Aloha and welcome to the latest in real estate news and trends. I'm Lance Owens (RS) of LUVA Real Estate, and I'm excited to share insights from our partners at KCM. We're dedicated to keeping you informed about the ever-changing real estate market so that you can make informed decisions. Let's dive into the latest updates. (the chart above is local numbers)
The current state of the housing market is uncertain and constantly evolving. As we head into the spring months, you may have questions about what to expect in terms of inventory, pricing, and mortgage rates. Here’s what industry experts have to say:
According to Selma Hepp, Chief Economist at CoreLogic, competition among buyers is increasing, and housing supply typically grows during the spring. This is also a time when many people are relocating for work or other reasons.
Greg McBride, Chief Financial Analyst at Bankrate, believes that while he doesn't expect significant price changes in a short period of time, the housing market is showing signs of improvement. He notes that a surge in activity with low inventory is a good sign for home prices.
Lance Owens, West Hawaii Association of REALTORS 2018/2022 Board President, notes that the West Hawaii market is heating up again, as seen by the chart below sales hit the bottom in January, sales volume (blue) is up, number of sales is increasing, median price has stayed high, and higher than it was a year ago and inventory has tightened up again with only 87 active FS homes on the market, 13 under a Million and 34 are in the sweet spot of $1-2million, the rest sit between $2-28 million.
Rick Sharga, Founder and CEO of CJ Patrick Company, advises buyers to act quickly if they find a home they love and can afford, as home prices in most parts of the country are not likely to crash. Mortgage rates may also decline only gradually or not at all this year.
Jeff Tucker, Senior Economist at Zillow, notes that the market is still relatively favorable for buyers who can overcome affordability hurdles. However, he cautions that competition for homes may be more intense than expected due to the limited number of homes available for sale.
Bottom line: if you're considering selling your home, now may be an opportune time to do so while inventory is low. For buyers, it's essential to work with knowledgeable advisors to navigate the current housing market successfully. Regardless of your plans, staying informed about market trends and seeking expert advice will help you make confident decisions in this uncertain time.