The main economic driver on the Outer Banks is real estate, and to meet the need for a detailed analysis of the current Outer Banks real estate market, including the often ignored but incredibly important vacation rental market, we have created the monthly “Seaside Report.”
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.
As always, we appreciate your input, and we encourage you to leave your comments below. We are happy to address any questions you may have, and we are always interested in suggestions for improvement.
Outer Banks Real Estate Sales
(Data Source: OBAR)
2012 is off to a fantastic start for Outer Banks real estate. The winter months are typically a slow period for real estate, but January was a very strong month, and February has continued the trend. These are very strong trends for the 2012 OBX real estate market.
Year-to-Date Sales
- Overall – up 24% (254 units vs 206 units)
- Residential – Up 19% (202 units vs 170 units)
- Land – Up 45% (48 units vs 33 units)
- Commercial – up 33% (4 units vs 3 unit)
Year-to-Date Under Contract
- Contract Overall – up 25% (381 units vs 306 units)
- Residential – up 15% (283 units vs 247 units)
- Land – Up 51% (89 units vs 59 units)
- Commercial – Up 200% (9 units vs 3 units)
Inventory
- Overall, inventory has declined by 1% when compared with inventory in 2011
- Land inventory has increased by 5%
- Commercial inventory has increased by 9%.
- Residential inventory continues to decline and is down by 6%.
Distressed Sales: (Distressed = Bank Owned and Short Sales)
- 13% of the active inventory in the MLS
- Sale of distressed property accounted for 44% of residential property sales in February.
- Total distressed property sales were down by 4% from 2011.
Top 5 Outer Banks Real Estate Firms: February 2012
|
Rank
|
Firm
|
Volume
|
| 1 |
Coldwell Banker-Seaside – Kitty Hawk |
$20,832,100
|
| 2 |
RE/MAX Ocean Realty – Kill Devil Hills |
$14,057,176
|
| 3 |
Sun Realty – Kill Devil Hills |
$11,218,720
|
| 4 |
Corolla Classic Vacations – Corolla |
$7,935,708
|
| 5 |
Midgett Realty – Avon |
$7,891,356
|
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 140 days in advance of their check-in date. This booking window has dropped by 30 days from January. Considering that the summer is the busiest time of year on the Outer Banks, this decline in booking window makes sense. We should continue to see this booking window decline as we approach the summer months.
The takeaway message is that guests should book early for summer months in order to reserve the most desirable homes and weeks – at this point, about 140 days in advance, but that window is declining every day as we approach the summer months.
Seaside Report: Average Booking Window – February 2012
Seaside Report: Average Booking Window – YoY Variance – February 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.
Seaside Report: Average Length of Stay – February 2012
Seaside Report: Average Length of Stay – YoY Variance – February 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.
Seaside Report: Average Stay Value – February 2012
Seaside Report: Average Length of Stay – YoY Variance – February 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 is very strong over last year (+30%), but July is slightly under-performing in comparison to 2011. This will be a trend to keep an eye on.
Seaside Report: Bookings – February 2012
Seaside Report: Bookings – YoY Variance – February 2012
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