Those sitting on the sidelines might be surprised at the comparison between last year and this. Even with slight inventory increases in some areas, all areas continue to be severely supply constrained. We are seeing price adjustments, but the data shows pricing remains fairly consistent with last year. Only in areas with a small sample size are we seeing significant (artificial) price differences. Remember, “available now” numbers add properties under contract (technically active) to currently active. Because many under contract properties will close, the number of available properties is actually much smaller than noted. An interesting walk down memory lane helps further put things in perspective.
Hilo and HPP Update
In quarter 1 of 2019, there were 136 active listings in Hilo. There are currently 53. The median price was $515,000 compared to $785k today! The number in HPP was 124 active (58 today). At that time, a median-priced HPP home was $341,000. Today’s number is over $500,000. Sold listings in Hilo hovered around $366,000 and $295,000 in HPP. Unfortunately for buyers, I do not see pricing going back to those pre-pandemic levels.
One of the most surprising numbers I’ve seen lately is not related to sales price but to rental amounts. I’m noticing rentals in Hilo and even HPP prices are now over $2,000 per month (for west side prices go even higher). It would take about 4 people working full-time at $13/hr or 2 people working 2 full-time jobs to come close to affording those prices.
Getting Creative
Many mortgage companies are getting creative about helping buyers feel comfortable buying once they see a property they like. After all, if you are going to pay such high rent, it may make sense to have the seller buy the rate down and refinance when rates decline. Some programs advertise zero cost refinancing in the future. Don’t see your neighborhood? Don’t do computer? No problem. We’ll even snail mail the information if you wish. Whether buying or selling, Team Nakanishi is always here to help. On to the rest of 2023!
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