West Hawaii Real Estate | August 17, 2018 11
Metro home prices climb to new all-time high; rise 5.3 percent in second quarter
Amidst staggeringly low
KONA CROSSROADS SHOPPING CENTER
75-1027 Henry Street, Kailua-Kona, HI 96740
ONLY 2 SPACES AVAILABLE FOR OFFICE OR RETAIL
• 75 square foot retail
• 1,800 square foot
offi ce or retail
This high traffic center anchored by Safeway is in Kailua-Kona Town and has lots of free
parking. With easy access to both Palani Road and Queen Ka‘ahumanu Highway this
clean and thriving center is the perfect spot for your business to increase sales volume.
Debbie Parmley (B) CCIM
Vice President | Hawaii
License No. RB-21953
Leasing Services – Island of Hawaii
Direct +1 808 987 7722
Main +1 808 524 2666
debbie.parmley@colliers.com
For details on all listings visit, www.DebbieParmley.com
inventory levels in much of
the country during the second
quarter, existing-homes
sales cooled and home prices maintained
their robust level of appreciation,
according to the latest quarterly
report by the National Association of
Realtors. Last quarter, the San Francisco
metro area joined the San Jose
metro area for having a median sales
price above $1 million.
The national median existing
single-family home price in the second
quarter was $269,000, which is
up 5.3 percent from the second quarter
of 2017 ($255,400) and surpasses
last year’s second quarter as the new
peak. The median sales price during
this year’s first quarter increased 5.7
percent from the first quarter of 2017.
Single-family home prices last quarter
increased in 90 percent of measured
markets, with 161 out of 178
metropolitan statistical areas (MSAs)
showing sales price gains in the second
quarter compared to a year ago.
Twenty-four metro areas (13 percent)
experienced double-digit increases,
down from 30 percent in this year’s
first quarter.
Lawrence Yun, NAR chief economist,
says this year’s spring buying season
did not meet expectations, despite
very strong demand. “The ongoing
supply crunch affecting much of the
country worsened for most of the second
quarter, as the growing number
of interested buyers in many markets
overwhelmed what was already a
meager level of available listings,” he
said. “With not enough homes for sale,
multiple bids caused prices to rise
briskly and further out of the reach of
some prospective buyers.”
Total existing-home sales, including
single family and condos, decreased
1.7 percent to a seasonally
adjusted annual rate of 5.41 million in
the second quarter from 5.51 million
in the first quarter, and are 2.4 percent
lower than the 5.55 million pace
during the second quarter of 2017.
“Solid economic growth, a healthy
labor market and the large millennial
population should be driving home
sales much higher,” said Yun. “As
long as economic conditions maintain
current levels, there’s still a chance
for sales to break out this year. However,
with mortgage rates trending
higher, it will only happen if supply
levels improve enough to cool the
speedy price growth in a majority of
the country.”
At the end of the second quarter,
there were 1.95 million existing
homes available for sale, which was
0.5 percent above the 1.94 million
homes for sale at the end of the
second quarter in 2017. The average
supply during the second quarter was
4.1 months – down from 4.2 months
in the second quarter of last year.
The national family median
income rose to $75,106 in the second
quarter, but overall affordability
decreased from a year ago because
of higher mortgage rates and 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
$64,239, a 10 percent down payment
would require an income of $60,858,
and $54,096 would be needed for a
20 percent down payment.
“The unaffordable conditions in
many of the largest metro areas –
especially in the West – continues
to be a growing concern for many
middle-class households aspiring to
buy a home,” said Yun. “Homebuilders,
facing higher costs and labor
shortages, are simply not producing
enough affordable homes to satisfy
demand. Local governments need to
acknowledge this glaring issue and
ease some of the zoning laws, permitting
processes and regulations that
are slowing construction.”
The five most expensive housing
markets in the second quarter were the
San Jose, California metro area, where
the median existing single-family price
was $1,405,000; San Francisco-Oakland
Hayward, California, $1,070,000;
Anaheim-Santa Ana-Irvine, California,
$830,000; urban Honolulu, $795,200;
and San Diego-Carlsbad, $645,000.
The five lowest-cost metro areas in
the second quarter were Youngstown-
Warren-Boardman, Ohio, $94,400;
Cumberland, Maryland, $94,900;
Decatur, Illinois, $96,900; Elmira, New
York, $106,300; and Erie, Pennsylvania,
at $121,700.
Metro area condominium and
cooperative prices – covering changes
in 61 metro areas – showed the
national median existing-condo price
was $248,200 in the second quarter,
up 3.6 percent from the second quarter
of 2017 ($239,600). Ninety percent
of metro areas showed gains in
median condo price from a year ago.
Regional breakdown
Total existing-home sales in the
Northeast were at an annual rate
of 683,000 (unchanged from the
first quarter of 2018) and down 8.9
percent from a year ago. The median
existing single-family home price in
the Northeast was $288,900 in the
second quarter, up 2.3 percent from a
year ago.
In the Midwest, existing-home
sales rose 1.6 percent in the second
quarter but are 2.8 percent below a
year ago. The median existing singlefamily
home price in the Midwest
grew 3.5 percent to $210,600 in the
second quarter from the same quarter
a year ago.
Existing-home sales in the South
declined 2.7 percent in the second
quarter but are 0.6 percent higher
than the second quarter of 2017. The
median existing single-family home
price in the South was $238,500 in the
second quarter, 4.0 percent above a
year earlier.
In the West, existing-home sales
in the second quarter decreased 4.1
percent and are 3.6 percent below
a year ago. The median existing
single-family home price in the West
increased 8.3 percent to $403,300 in
the second quarter from the second
quarter of 2017.
link
/www.DebbieParmley.com
