As we prepare to go into the new year, we thought you may appreciate a review of 2022 in real estate on Hatteras Island. It’s been another banner year for those invested in the Hatteras Island real estate market!
Rising interest rates designed to cool inflation and the real estate market resulted a more balanced market in 2022 than the last couple of years. Thanks to the lack of inventory on Hatteras Island this year, prices have continued to steadily increase – driven by demand from ready, willing, and able buyers who have been able to house shop without the pressures felt over the past couple of years of multiple offer situations and many sales well over asking prices. While we have seen a good percentage of the active listings make price reductions throughout the year, it is really just because many overzealous sellers have had to adjust their thinking as the Feds interest rate hikes were a reality check for buyers that had been willing to outbid competitors when rates were under 3%. We’ve found a nice balance between buyers and sellers now and the market remains healthy and thriving.
As of this writing on December 30, 2022, Hatteras Island has seen 347 single family homes sell at an average price of $727,310 (and a median of $629,000). That’s an increase of almost 24% over 2021’s average selling price at $587,000. Only 16 of those homes sold under $300,000, with just another 38 sales between $300,000 and $400,000. As you can imagine, this puts a strain on affordable housing for the local population and workforce servicing a thriving vacation destination. On the opposite end of the spectrum, 49 sales took place between $1 million and $3,195,000 on the island this year. With projected rental income as much as $375,000 annually on some of these homes, investors are enjoying nice profits as well as equity gains in our market.
Today, buyers have just 76 active listings to choose from, representing just about a 3-month supply of homes on the market. I recall when inventory exceeded more than a four-year supply during months through some tough years many of us remember.
Whether you own property on Hatteras Island or may be considering an investment, we hope you will reach out to us at NC 12 Realty for help navigating our ever-changing market. We have been helping buyers and sellers through the ups and downs for about twenty years and we would be honored to share our experience and insights with you too.
For fun, look back over the past 3 decades at the average annual selling prices of single-family residential homes on Hatteras Island on the following chart.
*Based on information from the Outer Banks Association of Realtors MLS for the past 10-year period, plus personal files collected for years prior.