Pictured home: 29-2257 Old Mamalahoa Hwy. Hakalau, HI
As we ring in a new year things are still rolling right along. Prices continue to inch up as inventory remains constrained.
Permitting is a huge issue in creating new supply. Our EPIC system may some day offer relief, but for now the backup is forcing contractors to scratch for jobs to keep their workers busy. Some projects are being started while awaiting permits.
Lack of inventory causes upward pressure on pricing causing more and more local buyers to consider outlying neighborhoods where prices are still within reach.
Fewer loan programs and insurance caps in lava zones 1 & 2 also impact affordable neighborhoods. Interestingly, a few of the reported neighborhoods have no active inventory at all.
A few other fun facts: pricing and demand for Hilo is basically the same as HPP. The difference is that the HPP product is newer and situated on a larger parcel. Also, interesting is that pool homes (even above ground) seem to sell faster and for more money, regardless of climate. It makes sense that as prices jump in HPP and Hilo, buyers consider areas such as Ainaloa or even the Volcano subdivisions.
Prices in Ainaloa jumped about 7% this past quarter alone. The same thing basically occurred in the subdivisions near the National Park despite renewed rumbling in the area.
A predicted increase in interest rates will likely do little to quell activity. Rates are so low that incremental increases won’t be enough to slow activity. With almost 5 years of demand in the most popular areas (barring unforeseen circumstances), sales will remain brisk.
As vaccination rates increase, we are seeing a decrease in sight-unseen purchases but with COVID cases on the rise, the big city exodus will likely continue.
Buyers, remember the best plan of success if you are buying is to contact a busy listing agent. They have pre-market inventory in their pipeline.
Sellers, don’t assume your property will sell by listing at any price. Property prep and pricing consistent with the current market equal success!
Don’t see your neighborhood here? Just contact us at Hawai`i Life – Team Nakanishi and we’ll set up complete and tailored information for any property on Hawai`i Island. Happy 2022!
* Information provided by Hawaii Information