With the recent election, many people have adopted a wait-and-see approach before buying a house to allow the markets to readjust. It seems, however, that the markets will continue to remain stable and even, gradually rise throughout 2017. So, if you’d decided to wait until post-inauguration for the economy to come to terms with new leadership, consider your wait over. The real estate market is still healthy and growing and homeownership may be the smartest investment that you make this year. The Big Island has a unique real estate market that buyers should get familiar with before making a purchase. In order to help you make the best possible buying decision, we strive to educate shoppers on the intricacies of our market. With that goal in mind we have prepared out Q1 2017 big island real estate update. Here’s what buyers should know:
Supply was low, demand still high
During the first quarter of this year, median sales prices jumped almost 20% from the same time frame the previous year while the total number of sales decreased by a rather small margin. So, what’s happening here? First, home value has been growing exponentially year over year, and 2016 to 2017 was no exception. People who chose to purchase homes and build equity during the last five years have enjoyed an incredibly prosperous period. In addition, more people than ever see stability in the market and are ready to buy. But, while there may be a lot of demand, that doesn’t mean that the supply is always available. Hawaii, in particular, has a limited amount of housing and it typically moves fast—very fast. The combination of higher prices and decreasing availability likely resulted in fewer sales this year over the same period last year. However, it’s a generally held belief that the real estate market heats up as the weather does—and Hawaii is no exception. We can likely expect to see sales numbers jump in the coming months.
Up & coming neighborhoods are growing—fast!
In 2016, we saw that several hot areas of the island were beginning to see more sales than ever before. Puna was our number one pick for up and coming areas, and this year saw a huge jump in median sales prices in the area. North Kona was another one of our picks, which also saw more than a 20% increase in median sales prices. There is still plenty of real estate available in these areas and more coming to market soon. We specialize in these areas so if you want to receive first notice on any available listings in these areas, contact us.
We hope this helps you make an informed buying decision this year. We’ll be back at the end of Q2 with our next real estate update. In the meantime, please don’t hesitate to contact us with and questions on the market, real estate, or anything else. We’re happy to help buyers better understand our unique market.
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