A
nother year has come to a close, and the Outer Banks Association of Realtors' statistical reports reveal an interesting trend. Hatteras Island was the only area that didn't see year-over-year home price appreciation, despite being in high demand due to its unique features such as government-owned land, easy access to waterways, and sparsely populated beaches.

    However, it's essential to note that sales volume on the entire Outer Banks was significantly lower in 2024 compared to 2020-2022. This reduction in sales can skew the data, making it challenging to determine the actual home price appreciation. A graph of sales volume over the last few years shows a decline from 2021 levels.

    The main reason for home prices increasing in nearly every area is the low inventory levels. The Outer Banks are still behind 2019 inventory levels, and real estate is all about supply and demand. While supply is slowly returning to normal, demand remains affected by today's mortgage rates.

    According to the year-end report from the Outer Banks Association of Realtors, here are the town-by-town home price breakdowns:

    * Corolla: $860k (up 6%)

    * Duck: $889k (up 11%)

    * Southern Shores: $785k (up 6%)

    * Kitty Hawk: $592,500 (up 2%)

    * Colington: $485k (up 3%)

    * Kill Devil Hills: $550k (up 3%)

    * Nags Head: $825,500 (up 22%)

    * Hatteras Island: $569k (down 4%)

    * Manteo: $557k (up 14%)

    * Currituck Mainland: $388k (up 1%)

    * Ocracoke: $568k (up 15%)

    The big winners last year were Nags Head, Ocracoke, Manteo, and Duck. Hatteras Island was the only area to see home price depreciation for the second consecutive year.

    As we move forward into 2025, it's essential to note that mortgage applications do not necessarily indicate homebuyer demand. A drop in mortgage rates can lead to an increase in mortgage applications, but this doesn't mean that demand for homes is immediately high. Potential buyers are at various stages of the homebuying process, and looking at mortgage applications doesn't capture pent-up demand or cash buyers.

    The entire year-end report from the Outer Banks Association of Realtors can be viewed on their website.