August Market Update (for July)

The Outer Banks real estate market continues to show solid home values, but a more balanced and selective market than we saw a few years ago. Inventory has increased in some areas, buyers have more choices, and pricing correctly from the beginning is becoming increasingly important.

*Duck's median price decline is heavily influenced by the mix of homes that happened to sell during the period; its average sales price is down only 4.3% YTD.

Corolla remains active. Through July, closed sales were up 17.3%, pending sales were up 10.7%, and the median sales price increased 3.2%. Interestingly, the market has also become more efficient, with YTD days on market falling from 95 to 75 days.

Duck continues to be one of the tightest markets. Only 14 homes were in inventory at the end of July, representing just 2.3 months of supply. Homes that sell are moving quickly—the YTD average is only 36 days.

Kill Devil Hills is showing a little more buyer choice. The median sales price is up 7.1% YTD, but inventory has increased nearly 45%, pushing the market to 4.8 months of supply. That's a meaningful change from last year and gives buyers more negotiating power than they had previously.

Nags Head continues to post strong price numbers. The YTD median sales price is $840,000, up 10%, while the average is up 15.5%. At the same time, inventory is up 39%, and days on market have increased to 65. In other words, values remain strong, but buyers are taking a little longer to make decisions.

Southern Shores remains remarkably stable. The YTD median is $800,000, up 1.6%, while inventory is actually down 13.6%. However, YTD days on market have increased from 43 to 61 days, suggesting buyers are being more deliberate.