Gary's Blog

Saturday, July 20, 2013

Dwindling Supplies = Rising Prices


Dwindling Supplies Continues Upward Trend in Maui Real Estate Market

Because of declining inventories, sales of single-family homes rose 10% to 485 units, with median prices jumping 20% to $542,000 in the first six months of 2013, according to data released by the Realtors Association of Maui.

Condo sales were not as robust, growing only four units, or 1%, in the January-to-June period.   Median prices moved up 6% to $372,500, compared to the same period in 2012.

If you would like to see the entire report from RAM, which breaks down the sales by district, please shoot me an e-mail. 

Oahu Home Median Price Nears All-time 2007 Peak
The Honolulu Board of Realtors says the median sales price for a single-family home on Oahu was $677,250 in June, about 1% below the market's peak price of $685,000 in June 2007.  It is also 9% higher than the same month last year.
The organization says the median price of a condo rose 11% from last year, to $330,000.


U.S. Home Prices up 12.2%

U.S. home prices jumped 12.2% from a year ago, the most in seven years.  Real estate data provider CoreLogic said Tuesday that home prices rose from a year ago in 48 states.  They fell only in Delaware and Alabama.
Prices rose 26% in Nevada to lead all states.  It was followed by California (20.2%), Arizona (16.9%), Hawaii (16.1%) and Oregon (15.5%).
CoreLogic also says prices rose 2.6% in May from April, the 15th straight month-over-month increase.
Prices are still 20% below the peak reached in April 2006, according to CoreLogic.
Sales of previously occupied homes topped the 5 million mark in May for the first time in 3.5 years.  And the proportion of those sales that were "distressed" was at the lowest level in more than four years for the second straight month.  Distressed homes sales include foreclosures and short sales.

National Good News

The U.S. housing recovery is strengthening.  Factories are fielding more orders.  And Americans' confidence in the economy has reached its highest point in 5.5 years.
The Conference Board said its consumer confidence index jumped this month to 84.1, the highest reading since January 2008.
Last month, U.S. employers added 195,000 jobs, better than the average of about 175,000 new jobs per month for the past year.
This positive sentiment is resulting in increased consumer spending, up 0.3% last month.
Consumers' confidence is closely watched, because their spending accounts for 70% of economic growth.
Homebuilder confidence is also soaring.  U.S. homebuilders are feeling more optimistic about their home sales prospects than they have in more than seven years.  The National Association of Home Builders/Wells Fargo builder sentiment index released Tuesday jumped to 57 this month from 51 in June.  It was the third consecutive monthly gain.  A reading above 50 indicates more builders view sales conditions as good, rather than poor.  The index hasn't been that high since January 2006.

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