Brandon Lau, Author at ChaneyBrooks Choice Advisors
June 2019 Oahu Real Estate Market Update

June 2019 Oahu Real Estate Market Update

OAHU HOUSING SALES DOWN, WHILE PRICES UP IN JUNE

Sales of single-family homes and condominiums on Oahu slowed in June according to resales figures released today by the Honolulu Board of REALTORS®. The analysis conducted by the Board using data collected from its computerized Multiple Listing Service (MLS) system show the following statistics:

Single-Family Home Resales

Number of Sales Median Sales Price
June 2019 327 $800,000
June 2018 365 $782,388 2.3%

Condominium Resales

Number of Sales Median Sales Price
June 2019 473 $432,500
June 2018  547 $420,000 3.0%

 

During June 2019, single-family home sales decreased by 10.4 percent and condominium sales decreased by 13.5 percent from the same month last year. The median prices paid increased modestly with singlefamily homes up by 2.3 percent to $800,000 and condos up by 3.0 percent to $432,500. While new listings for single-family homes declined by 8.9 percent from June 2018, overall inventory increased by 16.7 percent. The number of newly listed condos increased by 6.3 percent, as did overall inventory by 13.8 percent. According to the Days on Market indicator, the median days for single-family homes was 18 and 27 for condominiums.

“While sales volume in June may have declined from last year, the Oahu housing market remains very active and competitive,” said Jenny L. Brady, President of the Honolulu Board of REALTORS®. “Even with the increases in inventory, we’re seeing the majority of sold properties on the market for less than 30 days. Additionally, sellers who are working with REALTORS® are closing with median prices at 98.2 percent of the original list price for single-family homes and 97.2 percent for condos. REALTORS® have the knowledge and experience to position and prepare properties for optimal sales performance and to help navigate the complex process of selling a home.”

The information contained in this report is provided to the National Association of REALTORS® and the Hawaii State Department of Economic Development, Business and Tourism for its official reports. This report reflects information about resales of existing properties only and does not include new home sales. All of the MLS information is compiled from sales reported during the cited months; this data is known only after closing of escrow.

The public is encouraged to visit www.hicentral.com to see what’s happening in the housing market. Consumers have the ability to browse Oahu single-family home and condominium listings, available for sale and for rent, and to see a comprehensive guide of homes that will be open to visit this Sunday. All searches can be done by geographic location and/or price range, and hicentral.com provides useful information about buying and selling real estate in Hawaii.

Short-Term Vacation Rentals on Oahu

Short-Term Vacation Rentals on Oahu

With the increasing numbers of visitors to the island and low vacancy rates in hotels, there is a healthy demand for short-term rentals on Oahu. A short-term rental is a property which is being rented for less than 30 days. Visitors who use vacation rental hosting platforms such as Airbnb, Homeaway, or VRBO are looking for cheaper rates or a more local experience when vacationing on the island.

Recently Bill 89 was passed unanimously (9-0) by the Honolulu City Council which will allow permitting for an approximately 1,715 additional owner-occupied bed-and-breakfast rentals on Oahu.  This number adds to the current 816 legal short-term rentals on Oahu, but is a mere fraction of the 8,000 short-term rentals which are presumed to exist in the county at a given time.  An additional measure, Bill 85, was also passed (7-2) imposing a fine of $1,000 for a first time offense and a $10,000 for a repeat offender for illegal short-term rental operators.  Most of all legal short-term rentals exist within resort zoned areas such as Waikiki or Ko’Olina. The other transient vacation properties outside of resort zoned areas have non-confirming use certificates which owners will have to reapply for every two years. 

Hosting platforms such as Airbnb, Homeaway, or VRBO are also required to register and report on a monthly basis the names of the responsible persons for each listing, the address of each listing, the transient vacation tax number of the owner or operator and the length of stay for each listing.

Prior to the passing of these Bills the City had been in discussions with online vacation rental platforms to come up with a solution that allows legal short-term rentals to operate. The problem is that most of the units being offered are illegal because they are operating in residential areas where short-term rentals are not permitted. Though a prior proposal was to have an online rental platform such as Airbnb be a tax collection agent for the State, these platforms were not willing to identify who their hosts are, citing issues with privacy. 

Oahu has some of the most restrictive laws pertaining to short-term rentals, and permits issued for transient vacation and bed & breakfast units were stopped in 1989-1990. On this Honolulu City and County FAQ sheet on Transient Vacation Rentals and Bed & Breakfast Homes, there are answers to the most commonly asked questions that make it clear as far as what properties are permitted for short-term rental use. These properties have received what they call a Non Conforming Use certificate to be able to operate a short-term retnal. Here in this list of permitted Transient Vacation Rentals and Bed & Breakfast Homes on Oahu, you will find the limited number of properties that qualify for short-term use, many of them being in a resort zoned areas of the island such as Waikiki or Ko’Olina. The Office of Hawaiian Affairs has also created a map which locates these permitted short-term rental properties in Honolulu County on Oahu.

Similar to Oahu, Maui county has also created a list of condominiums which do not include resort zoned properties, who are already short-term in nature, and it provides information on those properties who can legally operate short-term rentals. This Maui County Short-Term Rental List can include those properties which may be grandfathered.

