Watch this short video for a re-cap of the 2022 Oak Island Real Estate Market or read the article below to stay up to date on all things Real Estate for Oak Island, NC.
The Oak Island Real Estate Market for 2023 was another milestone year for our beloved paradise!
To get a historical sense of what happened I wanted to compare some key statistics from 2021 to 2022 to identify the trends of the market and offer some insight as to what you can expect to see in 2023.
SALES PRICES – Oak Island, NC
For 2022 the average sales price for homes on Oak Island increased 17.4%. That represents a substantial increase in property values well beyond a normal appreciation rate.
We peaked in value around mid-year and have since seen some slight declines but still ended the year with substantially higher pricing over 2023.
One of the biggest changes was a decrease in the competition amongst buyers that had been driving prices up well beyond asking prices the past couple of years. In 2021 you could expect to have multiple offers within a day or two on virtually every property for sale as long as it was priced within reason. This competition among buyers was regularly producing sales prices above asking price.
While the market has retained most of those gains in value pricing has leveled off, at least for the time being, as we closed out 2022. Even though buyers may not be quite as aggressive and offering over asking price as often, sellers are still getting offers very close if not higher than sales in 2021.
We have also seen an increase in inventory (the number of homes for sale) on Oak Island in the second half of the year for 2020 and beginning of 2023. The number of homes for sale in Oak Island increased 11.4% in 2022 compared to 2021. It is important to note that 2021 had historically low inventory levels across the Country and Oak Island was no exception. So even though we are seeing a slight increase housing inventory remains low at 2.2 months of supply, which is still very much considered to be a sellers’ market.
The number of new listings hitting the market also decreased in 2022, down 12.2% from the previous year. Pending sales dropped 28.3% as a result of decreased buyer demand as well as a decrease in New Listings. Closed sales decreased by 27.3% to mirror the decrease in pending listings. As we ended the year, we were still only looking at 2.2 months’ worth of housing supply/inventory on Oak Island, which is still very much considered a sellers’ market and low supply metric. There were points over the past two years where Oak Island had less than 1 month worth of housing inventory.
Homes that are properly priced and marketed are still selling quickly at great prices, so the inventory increase is largely due to overly aggressive asking prices, less desirable properties, insufficient marketing or a combination of these factors.
The average days on market for Oak Island homes in 2022 was 36 days representing a 9.1% increase over 2021. So, while it is taking slightly longer for a home to go under contract this represents a more normal marketing period. There are certainly exceptions with many properties still selling as soon as they hit the market with multiple offers. If you own a property on Oak Island and are curious about how your place fits into the current market conditions, please give me a call at 910-622-4576 or email [email protected]. I would be happy to provide you with a detailed analysis as it relates to your specific property.
The “list to sell” price ratio is the comparison of the asking price of a property vs. the final sales price.
On Oak Island this metric dropped very slightly down just .5% for the year compared to 2021. This is an average, and it is important to note that this number was higher in the first half of the year and lower in the second half. Sellers enjoyed receiving an average of 98.1% of their asking price in 2022. This number is very dependent on an individual property, how it is priced and how well it is marketed.
In summary, the Oak Island Real Estate market for 2022 was another milestone year. I will be watching the key indicators in the market very closely as we progress into 2023 to predict where this market will go in 2023. A relatively flat market is very possible with pricing staying consistent throughout the year. If we start to see a reduction in inventory levels than it is also possible that we will see home values increase, although not likely the double-digit percentage gains we witnessed the past 2 years. If we see inventory levels rise it is also possible that we could see a slight decline in home values as competition amongst sellers increases.
My prediction is that we will see a bit of both throughout the year with periods of increased inventory leading to momentary lower prices for buyers and quick shifts to more competitive situations for buyers, especially in certain categories like waterfront property.
This would mean that there will be opportunities for both buyers and sellers alike but be ready to act quickly and have a good game plan in place to capitalize on a market trying to find its “center”.
Whether you are thinking of buying or selling having a solid game plan in place will be critical in 2023. I am always up for helping you explore options and put together a solid game plan to accomplish your Real Estate Goals for Oak Island and surrounding areas along the coast. My group and I cover all of the beaches and coastal areas in North Carolina and are ready to help you.
Please call or text 910-622-4576 or [email protected] if I can be of any assistance in your 2023 real estate endeavors.
Market Stats – Oak Island, NC
