Amid discussions in the US Senate and Congress about a new tax bill that would cut state and local taxes which would take a toll on the mortgage interest deduction, the one thing for sellers to take note of is that the new proposed tax bill and the prospect of rising interest rates make predictions for next year’s market tenuous at best. If you are considering selling in 2018, now may be the time to act. Waiting for the spring market to get top dollar for your home may be a gamble according to real estate experts discussing high priced housing markets, such as West Hawaii where the median price of a single family home is over $500,000.
With interest rates raising as early as December, buyers should consider acting now especially if they are financing a purchase. Any market softening that might happen next spring, could be offset by the impact of increased interest rates on mortgage affordability. Numerous sources predict a rate hike not just next month, but again in mid-2018.
Median Sales Price
According to data from the Hawaii Information Services, South Kohala residential median prices have risen 12.5% from last year at this time from $540,000 to $608,000 and condo prices have dropped 16.8% year over year from $486,000 to $383,000. In North Kona home prices rose 16.07% from $560,000 to $650,000 year over year. For condos prices dropped 16.8% from $318,500 to $265,000. South Kona saw a modest gain of 3.43% for single family homes year over year from $510,000 to $527,500.
Sales Volume Continues to Rise
In terms of number of sales for single family homes, there continues to be a strong demand for homes in West Hawaii. South Kohala rose 66% year over year, North Kona rose 31% and South Kona rose 200%. The condo market in North Kona rose 21.88% year over year, while South Kohala rose 8.7%.
Signs of a Fall Slow Down?
According to real time real estate market statistics tracker, Altos Research, the market report for Kailua Kona, shows that Inventory has held steady at or around 180 with an average 181 days on the market. (that includes multi-million dollar properties). The market has shown some evidence of slowing recently. Both prices and inventory levels are relatively unchanged in recent weeks. 16% of the homes in Kailua Kona have been relisted while 28% have had price decreases. These are signs of a slowing market, to be expected right before the winter holidays. Homes in the lower range, about $530,000, are selling as the exact amount are being listed, so inventory is holding steady.