Q1 2025 Real Estate Market Report: Southern Shores, NC – Single-Family Homes

Overview

The Southern Shores real estate market in the first quarter of 2025 demonstrated moderate activity with a total of 20 residential single-family home sales. The overall sales volume reached $18,851,400, and the average sale price was $942,570, with a median price of $796,300. The average days on market (DOM) stood at 38 days, indicating a reasonably balanced market.

Sales by Financing Type

• Conventional Loans

  • Sales: 12 homes

  • Dollar Volume: $9,791,400

  • Average Price: $815,950

  • Median Price: $765,000

  • Average DOM: 47 days

• Cash Purchases

  • Sales: 8 homes

  • Dollar Volume: $9,060,000

  • Average Price: $1,132,500

  • Median Price: $1,200,000

  • Average DOM: 25 days

Insight: Homes purchased with cash had significantly higher average and median prices, as well as shorter market times, reflecting the competitive advantage of cash buyers in this market.

Sales by Area

• Southern Shores Oceanside

  • Sales: 3 homes

  • Total Volume: $4,152,000

  • Average Price: $1,384,000

  • Median Price: $1,352,000

  • DOM: 32 days

• Southern Shores Westside

  • Sales: 17 homes

  • Total Volume: $14,699,400

  • Average Price: $864,671

  • Median Price: $750,000

  • DOM: 39 days

Insight: Oceanside properties commanded significantly higher prices but made up a smaller portion of total sales volume. The Westside dominated in terms of transaction count.

Brokerage Involvement

• Co-op Sales: 18 transactions, $17.42M in volume, average price of $967,856

• Non Co-op Sales: 2 transactions, $1.43M in volume, average price of $715,000

Macroeconomic Context: Bond Market Volatility and Its Implications

Bond Yields and Mortgage Rates

The U.S. bond market in early 2025 experienced heightened volatility due to shifting economic indicators, Fed policy signals, and geopolitical uncertainties. Since mortgage rates are largely tied to the yield on 10-year Treasury notes and mortgage-backed securities (MBS), any instability in the bond market has a direct effect on homebuyer financing conditions.

• Rising Bond Yields: When yields increase, mortgage rates typically rise, decreasing borrowing power and housing affordability.

• Falling Yields: Declines can stimulate buyer demand by improving affordability, particularly important for conventional loan buyers.

Potential Impact on Southern Shores Market

• Buyers relying on financing (60% of Q1 sales) are more sensitive to rate fluctuations.

• Future increases in mortgage rates could suppress demand, especially in mid-tier properties (e.g., Westside homes).

• High-end, cash-driven segments (e.g., Oceanside properties) may remain resilient, as they are less impacted by credit conditions.

Outlook

Southern Shores remains a desirable market, especially for higher-end buyers and cash purchasers. However, continued bond market turbulence could temper conventional buyer demand in upcoming quarters. Realtors and investors should closely monitor rate trends and Fed policy statements to anticipate changes in buyer behavior.