February was not a vintage month for property sales on the Outer Banks. A total of 83 units were sold over the course of the month, which was the lowest figure in almost six years. This includes a 17% dip in the sales of single family home units compared with the previous month, and a slump of 9% in condominium sales.
In terms of residential units, Kill Devil Hills played host to the liveliest market on the Outer Banks, with 17 units sold in total. However, even this healthy figure represented a decrease on January’s total of 24, as the hangover and slowdown following 2017’s record breaking year continues.
Nags Head was the runner up, with 15 units sold; an increase of seven units on January’s total. This was a rare upwards blip on an otherwise comprehensively downward trajectory, however, as Hatteras Island fell from 16 to 11 units sold, month on month, Roanoke Island fell from four to two, Currituck fell from eight to three, Kitty Hawk fell from 10 to six, Southern Shores from six to three, Duck from five to two, and Corolla from 15 to 10. The only other regional success story was Colington, where the market expanded from two to 10 units sold, and actually experienced a year on year increase.
Fewer units may be selling, but these units are selling for higher prices than in recent years. In both January and February, sold price per square foot was in excess of the values posted in 2017, 2016 and 2015. This value also increased between January and February of this year. The average year-to-date sale value for a residential unit in February 2018 was $454,239; 13% higher than the previous year.
A solid performance from single family detached units was brought down by the year-to-date average value for condominiums, which slumped from $267,290 to $221,289, for a decrease of 17%. Despite this, the overall average value for residential properties did manage to rally in the 12 months leading up to February 2018, rising 7% to $424,542. This is good news for the future of the market.
In addition to this, the buyers who are purchasing property on the Outer Banks appear to be more motivated and driven. Properties are spending less time on the market than at any point in the last four years. On average, properties were sold within 120 days of being listed, compared to around 200 days over the last two years and almost 250 in 2015.
The inventory of residential properties on the Outer Banks has remained relatively consistent over the last four years, but has been falling slightly with each year. February 2018 represented another year on year fall in inventory levels, posting a total of just below 1500 units. This is compared to almost 2000 in 2015 and just over 1500 in 2017. The year on year decrease in February was the smallest in over four years.
Elsewhere on the Outer Banks, sales of vacant lots and undeveloped land exploded. This market has been steadily increasing for some time. February saw a 19% increase in parcels of land sold. This brings the year-to-date increase in total units sold to 48% and reduces the available inventory by 18%.
For more information regarding the property market on the Outer Banks or for assistance in buying or selling a property in the area, get in touch with the Outer Banks Real Estate Company team today. With our local knowledge and our passion for the market, we can give you what you need.