July 20th? Already?! 2012 is flying by!
As they say, “time flies when you’re having fun,” and the OBX real estate market has been tons of fun in 2012. Yes, actual fun. In real estate.
The real estate industry has been publicly beaten down for the past few years, but we are happy to report that 2012 is officially breaking those downtrodden trends here on the Outer Banks.
We are happy to report that the strong growth in 2012 continues, but before I jump into the numbers, here’s a quick reminder about what The Seaside Report is.
We have combined the forces of both sides of our business – Outer Banks real estate sales with Coldwell Banker Seaside Realty & OBX vacation rentals with Seaside Vacations – to bring you the first report to offer a comprehensive view of the OBX real estate market – real estate sales & vacation rentals.
With the formalities out of the way, check out these results for May 2012…
Let’s start with a few quick highlights, and then I’ll dig into the numbers a little deeper.
Outer Banks Real Estate Sales
(Data Source: OBAR)
Here are a few highlights from the first 6 months of 2012 compared to the first six months of 2011:
- Unit sales are up
- Volume is up
- Average sale slightly down ($321,073 compared to $340,349 last year)
- Active inventory down 3%, which is a good sign!
Year to Date Sales
- Overall – up 19% (1047 units vs 880 units)
- Residential – Up 16% (813 units vs 703 units)
- Land – Up 39% (225 units vs 162 units)
- Commercial – up 7% (16 units vs 15 units)
Year to Date Under Contract
- Overall – up 17% (1172 units vs 1003 units)
- Residential – up 12% (920 units vs 823 units)
- Land – Up 41% (237 units vs 168 units)
- Commercial – Up 25% (15 units vs 12 units)
Inventory
- Total number of properties available in active inventory has taken a 4% decline compared with June 2011.
- Active residential listings declined by 7%
- Active commercial properties declined by 22%.
- Active land listings has increased by 5%.
Distressed Property (Residential)
- Distressed property sales contributed 25% to the total number of sales in June
- Short Sales made up 9%
- Bank Owned made up 16%
Oceanfront homes have seen a slight increase in sales and price point. As of the end of June, there have been 67 oceanfront homes sold YTD compared to 59 last year, and the good news is that the average price has increased to $995,105 compared to last year when it was $881,030.
We’ve also seen an increase in condo sales, in particular oceanfront condos. 28 OF condos sold as of the end of June compared to only 7 last year at this point. Another positive sign is that only 7 were cash transactions which indicates the financing obstacles on condos that we’ve experienced over the past few years may be behind us.
Land sales are up! YTD there have been 225 land sales compared with 162 last year – a 38% increase in units. Median sales price on land this year is $65,500 which is down from the $87,225 from last year.
Pretty great 6-month performance for the OBX real estate market. Now let’s dig into Q2.
Top 5 Outer Banks Real Estate Firms – 2012 Year to Date
| Rank |
Firm
|
Volume
|
| 1 |
Coldwell Banker-Seaside – KH
|
$64,473,875
|
| 2 |
RE/MAX Ocean Realty – KDH
|
$57,832,472
|
| 3 |
Sun Realty – KDH
|
$41,857,200
|
| 4 |
Village Realty – NH
|
$37,778,705
|
| 5 |
Twiddy & Co. – Duck
|
$35,077,500
|
Outer Banks Vacation Rental Market
(Data Source: NAVIS GeoAnalytics)
Average Booking Window
Legend: 2011; 2012
This graph demonstrates the average number of days between booking and check-in date. This graph is summarized by month of booking, rather than month of stay.
For example, the reservations made at this time of year are about 80 days in advance of their check-in date. This booking window increased by 10 days from May. As we move through the summer months, and guests start planning their Outer Banks vacations to enjoy the gorgeous OBX fall (my favorite time of year on the OBX 
), we’re seeing a slight increase in the booking window. This is consistent with the 2011 numbers.
The takeaway message is that guests should start to plan their fall getaways now to make sure they get the house and location they are looking for.
The Seaside Report: Average Booking Window – June 2012
The Seaside Report: Average Booking Window – YoY Variance – June 2012
Average Length of Stay
Legend: 2011; 2012
The Length of Stay graph illustrates the average number of days between check-in date and check-out date of reservations, summarized by check-in month.
As would be expected for the Outer Banks, the average stay is about seven days for the summer months and varies in the shoulder season.
A strong takeaway here is that full weeks are a must for the summer months, but Spring and Fall offer great opportunities for shorter stays and discounted rates, while maintaining the great benefits of gorgeous weather, empty beaches, and ample attractions and activities.
The Seaside Report: Average Length of Stay – June 2012
The Seaside Report: Average Length of Stay – YoY Variance – June 2012
Average Stay Value
Legend: 2011; 2012
The Stay Value graph illustrates the average revenue actualized or projected for reservations, summarized by check-in month.
The clear message with this graph is that demand is high and supply is low during the summer months, and as a result, prices are driven higher during the summer months. As mentioned above, Spring and Fall offer great opportunities for shorter stays and discounted rates, while maintaining the great benefits of gorgeous weather, empty beaches, and ample attractions and activities.
July is the clear peak, and prices begin to fall towards the end of August – when kids go back to school.
It is interesting to note that the stay values are slightly higher for 2012 compared to 2011. This seems to signal that discounts are less likely for 2012. October dips a bit right now, but there is plenty of time for that stay value to recover leading up to October, and November and December are already very strong.
The Seaside Report: Average Stay Value – June 2012
The Seaside Report: Average Length of Stay – YoY Variance – June 2012
Bookings
Legend: 2011; 2012
The Bookings graph illustrates the number of reservations actualized or on the books, summarized by check-in month.
This graph gives a good view of the “strength” of the reservations over the previous year. Reservations are up, which indicates that early reservations are wise and prices should remain constant.
A couple points of interest; June was very strong over last year (+26%), but July is slightly under-performing in comparison to 2011 (-16%). We still have a few weeks of last-minute bookings to catch-up with July; so this will be an interesting result next month.
In general, bookings usually increase right up to the summer check-in days as last minute vacationers scramble to find available homes. July bookings should catch-up, and we should continue to see a strong growth in the remaining months ahead.
The Seaside Report: Bookings – June 2012
The Seaside Report: Bookings – YoY Variance – June 2012
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