Pictured home: 219 Kipa St. Hilo, HI 96720
I’m happy to present the most recent market update for selected East Hawai`i neighborhoods! Thanks for all the good wishes! I’m thrilled that I managed to get this done for you! I’m doing really well and look forward to getting back in the field. By the time you read this, it won’t be long. In the meantime, let any member of our team know you need help and we’ll get it done!
Now, here’s what I see as I live my real estate life vicariously thru computer data and from feedback from Team Nakanishi buyer’s agents. We are seeing a lot of price reductions. When I look at the affected properties, most still seem properly priced. Days on Market is always part of the equation that leads to the decision to reduce the price. Clearly some properties have no real comps so the initial pricing might have been set to test the market anticipating a possible price adjustment in response to showing activity and feedback. Most, however, seem properly priced but talk of a slowing market is making sellers nervous.
Supply and Demand
If you look at the potential market demand, (column 6 top number), it’s clear demand is still much higher than the number of available homes. The demand number has decreased over time. That number is a function of the number of sales which has been artificially compressed based on supply. Recently, inventory is up and national reports predict continued activity and price increases.
Recall if you will the early days of COVID. As agents, we wondered how we’d make a living. It didn’t take long to find out! Nothing has really changed since the “work from home” life model and “vacate the inner cities” created a gigantic demand for larger homes, larger yards and warmer climates. Interest rates increased and then decreased. I don’t expect interest rates to go back to sub 3% but a 5% rate is actually pretty cherry!
Some surprises here (or maybe not) lies in comparing numbers in Hilo and HPP. They are surprisingly close. If you look at the under-contract dollar value compared to recent closings (sold), some markets seem to be exhibiting a downward trend. A 3-month window is small so it may take some time to see if this number truly reflects the market. One positive, local buyers and financed offers are again part of the conversation.
What About My Home?
Don’t see your neighborhood here? Let a member of Team Nakanishi know and we’ll get the information you need in two shakes. Take care and thanks again for the good wishes! P.S. Remember the Police drive to collect back-packs ends at the end of the month. Also, donate to our Food Basket if you can. See you soon!!