I’ve got a quick market update for you today that covers the first quarter of 2019 here on the garden island.
Sales have slowed so far this year and the market is continuing to level off. When we go on the MLS and look at the list-to-sale price ratio, there are a few more discounts happening these days. Homes are selling a percentage point or two lower than they were, which is further indicative of the slowdown.
One of the curious things that we’re going to need to keep a closer eye on is our volume. The decrease in the number of transactions is somewhat related to our limited inventory. I keep waiting to see that inventory grow, but it just hasn’t happened yet. There are only 268 homes for sale on Kauai, along with 210 condos and 171 parcels of land. That gives us a total of 649 listings. That’s a pretty low figure for our market.
Another thing I’ve noticed is that the number of home sales is down by 58% from last year. The dollar volume of those sold homes is down a whopping 70% from last year. This is all the proof I need that the market is slowing down.
This slowdown could be a good thing for some. It might give buyers more motivation to be flexible when making offers. Another big benefit for buyers right now is interest rates. Mortgage interest rates are right around 4.28% for a conforming loan here in Hawaii. Jumbo loan rates are even lower. This is all good news for buyers, although the limited inventory might make things a little more tricky in the interim.
The bottom line is that the median price is up, the volume is way down, and we’ll continue to keep an eye on market prices for you as they change. Whether you’re in the market to buy or sell, we’ll help get the right information out to you so that you can make an informed decision.
If you have any questions about the real estate market or real estate in general, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.