Buyers and sellers poised to take advantage of the island housing market: The island real estate market finally bottomed out in the third quarter of 2024 and then saw a 31.2% year over year gain in sales of single and multi-family homes in last year’s fourth quarter. This ends a nearly 2 ½ year decline in sales that followed a record 9-year climb 2012-2021. This year 2025, based on continued steady economic growth, steady job growth and low unemployment, and a modest decline in mortgage rates later this year and next, island wide sales are expected to see a slow but steady recovery. And, if past long-term trends are any indication, the island market should see sales gains and price appreciation continue over the next 5-7 years.
Island Homes Prices hold steady: Last year, despite the fourth quarter uptick, total island wide sales of single and multi-family homes declined 6.0% compared to the prior year. Nonetheless, during this time the average and median price of homes on the island held steady at $2.2M and $1.6M respectively. Average days on market increased by just over 1-month to 116 days. The inventory of homes for sale however remains very low. So, in effect the market is roughly in balance with low demand and low inventory and, as a result, both buyers and sellers have an opportunity to get a good deal.
A Remarkable 10-year Growth Rate in Island Property Values: Overall, average and median prices of homes sold on the island held steady last year and top off the remarkable investment gains of island homeowners over the past 10-years (2014-2023) – specifically, the 10-year island wide price appreciation index, as calculated by the island listing service Linkmv, shows a compound annual growth rate of 9.3% per annum. And is why home buyers see the island as one of the best low risk investments available.
So, if you’re considering selling (or buying), now may be the perfect time to enter the market. Please call me to discuss your options and any questions you might have about the market, or to receive a no cost, no obligation market analysis of your property. Thank you for your time and consideration! Feel free to contact me with any of your real estate questions. I am always here to help.
