Hard to imagine we are already into the second decade of this century! I looked back at my notes from way back in 2006 where I commented on the low interest rates (then 5.5%). Back then, lending was kinda like the “wild, wild west.” Just about anyone could get a loan. This is no longer the case, of course.
Comparing sales numbers between then and now, it’s interesting that only 78 homes sold in Hilo during the first quarter of 2006. The median sales price was $309,000. It’s interesting to note that today’s numbers across the board are much more robust than even the time considered the highest our market has ever been.
Hilo sales during the 4th quarter of 2019 hit 110, which was even lower than the prior quarter. Interest rates are sub 4%, and we’re about as busy as we can be. Buyers tend to be end users who plan to owner-occupy. Island-wide figures show a 3.5% increase in sales numbers and about a 5.7% bump in pricing.
Puna pricing is only off less than 1% prior to the lava flow while the number of sales really didn’t change. One point of interest (not shown) is that the day’s homes are staying on the market in Ainaloa and Nanawale decreased significantly. There is still much more supply than demand across the board. This tells me that (overall) we will remain in a seller’s market.
Segments of the market may not respond to this demographic. For instance, homes at the higher price points in a given market may take much longer, and prices may soften.
What About Me?
Don’t see your market or don’t have a computer? No problem. We’ll happily provide a custom report by email or snail mail if you wish. Whether buying or selling, Team Nakanishi is always here to help!