Happy New Year! I’m going to sound like a spoiled kid, but I can’t wrap my head around this fact: the 2017 Punahou graduating class was two when I graduated high school! I was a senior in High School when Dallas Cowboys running back Ezekiel Elliot started Kindergarten…WHAT!?! I can’t believe that it’s 2017 already, and I can’t believe what a year 2016 was! Let’s recap some stats!
The local real estate market ended 2016 with a BANG! All stats moved in positive directions, including numbers of sales, median price, and days on market. Number of sales was particularly spectacular with gains of ~15% over 2016 in the SF housing market and ~24% in condos. That’s an incredible gain, and probably due to Buyers expediting their purchases amid potential interest rate rises. That mixed with an uncertain future with a new President pushed Buyers to make uncharacteristic decisions compared to past winters.
As for 2016 as a whole, volume was up ~12% over last year, totaling a little over 5.1 billion dollars. Single-family homes saw a good annual return at 5.0% exactly, while condos jumped 8.3% over the year. Disregarding sensational media headlines, the real estate market was a good investment in 2016 and looks to continue this pace through 2017.
Speaking of 2017, what do we have to look forward to? A bunch of factors are going to dictate the speed that 2017 moves, most notably the new President Trump and interest rates. The fed has already alluded to multiple hikes to the short-term interest rates, which may lead to higher mortgage rates for consumers. That all depends on banks and consumer confidence, which may be affected by the new President’s policies and actions. Locally, I don’t forsee too much slowing in growth, as long as inventory numbers remain as low as they have been. It’s going to take a big boost in inventory to create the kind of effect that Buyers are hoping to see.
So what does that mean for Buyers and Sellers moving forward? For Buyers, it looks like 2017 is going to be just as competitive as 2016, while Sellers will continue to enjoy a favorable overall market. That’s not to say that either side will be easy or hard, but it is going to take good knowledge and experience to accomplish certain goals. Hopefully, if you’re reading this and in the market to buy or sell, you trust me to be that person to help!
Personally and professionally, I’m looking forward to 2017 and what it has to offer! I hope you have an amazing year, and I hope that we get to hang out or catch up! If you need anything this year, you know where to find me!
ALOHA!
Nick
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