For much of the country, the first quarter of 2019 provided several disruptive weather patterns that contributed to less foot traffic toward potential home sales. Coupled with low affordability, higher prices and an inventory situation in its infancy of recovering from record lows – not to mention several more days of wintry weather in April – slower sales persisted across most residential real estate markets. However, buyers are beginning to return in force this spring. For well-priced homes in desirable locations, competition is fierce.
New Listings decreased 8.7 percent for Single Family homes but increased
14.4 percent for Condominium homes. Pending Sales increased 24.2 percent for Single Family homes but decreased 4.8 percent for Condominium homes. Inventory decreased 11.8 percent for Single Family homes and 16.1 percent for Condominium homes.
Median Sales Price increased 13.0 percent to $819,500 for Single Family homes but decreased 13.1 percent to $440,000 for Condominium homes. Days on Market decreased 22.3 percent for Single Family homes and 12.1 percent for Condominium homes. Months Supply of Inventory decreased
10.3 percent for Single Family homes and 8.9 percent for Condominium homes.
Although hiring and wage gains have been below expectations, the national unemployment rate held firm at 3.8 percent. A historically low unemployment rate can provide reassurance to wary consumers. But in order for sales to increase on a grand scale, buyers will need more spending power, or sellers will need to reduce prices to land where buyers are most active. Neither situation is likely to occur in 2019, and yet inventory is straining to keep pace in the most competitive price ranges.
*Information provided by the Realtors Association of Maui