Only those who have absolutely no interest in real estate (is there such a person?) will be surprised to learn that inventory is low and prices are still inching up. It’s difficult to isolate the most important factors driving the current market but as I look at the chart, it’s clear that supply and demand will continue to cause prices to creep up.
The fourth column from the left combines the number of homes currently under contract/contingent (technically still active) with the active numbers to indicate current supply. We assume many of the under-contract properties will move to close, so the “active” numbers are certainly skewed on the high side. The demand number is derived by extrapolating the number of closed sales during the most recent quarter times 4 to determine the theoretical demand for the upcoming year.
You may recall that Danny Krause, our team stats guy, began tracking under contract homes on the East side of Hawai‘i Island in June. At that time, there were 207 homes moving to close. At the beginning of COVID, we logically expected a downward sales trend. Watch this.
During this past week’s Real Estate Wine’d Down, (our bi-weekly online meeting) the number of homes under contract ballooned to around 350! With many deciding to shelter in place and delay selling, inventory has remained very low.
The New “Showing” Norm
Meanwhile, agents have learned to sell property in an entirely different way. Sight unseen is no longer an anomaly. We have come to embrace this alternate sales method. Video including in-person walk-throughs supplemented by Matterport tours and pre-recorded video has become part of our normal marketing package. This only increases the importance of a great online presence.
Lava? What Lava?
In the “oh, how fast we forget” category, Leilani homes are selling. This past quarter saw 9 homes move to close and 7 are under contract. During the lava event, air quality at the Volcano Golf Course (and surrounds) became an issue. Not only is that market brisk, but sales over $650,000 are happening.
Join Us Online!
Team Nakanishi continues to track important issues as part of our Real Estate Wine’d Down Series. Join Ryan Kadota for great wine selection, and a new guest presenter every other week. Email us for your Zoom invite!