We follow economist Scott Grannis blog from time to time. His recent post reflected on the Case Schiller statistics on housing prices as compared to those of Radar Logic. Read Mr. Grannis’ full post.
Buyers and Sellers Have More Balanced Negotiations
As the graphs show, prices leveled out beginning in 2009 from their steep drop and have turned upward, if slightly, in 2012. This is consistent with what we have seen in the market here on the Big Island. With inventory of properties for sale down, prices have started to rise and there is more balance in the negotiations between buyers and sellers.
We’ve seen numerous cases where buyers are having to pay list price (or very close to it) for a property because the sellers feel the market is improving and are unwilling to go any lower. The psychology of buyers is beginning to change in that they are no longer certain that waiting to purchase will lead to a lower price.
Housing Prices Follow Long Term Trend
This last chart is further evidence that housing prices have come back in line with long term trends and can rise from here.