2021. However, when compared to April 2022, 16 more units were sold in May.

Since February 2022, Duck has had the highest median sales price. When compared to the same time last year, Duck’s median sales price increased 41% to $915,000. That is a difference of $265,000.

In addition, the median sales price increased $17,500 compared to April 2022.
Overall residential days on market dropped to 37 from 66 when compared to the same time last year. Once again, Kitty Hawk had the lowest number of days on market at 24.

While there may appear to be a slight decline in real estate sales, OBAR’s report shows total sales and median sales price have increased over the year-to-date.

“I believe the numbers for the fourth consecutive month are reflecting the early shift in the market,” said Mike Siers of Howard Hanna OBX.

“With low inventory being the draw, if I was going to sell, I would do it today to take advantage of the high demand and low supply,” Siers added.

“Once interest rates rise, the buyer pool will be reduced, but there will still be buying opportunities for the meticulous buyer,” according to Siers. “And there are several on the market now that are a good value for the buyer!”

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