Prices are leveling . . . for real!
February 12, 2006
Only a month ago I commented on how some Realtors were saying prices are leveling off and others said no way. Well, if you're in the market for a house, here's some good news for you: Prices are, no matter what anyone tells you, leveling off.
We are seeing more "price reductions" in the listings that ever before, and that means folks who felt that prices were still going up with no end in sight listed their properties at the up-end of the price range. At the same time, the inventory of homes for sale is bigger now than it has been for a while. Those who went for top dollar when listing their properties are now forced to drop the prices if they wish to be competitive with the prevailing market, and they are doing just that. We know of several homes now on the market that have had two or more price reductions, and some of them significant!
When there are more properties to choose from, buyers can be more selective, plus buyers are now actually able to come in with an offer of less-than-asking price. This has not been the case for a long time.
Up until very recently, most listing Realtors would tell buyers not to even bother with an offer of less than the asking price, and many homes sold for more than the asking price.
The really good part is that there is now an inventory of affordable homes again, those in the $300-400K range, with even quite a few listings down to the mid 200's.
Interestingly, the upscale homes in the $500K-up range (as long as they are worth the money) are selling more easily than the cheaper ones. Supply and demand.
Happy home-shopping!
The Big Island is gettting crowded. Traffic is becoming a problem. Long lines everywhere are starting to be the way of life here. For those of us who remember the simpler times here, it is sad. But we can all make it work if we will always remember to
Live Aloha!

Mahalo for "listening."
Skip Thomsen & Ohana
Updated 1/20/2006