Summer is here, but is the “heat” still in the market?
As I write this article, I’m looking out my window at a torrential downpour and wondering, “aren’t we in summer?” And like the weather, the current real estate market has been SUPER interesting/confusing, as we see uncorrelated trends throughout all the stats. Let’s dive deeper into the stats to see exactly what is going on!
Condos prices continue to blaze
The biggest number that pops out is the record-high median condo price, hitting $534,000. That’s in-spite of the number of sales still at historic highs, and continuing the 4-month streak of over 600+ closed transactions. Thankfully, it seems the inventory of condos on-island has been keeping up, with 686 new listings coming on this past month, but it will remain to be seen if that inventory tightens down as the year goes on.
Median price of homes “falls”
There are tons of news stories pushing the conversation that median home prices finally fell from last month’s historic high price, possibly signaling a recession. As I see it, we need to pump the brakes on that quick judgment, as the stats also show that prices are up 12.4% over 2021 regardless. One, two, or even three months of stats is not enough to signal a economy-wide trend, especially since our little island’s new inventory fell month-over-month in June and trends usually indicate even less inventory coming on as the year ends.
The most encouraging stat for buyers
While it’s still definitely a Seller’s market, the most encouraging stat for buyer is seeing the “Percent of Original List Price Received” starting to roll back towards 100%. This stats shows how overbid homes are during the month, with the average home receiving 102% of its original asking price in June. This is probably due to a combination of rocky mortgage interest rates and Sellers pushing prices outside of Buyer’s comfort zones. The 20-offer days might be behind us, but I still expect at least a little offer competition when submitting.
End of Q2 2022!
Overall, we’ve had another interesting quarter in the real estate market and in our island lives! I’m interested to see how the rest of the year pans out, considering everything seems on the cusp and could go either way. If you’re thinking about Selling, don’t wait too long as buyers are starting to feel the outward pressures being applied. If you’re thinking about buying, I still strongly believe there are opportunities out there for everyone! Either way, being patient and having a good agent (me, of course) can set you up for a successful adventure!
Take care, and see you next month!
Nick
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