Three Keys from the November 2022 OBAR Statistical Report…
Last month the Outer Banks hit a new high for median sales price of $600k, and Hatteras Island specifically was $621,250.
In the November report, the overall Outer Banks median sales price dropped to $519,654, yet the Hatteras Island figure stands at $618k. So Hatteras Island sales are keeping pace with last month.
There are only 76 single family homes for sale on Hatteras Island as of this writing, so the low inventory is keeping prices really solid in our area. The average days on market for a home was 179 days in 2020. It dropped to 90 days in 2021, and now the average days on market for a home on Hatteras Island is only 49 days – less than a third of what it was!
Vacant lots are becoming harder to find as well. There were 190 vacant lot sales YTD in 2021, and only 140 during the same time period this year on Hatteras Island. The current available inventory of vacant lots is only 81. If you find a nice soundfront or waterfront lot that you like, it might be a good time to secure it. There are only so many buildable waterfront lots left on the island.
The Same Story Every Month
In November 2019, we had an inventory level of 1,493 homes. Despite the rapid fall to the low of 377 available in 2021 and a notable increase since then, last month’s inventory level was still essentially one-third of pre-Covid levels. I read an interesting statistic in US News & World Report that two-thirds of U.S. homeowners have a locked-in mortgage rate of 4% or less. Until mortgage rates get back close to those levels, those owners don’t have much of an incentive to sell.
Lot Prices Hit an All-Time High
We had a record median sales price for residential sales last month, and now we have a record for vacant lots in the November report – a $160k median sales price. With mortgage rates remaining above the 6% mark, a lot of buyers are securing the site of their future beach houses. This is across the entire Outer Banks area and not Hatteras Island-specific, but last year the median sales price of a lot on Hatteras Island YTD was $106,000. For 2022, it’s up to $125,250.
Hatteras Island Stays Hot
The key figure to me is the average days on market – this number has continued to trend downward since 2020. Sales volume has slowed down but it doesn’t mean prices are falling or homes aren’t selling quickly. It just reflects that a lot of sellers are happy with their 4% mortgage rates and don’t want to look for a new house in today’s rate environment. Here’s hoping that rates come down in 2023 and it provides some relief to buyers who really wanted a beach house for Christmas this year.
I hope you get it in 2023!
If you would like to see the entire report you can view it every month on the OBAR website:
Thanks for reading and enjoy some time with your families! Merry Christmas!
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% of Coldwell Banker agents worldwide. 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 questions on the Hatteras or greater OBX real estate market, 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 signing up at https://mailchi.mp/43cd4a4bf1a6/obxnewsletter.