Though there is no easy solution to determine how to allow all owners of short-term rentals to operate, there is clearly a demand for vacation properties. As an investor of real estate, it would be wise to consider using a rental option that is legal, so that you can remain profitable regardless of which direction the lawmakers take. Should you require more information on how to invest in Oahu real estate please contact us.

May 2019 Oahu Real Estate Market Update

May 2019 Oahu Real Estate Market Update

OAHU SINGLE-FAMILY HOME SALES SPRING UP IN APRIL

Oahu condominium sales ticked upwards in May according to resales figures released today by the Honolulu Board of REALTORS®. The analysis conducted by the Board using data collected from its computerized Multiple Listing Service (MLS) system show the following statistics:

Single-Family Home Resales

Number of Sales Median Sales Price
May 2019 320 $770,000
May 2018 332 $778,000 -1.0%

Condominium Resales

Number of Sales Median Sales Price
May 2019 520 $417,500
May 2018  495 $430,000 -2.9%

 

During May 2019, condominium sales increased by 5.1 percent from May 2018, while single-family home sales decreased by 3.6 percent. Total sales volume in May increased by 1.6 percent, the first year-over-year gain since July 2018. The median prices paid for single-family homes decreased modestly by 1.0 percent to $770,000, while the median price for condos dipped by 2.9 percent to $417,500. New listings increased from the same time period last year for both single-family homes and condominiums by 5.2 percent and 7.1 percent, respectively. According to the Days on Market indicator, the median days for single-family homes was 21 and 27 for condominiums.

“The Oahu housing market is experiencing activity similar to that being seen nationally, especially in major metropolitan areas, with moderate shifts in both median prices and sales, along with increases in available inventory,” said Jenny L. Brady, President of the Honolulu Board of REALTORS®. “The 30- year fixed mortgage rate recently fell below four percent for the first time since January 2018, which may drive consumers to make home purchasing decisions as we move into the summer months.”

The information contained in this report is provided to the National Association of REALTORS® and the Hawaii State Department of Economic Development, Business and Tourism for its official reports. This report reflects information about resales of existing properties only and does not include new home sales. All of the MLS information is compiled from sales reported during the cited months; this data is known only after closing of escrow.

The public is encouraged to visit www.hicentral.com to see what’s happening in the housing market. Consumers have the ability to browse Oahu single-family home and condominium listings, available for sale and for rent, and to see a comprehensive guide of homes that will be open to visit this Sunday. All searches can be done by geographic location and/or price range, and hicentral.com provides useful information about buying and selling real estate in Hawaii.

Hale Ka Lae – Flex Units

Hale Ka Lae – Flex Units

We recently had an article about Avalon Group’s plans to convert over 200 rental units to condominiums. Hale Ka Lae’s 269-unit complex is located at 7000 Hawaii Kai Drive and was originally built in 2016 to help fill demand for more rental housing.

One key feature at Hale Ka Lae are the “Flex Units” with lock-out suites. These lockout units have separate entrances giving the owner the option to occupy the entire unit or rent out a portion of it, almost like owning two condos for the price of one!

Prices start at:

$559,000 

for 2-bedroom units

$635,000

for 3-bedroom units

Get in touch with us today to learn more about this unique opportunity to own a contemporary condo outside of the hustle and bustle of the city.

April 2019 Oahu Real Estate Market Update

April 2019 Oahu Real Estate Market Update

OAHU SINGLE-FAMILY HOME SALES SPRING UP IN APRIL

Single-family homes ticked up in April according to resales figures released today by the Honolulu Board of REALTORS®. The analysis conducted by the Board using data collected from its computerized Multiple Listing Service (MLS) system show the following statistics:

Single-Family Home Resales

Number of Sales Median Sales Price
April 2019 318 $766,750
April 2018 289 $790,000 -2.9%

Condominium Resales

Number of Sales Median Sales Price
April 2019 476 $418,950
April 2018  547 $416,000 +0.7%

During April 2019, the sales of single-family homes increased by 10.0 percent, while condominium sales decreased by 13.0 percent from April 2018. The median price paid for single-family homes decreased by 2.9 percent from the same month last year to $766,750, while the median price paid for condos increased to $418,950, a 0.7 percent increase from last April. Active listings increased year-over-year for both single-family homes and condominiums with gains of 30.6 percent and 17.6 percent, respectively. According to the Days on Market indicator, the median days for single-family homes was 25 and 29 for condominiums.

“After a slow first quarter that saw a decline in housing sales, but steady median prices, the Oahu market experienced positive activity in April with a 10 percent increase in single-family home sales,” said Jenny L. Brady, President of the Honolulu Board of REALTORS®. “Low mortgage interest rates, coupled with more inventory on the market compared to last year, presented better opportunities for potential homebuyers and spurred more of them to buy. While condo sales were down comparatively, there was still a healthy number of condo units sold in April.”

The information contained in this report is provided to the National Association of REALTORS® and the Hawaii State Department of Economic Development, Business and Tourism for its official reports. This report reflects information about resales of existing properties only and does not include new home sales. All of the MLS information is compiled from sales reported during the cited months; this data is known only after closing of escrow. The public is encouraged to visit www.hicentral.com to see what’s happening in the housing market. Consumers have the ability to browse Oahu single-family home and condominium listings, available for sale and for rent, and to see a comprehensive guide of homes that will be open to visit this Sunday. All searches can be done by geographic location and/or price range, and hicentral.com provides useful information about buying and selling real estate in Hawaii.

1 2 3 64