Low Inventory Pushes Home Prices Higher

Low inventory.jpg

According to CoreLogic’s latest Home Price Index, prices appreciated by 6.9% year-over-year from December 2016 to December 2017 on a national level. This marks the fifth month in a row with at least a 6.9% increase.

Dr. Frank Nothaft, Chief Economist for CoreLogic, gave insight into the reason behind the large appreciation,

“The number of homes for sale has remained very low. Job growth lowered the unemployment rate to 4.1 percent by year’s end, the lowest level in 17 years. Rising income and consumer confidence has increased the number of prospective homebuyers. The net result of rising demand and limited for-sale inventory is a continued appreciation in home prices.”

This is great news for homeowners who have gained nearly $15,000 in equity (on average) in their homes over the last year! Those homeowners who had been on the fence as to whether or not to sell will be pleasantly surprised to find out that they now have an even larger profit to help cover a down payment on their dream homes.

As we near the traditionally busy spring buyers season, there is still hope for buyers as mortgage rates remain low compared to recent decades. The report also predicted that home price appreciation will slow slightly, rising by 4.3% by this time next year.

Bottom Line

If you are looking to enter the housing market, as either a buyer or a seller, let’s get together to go over exactly what’s going on in our neighborhood and discuss your options!

Amanda K. Burns

Amanda understands what draws people to the dream of an island lifestyle and what it truly takes to make those dreams a reality. She moved to Hawaii Island from Fairbanks, Alaska in 2016.

Amanda gained 12 years experience in sales and marketing focusing on long term customer service and relationships during her time in Alaska. Wanting to achieve a greater level of work/life balance, and create meaningful experiences for her children through new adventures, Amanda and her husband relocated to the Big Island. Starting her real estate career in the vacation sector, Amanda developed a passion for helping customers with their island experience. She joins LUVA Real Estate as an agent specializing in the North and South Kohala districts.

In her spare time, Amanda enjoys the harmony of toes in the sand and salty crashing waves. She loves scuba diving with her husband, cooking for friends and family, gardening and making family memories through island adventures like zip-lining, fishing, snorkeling, and hiking. Grateful for an amazing group of neighbors and friends who made her transition successful, Amanda strives to makes sure that local families, new residents and vacation home investors fulfill their ultimate dream of an island lifestyle through exceptional service filled with the spirit of Aloha.