What if we told you that home sales had climbed a whopping 41% from last October? Well, it’s true, but we also were still in the grips of a lagging market due to the volcanic activity that ended in early August 2018. Next month, we should be seeing more realistic year over year pricing, but for this month, LUVA Real Estate will provide you with numbers from 2017, too.
Overall, what we are seeing is a continued lack of inventory under 1.6 million for single family homes. Homes priced lower than $550,000 in the North Kona area are going off the market within days of being listed. Well priced condominiums are also being quickly scooped up and it would appear sellers may be holding their homes until the winter market begins in mid December.
For single family homes in North Kona, 41 homes sold in October 2019, compared to 29 in October 2018, a 41% increase. For the record, 53 homes sold in October 2017. 38 condos changed hands last month compared to 43 in 2018 and 39 in 2017. The median price of a single family home in North Kona $655,000, a12.93% gain from $580,000 in 2018 and almost on par with $645,000 in 2017. The median price of the condominiums in North Kona in October was $350,000 a 12.9% increase from 2018 when the prices were $310,000 and lower than they were in 2017 when they hit $390,000.
Another look into the market is "year to date" figures which state that the year to date median price for a single family home is $649,000 and condos are $345,000. According to real time real estate data reports from Altos Research, the single family and condo market remains in a relative stasis in terms of sales to inventory. Prices have not been moving higher for several weeks. However, inventory is sufficiently low to keep Kailua Kona in a seller’s market.
South Kohala single family home prices have remained flat year over year at $580,000 and condo prices year to date are $345,000 a 6.15% increase from last October. In general, sales statistics around the island show a decrease in sales, but an uptick in pricing which is mostly attributed to lack of inventory.
We are not alone in this market trend. Good news for sellers around the country, home prices are on the rise. But buyers should brace for higher prices. Nearly all—93%—of the largest metros in the U.S. saw home prices rise in the third quarter over the past year. A shortage of homes for sale, combined with higher demand, continues to push home prices higher, according to the latest quarterly report from the National Association of REALTORS®, released at the NAR Convention and Expo on Thursday.
“Incremental price increases are to be expected, but the housing market has been seeing re-acceleration in home prices as more buyers want to take on lower interest rates in the midst of insufficient supply,” says Lawrence Yun, NAR’s chief economist. “Unfortunately, income and wages are not rising as fast and will make it difficult to buy once rates rise.”
If you want to discuss getting into the best position possible to make an offer on a home that comes on the market, please contact us at LUVA Real Estate and we can go through a check list of what you need to be prepared when the right home and the right price hits the market.