Outer Banks Real Estate Market Surges to $16 Billion

News Summary

The Outer Banks real estate market is thriving, with total property values reaching $16 billion. Increased sales activity, driven by low interest rates and significant improvements in infrastructure, has sparked buyer interest. The January and February sales have surpassed last year’s performance, showcasing a robust demand for ocean-view properties. With a 25% increase in property values over the past seven years, the Outer Banks is attracting buyers from across the nation and beyond, making it a prime destination for real estate investment.

Exciting Times for the Outer Banks Real Estate Market!

The Outer Banks are not just a beautiful vacation spot; they are making headlines as the real estate market grows to a staggering $16 billion. Yes, you heard that right! Over the past few months, the buzz around property sales has reached a whole new level, setting the stage for a thrilling year ahead.

Sales Soar in the New Year

January and February have wowed everyone with a burst of activity. Sales have exceeded last year’s levels, and buyers are snatching up properties—especially those with ocean views and excellent rental potential. The allure of owning a piece of beachfront paradise is stronger than ever, which is evident from the continued interest across the board.

What’s Behind the Thriving Market?

The wealth among buyers is significant, creating an energetic and highly active real estate scenario. A recent report from Dare County shows that the total taxable property value has reached an impressive $15.9 billion. Guess what? That’s a whopping 25% increase in property value compared to just seven years ago! With average annual growth of about 4%, this rise in property value signals a robust comeback for the Outer Banks.

Take a trip down memory lane to 2005 when property values peaked at $16.9 billion. Unfortunately, the recession pulled those numbers down to $11.9 billion, but things are looking up now as values climb back and approach levels not seen in the last 15 years.

The Impact of Infrastructure Improvements

Market growth on Hatteras Island is thriving thanks to vital improvements like new bridges and ongoing road repairs, helping to recover from the storm damage. As property interest grows, so do the falling interest rates, which have dipped below 4%. This low rate is a boon for potential homeowners and investors alike, driving more people to explore the real estate market.

A Snapshot of Property Ownership

In the 2020 revaluation, Dare County revealed that there are approximately 41,343 privately owned parcels. Surprisingly, less than half of these parcels are owned by county residents. About 25% are owned by buyers from Virginia, while owners hail from all 50 states and a handful of foreign countries.

Average Prices on the Rise

If you’re curious about home prices, the average sale price for single-family homes has hit $445,100 over the past three years, and oceanfront property values now hover around $1 million. In terms of property ownership, Kill Devil Hills stands out with 7,708 parcels, while Nags Head boasts the highest overall property value at $2.97 billion.

Record-Breaking Sales Numbers

The real estate scene has been buzzing with excitement, as a recent surge led to 166 properties closing in Dare County, with prices ranging from $69,500 to a staggering $3 million. January witnessed the highest number of sales since 2005, with 176 transactions across Dare and Currituck counties, along with parts of Hyde County. More astonishingly, February recorded a whopping 507 properties under contract—truly the most in recent memory and a dramatic rise from last year’s figures.

A Bright Outlook Ahead

Colington has seen sales numbers skyrocket, with median prices jumping nearly 50% over the previous year. The end of 2019 reported the most sales since 2005, with 2,609 sales—approximately 400 more than in 2018. Buyers today are reportedly more knowledgeable and cautious, and there is optimism that this current surge won’t result in another market collapse like in years past.

With beautiful properties and a thriving market, the Outer Banks are more than just a vacation destination; they are a vibrant hub for buyers seeking to invest in a slice of this coastal paradise. So, whether you’re looking to buy or just dreaming of your future beach home, the Outer Banks are hot right now!