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10 West Hawaii Real Estate | September 1, 2017 Home Prices Jump 6.2 Percent in Second Quarter; Eclipse 2016 High The headstrong supply and demand imbalances in much of the country slightly tempered the pace of sales and caused home prices to maintain their robust growth in the second quarter, according to the latest quarterly reportby the National Association of Realtors®. The national median existing single-family home price in the second quarter was $255,600, which is up 6.2 percent from the second quarter of 2016 ($240,700) and surpasses the third quarter of last year ($241,300) as the new peak quarterly median sales price. The median price during the first quarter increased 6.9 percent from the first quarter of 2016. Single-family home prices last quarter increased in 87 percent of measured markets, with 154 out of 178 metropolitan statistical areas1 (MSAs) showing sales price gains in the second quarter compared with the second quarter of 2016. Twenty-three areas (13 percent) recorded lower median prices from a year earlier. Lawrence Yun, NAR chief economist, says home prices in most metro areas continued their fast ascent in the second quarter because supply remained at pitiful levels. “The 2.2 million net new jobs created over the past year generated significant interest in purchasing a home in what was an extremely competitive spring buying season,” he said. “Listings typically flew off the market in under a month2 — and even quicker in the affordable price range — in several parts of the country. With new supply not even coming close to keeping pace, price appreciation remained swift in most markets.” Added Yun, “The glaring need for more new home construction is creating an affordability crisis that needs to be addressed by policy officials and local governments. An increasing share of would-be buyers are being priced out of the market and are unable to experience the wealth building benefits of homeownership.” Twenty-three metro areas in the second quarter (13 percent) experienced double-digit increases, down from 30 areas in the first quarter (17 percent). Overall, there were slightly more rising markets in the second quarter compared to the first quarter, when price gains were recorded in 85 percent of metro areas. Total existing-home sales3, including single family and condos, slipped 0.9 percent to a seasonally adjusted annual rate of 5.57 million in the second quarter from 5.62 million in the first quarter, but are still 1.6 percent higher than the 5.48 million pace during the second quarter of 2016. At the end of the second quarter, there were 1.96 million existing homes available for sale4, which was 7.1 percent below the 2.11 million homes for sale at the end of the second quarter in 2016. The average supply during the second quarter was 4.2 months — down from 4.6 months in the second quarter of last year. Last quarter, a rise in the national family median income ($71,529)5 was not enough to offset weaker affordability from the combination of higher mortgage rates compared to a year ago and rising home prices. To purchase a single-family home at the national median price, a buyer making a 5 percent down payment would need an income of $56,169, a 10 percent down payment would require an income of $53,213, and $47,300 would be needed for a 20 percent down payment. “Mortgage rates have subsided in recent months, which has only somewhat helped take away some of the sting prospective buyers are experiencing with the deteriorating affordability conditions in many areas,” added Yun. “Household incomes may be rising and giving consumers assurance that now is a good time to buy, but these severe inventory shortages will likely continue to be a drag on sales potential the second half of the year.” Each offi ce is independently owned & operated 808-329-0021 74-5450 Makala Blvd., Suite 103 Kailua-Kona, HI 96740 Located in the Kona Commons Mall RB-17263 3 duplexes on 3 separate parcels of land, each parcel has 2 units. All 3 properties are sold together and currently occupied with solid well screened tenants. Lynn Rumbell, RB NAALEHU VILLAGE Rare commercial condominimum in Pualani Terrace! The combined o ce space is 2,500 SF for endless possibilites! Complex is well-maintained and fully landscaped! Walter Sinicki, RB KEALAKEKUA VILLAGE $469,000 MLS#601329 1 Unit/2 o ce spaces Once in a lifetime oceanfront tropical retreat! Located in a quiet private gated community & previously owned by a European Princess, this is a must see! Saul Brecher, RS $2,340,000 MLS#296668 2bd/2ba $539,000 MLS#607425 2bd/2ba Lovely well built home on quiet cul-de-sac in Discovery Harbour! Open concept living area, beautiful wood features. Huge covered lanai in a tropical setting. A must see! Lynn Rumbell, RB NAALEHU $319,500 MLS#609094 3bd/3ba Come home to island lifestyle in Pualani Estates and discover this amazing home! The perfect elevation with refreshing tropical breezes, your dream Hawaii home is here! Ken Anderson, RB KAILUA KONA Location, Location, Location & View, Views, Views! This beautiful home is perfect for the buyer who appreciates open space & privacy. 1 bedroom 1 bath Ohana too! Saul Brecher, RS WAIKOLOA VILLAGE $689,000 MLS#608678 3bd/3ba Designed by renowned Honoka‘a architect Aza Summers! This is a one of a kind home and set in one of the nicest neighborhoods in Hilo! Don’t miss out on this!!! Raleigh Luitjens, RS HILO $575,000 MLS#606177 3bd/2ba $569,900 MLS#609408 4bd/2.5ba KONA BALI KAI $900,000 MLS#608094 15bd/12ba KEALAKEKUA Top Floor, Absolute Oceanfront, Turnkey-Furnished! Watch surfers at Banyan Surf break, spinning dolphins, sunsets, turtles & more from your own private lanai! Walter Sinicki, RB For more Photos, Listings and Maps go to: www.Kona.Hawaiimoves.com


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