2017 Forecast: Sales up; A turning point for first-time buyers More millennials entering 4 BED/4BATH WHITE SANDS TERRACE Newer Custom Quality home – easy walk to White Sands Beach. 4Bed/4Bath w/ocean views. Downstairs separate entry. Boat Parking. Oversized Garage w/workshop. MLS#297010 • $799,900 12 West Hawaii Real Estate | February 1, 2017 their prime homebuying years, rising household formation, and continued job gains boosting overall demand are expected to be behind the slight increase in existing-home sales in 2017, according to a residential housing and economic forecast session at the 2016 Realtors Conference & Expo. Lawrence Yun, chief economist of the National Association of Realtors, presented his 2017 housing and and CEO of the Federal Reserve Bank of Atlanta, who discussed the economic conditions that he believes support what will be a “net positive” for the housing sector. Total existing-home sales finished 2016 at 5.45 million sales and surpassed 2015 (5.25 million) as the highest since 2006 (6.48 million) – the best year since 2006 (6.47 million). REDUCED NEW PRICE WHITE SANDS TERRACE Legal Ohana—5 Bed/4 Baths with 15' x 35' pool, walk to White Sands Beach. Owned Photovoltaic System. Well Maintained Vacation Rental. MLS #294944 • $958,000 SOLD OCEANFRONT ALII DRIVE 3 SIDE-BY-SIDE OCEANFRONT LOTS - Build 3 separate homes! Beautiful park-like setting. MLS #282351 • $2,900,000 KONA PLAZA #305 Downtown 2Bed/2Bath condo in the heart of Kona, Walk to shops,restaurants, beach & pier. Ocean views, Elevator, Secure parking. Vacation rentals - Pets MLS #299113 • $259,000 COMMERCIAL KAPA‘AU COMMERCIAL BUILDING & 2 HOMES REDUCED to SELL Highway Frontage Parcel Zoned CV-l0 plus two 2 Bed/l Bath Plantation Homes. MLS#280687 • $599,000 KONA WONDER VIEW Comfortable 2-story Home located in upper section of subd. 3Bed/2 Bath upstairs w/spacious lanai with some ocean views. 2 Bed/ l Bath Downstairs for guests. Recently painted exterior. Motivated. MLS#297399 • $459,000 Linda Bradley Realtor/Broker RB-15020 Certifi ed Residential Specialist 75-5905 Walua Road, Ste 9 Kailua-Kona, HI 96740 Linda@ElitePacifi c.com 808-896-1579 Serving Kona since 1985 economic forecast and was joined onstage by Dennis Lockhart, president IN ESCROW KONA PLAZA #113 Charming 2B/2B condo with no stairs - in heart of Kona. Featuring all tile fl oors, turnkey furnished, stainless steel appliances. Salt Water Pool. Ready for long term or vacation rental. MLS #602247 • $229,000 MODELS OPEN HOLUA KAI AT KEAUHOU Brand new resort homes by Brookfi eld Residential. Now offering 4 fl oor plans. Four homes completed for viewing. Quality fi nishes. Offi ce open daily 9AM-5PM. MLS #297457 • $899,000 In 2017, sales are forecast to grow roughly 2 percent to around 5.46 million, and then with a more prominent jump of 4 percent in 2018 (5.68 million). The national median existing home price is expected to rise to around 4 percent both this year and in 2017. In front of a packed room of thousands of Realtors and industry guests, Yun and Lockhart both commented that the housing market this year has been a mixed bag of positives and challenges. “The gradually expanding economy, multiple years of steady job creation and mortgage rates under 4 percent all contributed to sizeable interest in buying a home this year,” said Yun. “However, it’s evident that demand and sales slightly weakened over the summer as stubbornly low supply limited buyers’ choices, accelerated price growth and hindered some consumers’ belief that now is a good time to buy a home.” Lockhart remarked on current inventory levels impacting affordability. Citing limited land availability, shortages in construction labor and tight credit for homebuilders, Lockhart said these factors are contributing to the overall supply shortages for affordable housing. Looking to 2017, Yun thinks the tight supply and affordability issues affecting buyers in many markets will very slowly but surely start to abate. As housing starts steadily increase, both he and Lockhart are optimistic that housing demand will include leading-edge millennial households finally dipping their toes into the market at a growing rate. In NAR’s recently released 2016 Profile of Home Buyers and Sellers, the median age of first-time buyers was 32. According to Yun, while repaying student debt, shaky job prospects after the recession and marrying and having children later in life have delayed first-time buyers’ ability and willingness to buy, the wave of potential buyers entering their 30’s is increasing considerably in coming years. “NAR surveys from both current renters and recent buyers prove that there’s an overwhelmingly strong desire among the younger generation to own a home of their own,” said Yun. “The housing market over the next couple of years should get a big lift in demand from these new buyers. The one caveat is it’s essential that there’s enough new and existing supply at entry-level prices for them to reach the market.” Lockhart remarked, “The coming years of housing demand will be millennial-driven and will support the single-family sector.” Yun anticipates housing starts to jump 5.3 percent next year to 1.22 million. However, this is still under the 1.5 million new homes needed to make up for the shortfall in recent
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