Page 20

REM_062216

Metro home prices maintain steadfast growth, Honolulu among nation’s most expensive markets Full Service Property Management For The Big Island Long Term Rentals: www.KCPMrentals.com Vacation Rentals: www.KonaCoastVacations.com Property Management 329-2140 Toll Free: 1-877-322-2407 Maximize your real estate investment, with professional property management services. 20 West Hawaii Real Estate | June 22, 2016 An uptick in sales activity amidst meager supply levels upheld the trend of unwavering price gains in an overwhelming majority of metro areas during the first quarter of the year, according to the latest quarterly report by the National Association of Realtors. The median existing single-family home price increased in 87 percent of measured markets, with 154 out of 178 metropolitan statistical areas (MSAs) showing gains based on closed sales in the first quarter compared with the first quarter of 2015. Twenty-four areas (13 percent) recorded lower median prices from a year earlier. There were more rising markets in the first quarter compared to the fourth quarter of 2015, when price gains were recorded in 81 percent of metro areas. Twenty-eight metro areas in the first quarter (16 percent) experienced double-digit increases – a slight decrease from the 30 metro areas in the fourth quarter of 2015; fifty-one metro areas (28 percent) experienced double-digit increases in the first quarter of last year. Lawrence Yun, NAR chief econmist, Purchase, Refi nance, and Reverse Mortgage Loan Options Mortgage Broker/Owner Hi - 224003 76-6225 Kuakini Hwy. C-106 Kailua-Kona, Hawaii 96740 PHONE: (808) 327-0404 Cell: (808) 960-3457 barbara@apexmortgagehawaii.com apexmortgagehawaii.com BARBARA A. WELSH Hi - 217406 Kona Real Estate Management Property management of long term rentals and home check services. A small but professional father-daughter run company that are both licensed brokers and treat your property like their own. 808-329-3121 www.konahomesandrentals.com Joseph A. Garcia BIC Christina Sotelo BA Best Choice in Construction Corp. We can handle all your New or Existing Home’s Needs CALL FOR A FREE ESTIMATE! Lic. BC 27527 Kailua-Kona, Hi 96740 Phone (808) 938-6374 says home prices chugged along at a robust pace in most metro areas during the first three months of 2016. “The solid run of sustained job creation and attractive mortgage rates below 4 percent spurred steady demand for home purchases in many local markets,” he said. “Unfortunately, sales were somewhat subdued by supply and demand imbalances and broadly rising prices above wage growth. As a result, the path to homeownership so far this year remains strenuous for a segment of prospective buyers in the most competitive areas.” The national median existing single family home price in the first quarter was $217,600, up 6.3 percent from the first quarter of 2015 ($204,700). The median price during the fourth quarter of 2015 increased 6.7 percent from the fourth quarter of 2014. Total existing-home sales, including single family and condo, rose 1.7 percent to a seasonally adjusted annual rate of 5.29 million in the first quarter from 5.20 million in the fourth quarter of 2015, and are 4.8 percent higher than the 5.05 million pace during the first quarter of 2015. “In spite of deficient supply levels, stock market volatility and the paltry economic growth seen so far this year, the housing market did show resilience and had its best first quarter of existing-sales since 2007 (5.66 million),” adds Yun. “The demand for buying is there, but unless the stock of new and existinghomes for sale increases significantly – especially in several markets in the West – the housing market will struggle to reach its full potential.” At the end of the first quarter, there were 1.98 million existing homes available for sale3, which was below the 2.01 million homes for sale at the end of the first quarter in 2015. The average supply during the first quarter was 4.3 months – down from 4.6 months a year ago. Despite a small increase in the national family median income ($68,431), climbing home prices and slightly higher mortgage rates caused affordability to decline in the first quarter compared to the first quarter of last year. To purchase a single-family home at the national median price, a buyer making a 5 percent down payment would need an income of $47,819, a 10 percent down payment would require an income of $45,302, and $40,268 would be needed for a 20 percent down payment. “Current homeowners in many metro areas – especially those who purchased a home immediately after the downturn – have enjoyed a sizeable boost in housing equity and household wealth in recent years,” adds Yun. “At a time of stagnant wage growth and mounting rent increases, the same cannot be said for renters. Their inability to reach the market because of affordability and supply restrictions is contributing to rising wealth inequality in the U.S.” The five most expensive housing markets in the first quarter were the San Jose, Calif., metro area, where the median existing single-family price was $970,000; San Francisco, $770,300; Honolulu, $721,400; Anaheim Santa Ana, Calif., $713,700; and San Diego, $554,300. The five lowest-cost metro areas in the first quarter were Cumberland, Md., $67,400; Youngstown-Warren- Boardman, Ohio, $77,500; Decatur, Ill., $83,300; Wichita Falls, Texas, $95,200, and Rockford, Ill., $95,800. Metro area condominium and cooperative prices – covering changes in 60 metro areas – showed the national median existing-condo price was $204,700 in the first quarter, up 5.8 percent from the first quarter of 2015 ($193,500). Forty-four metro areas (73 percent) showed gains in their median condo price from a year ago; 16 areas had declines. NAR President Tom Salomone, broker-owner of Real Estate II Inc. in Coral Springs, Florida, says buyer foot traffic has been strong throughout the spring. “Especially in the top job producing metro areas, Realtors are reporting a steady stream of interested NAR President Tom Salomone, broker-owner of Real Estate II Inc. in Coral Springs, Florida, says buyer foot traffic has been strong throughout the spring. “Especially in the top job producing metro areas, Realtors are reporting a steady stream of interested buyers either in the early stages of the home search or currently ready to make a purchase,” he said. westhawaiitoday.com More news, more savings, more often. 329-2644


REM_062216
To see the actual publication please follow the link above