The summer of 2018 was relatively busy compared to recent years. The number of OBX home sales over the last few months has been fairly similar to 2017. Last year was our best year since the boom years of the last decade. Poor weather hampered sales earlier in the year but brisk summer/fall sales are helping us catch up. According to the Outer Banks Association of Realtors’ August report, the number of residential sales for the year is now off just 3% compared to last year. See our full fall report here.
Indicators Are Up
We are seeing median prices, average prices and the sold price per square foot gradually increase. Median sale prices are up 9% compared to this time last year. Sold price per square foot for all residential homes has not gone below $190 since October of last year. Two years ago we rarely saw months where the sold price per square foot was above $190. This indicator is for all Outer Banks single family homes so this number should not be used for most market segments.
One new trend worth mentioning is that the inventory has gone up over the summer. Historically speaking, inventory peaks in June or July and continues to drop until January. Inventory will then increase again until the summer. Since sales are fairly stable, I think this increase in inventory is due to the fact that prices are slowly coming back. Many sellers now believe that they can sell their property for an acceptable amount. It will be interesting to see if this increased inventory slows the improvement of some of the market indicators in the short term.
Well priced properties are selling quickly and may sell for more than asking price in this market. OBX Homes with major updates are also selling quicker. If you are a buyer don’t hesitate to make an offer on a good value or you’ll likely miss it. Sellers receiving no showings or offers likely need a price or condition improvement. Check out statistics on your preferred area or town in our full fall report.