Outer Banks Real Estate Market Update
If I had to sum up the current Outer Banks real estate market in one word, it would be “Affordability.” Before diving into why this is the case, let’s take a quick look at the current numbers. Residential sales through the Outer Banks Association of Realtors’ MLS are up 1% in the first half of 2024. This modest gain is largely thanks to a strong performance in June 2025 compared to June 2024. On the other hand, land sales during the same period have dropped by 11%. Inventory has increased by just 8% year-over-year, marking the smallest annual rise in listings in recent memory. This steady inventory level, combined with the uptick in residential sales, could signal that we’ve reached the bottom of this real estate cycle—but only time will tell.
The primary reason sales have remained relatively low over the past six months is affordability. Properties are simply not as attainable as they once were. Outer Banks real estate trends show that rental income for many vacation properties has stagnated or declined over the past few years, while expenses—such as rising insurance costs—have increased. Buyers relying on financing are still contending with interest rates hovering around 7%. Many are also concerned about the additional costs of deferred maintenance or necessary updates, like modernizing kitchens and bathrooms.
Affordability remains the crucial factor in today’s market. Outer Banks real estate trends indicate that a single percentage point drop in interest rates could potentially bring more buyers into the fold. If you’re considering selling your property, now is the time to think strategically about updates, maintenance, and maximizing rental income. At Scott Team Realty, Sandy, Maggie, and Jeff are here to help you determine which improvements will make the biggest impact in today’s market.
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