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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.

March 2019 Oahu Real Estate Market Update

March 2019 Oahu Real Estate Market Update

OAHU HOUSING SALES DOWN IN MARCH WHILE NEW LISTINGS INCREASE —

Honolulu’s housing market ended March with a moderate decrease in sales volume, 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
March 2019 276 $782,500
March 2018 305 $760,000 3%

Condominium Resales

Number of Sales Median Sales Price
March 2019 467 $429,000
March 2018  485 $435,000 –1.5%

During March 2019, the sales of single-family homes declined by 9.5 percent, while condominium sales decreased by 3.7 percent from March 2018. The median price paid for single-family homes increased by 3.0 percent from the same month last year to $782,500, while the median price paid for condos decreased to $429,000, a 1.4 percent drop from last March’s record-setting median high of $435,000. New listings ended in positive territory with a 12.8 percent and 3.6 percent increase in newly listed single-family homes and condominiums, respectively. Total active listings of single-family homes increased by 33.6 percent and condominiums were up by 23.3 percent over the same period last year. According to the Days on Market indicator, the median days for single-family homes was 24 and 22 for condominiums.

“Oahu’s housing market remains healthy as the spring season begins, and there are favorable opportunities present,” said Jenny L. Brady president of the Honolulu Board of REALTORS®. “Inventory levels have been rising steadily, offering more options at all price ranges. That, coupled with the recent decline in mortgage rates creates opportune circumstances for buyers. Partnering with a licensed REALTOR® is a great first step to ease the transition from browsing to buying.”

February 2019 Oahu Real Estate Market Update

February 2019 Oahu Real Estate Market Update

OAHU HOUSING MEDIAN PRICES HOLD STEADY IN FEBRUARY —

Oahu’s sales prices for single-family homes and condominiums experienced small increases in February 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
February 2019  208 $789,000
February 2018 217 $772,500 2.1%

Condominium Resales

Number of Sales Median Sales Price
February 2019 321 $415,000
February 2018  385 $409,00 1.5%

During February 2019, the median price paid for single-family homes increased by 2.1 percent from the same month last year to $789,000. The median price paid for condos also increased to $415,000, up by 1.5 percent. The sales of single-family homes declined by 4.1 percent, while condominiums sales decreased by 16.6 percent from February 2018. Active listings of single-family homes increased by 41.6 percent, while condominiums increased by 30.9 percent over last February. According to the Days on Market indicator, the median days for both single-family homes and condominiums was 25 days.

“We continued to see slower sales in Oahu’s housing market in February, but at higher prices with modest increases for both single-family homes and condominiums,” said Jenny L. Brady president of the Honolulu Board of REALTORS®. “We’re also seeing double digit increases in active listings. Steady sales volume, moderate price increases, and more inventory across all price ranges are all positive indications of a healthy real estate market.”

2019 Oahu Real Estate Market Update

2019 Oahu Real Estate Market Update

Overall, the Hawaii real estate market has had a very good run from the days of the Economic Recovery Act of 2008, which implemented that $7,500 first time homebuyer tax credit, to the all time highs of 2018. We have seen more than just a recovery. We have seen one of our longest periods of improvement with respect to housing prices.

Statewide Trend

For the single family market we have seen the number of sales increasing since 2009 but then tapering off in 2018, with fewer sales overall. Being that condominiums are of a more affordable housing category, we didn’t see a decrease in the total number of sales overall in 2018. However, we did see a similar decline in the later half of 2018, which means that the slowdown occurring in the single family market has now moved to the condo market.

Changes On Oahu

Oahu in particular is experiencing a similar staircase-like pattern of growth as we have seen over the past 33 years. There is also a healthy cycle of sales increases and decreases every 7 to 10 years. One key trend that occurs is when a change in the number of sales precedes a change in price. This has happened in every cycle and is also happening at present. The decrease in number of sales in 2018 is a likely signal that we are starting to have a lateral move in prices.

Buyer Demographic

Part of understanding the market is evaluating the demographic landscape of who our buyers are. It is interesting to note that 2018 had witnessed an increase in offshore buyers from areas such Japan, California, Canada, and Korea. On the other hand, there was a decrease in the number of local buyers in the same regions of the island. As usual, Central, West and Windward Oahu, had a strong percentage of owner-occupant buyers, whereas in North Shore, Metro and East Honolulu, there was a higher percentage of investors in the mix.

Luxury Sales

When looking at the most active neighborhoods for single family luxury home sales in 2018, the usual suspects of Kahala, Diamond Head and Kailua Beachside topped the list. Oahu also still dominates the single family luxury market in overall sales. Not surprisingly, Kakaako, Ala Moana and Waikiki are the most prominent neighborhoods for luxury condominium sales. Unlike the rest of the market, luxury properties peaked in sales in 2017 and had a slow 2018. This is not unusual in our cycle, to see the luxury market lead the way of change.

Rental Market

There have also been changes to average rental rates of residential real estate, with some regions of Oahu showing increases in average rents, while others are showing slight decreases. This is to be expected in a changing market. When you have softening sales you typically have a softening of rental rates as well.

Interest Rates

The silver lining to our shifting market is that interest rates have not gone up as quickly as anticipated. In fact, rates are still in the mid 4% range for a 30 year fixed loan. It is anticipated that there may not be much movement for the next several months, but rates could go up to possibly 5% by the end of the year. For higher end homebuyers, it’s good to know that jumbo rates are actually lower than conventional 30 year fixed mortgages.

2019 Forecast

Residential Real Estate in Hawai‘i has seen some leveling off as we depart from the tighter inventory of 2018 to an increase in housing availability in 2019. Sales will perform at a slower pace and number in 2019 than in 2018 with adjustments in price reflecting a more lateral move in the market. If you are a homebuyer you can be more creative with your offers. As a homeseller, you’ll have to work harder at attracting the right buyer, and will have to keep your price attractive.

January 2019 Oahu Real Estate Market Update

January 2019 Oahu Real Estate Market Update

OAHU HOUSING MARKET STARTS YEAR WITH INCREASED INVENTORY LEVELS

HONOLULU (Feb. 6, 2019) — Oahu’s housing market experienced welcomed increases of inventory for both single-family homes and condominiums in January 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
January 2019  246 $767,500
January 2018 252 $772,000 0.6%

Condominium Resales

Number of Sales Median Sales Price
January 2019 326 $399,000
January 2018  374 $430,00 -7.2.%

During January 2019, the median price paid for single-family homes decreased slightly by 0.6 percent from the same month last year to $767,500. The median price paid for condos decreased to $399,000, down 7.2 percent from last January’s high of $430,000. The sales of single-family homes declined by 2.4 percent, while condominiums sales decreased by 12.8 percent from January 2018. New listings of singlefamily homes increased by 21.8 percent, while condominiums increased by 18.8 percent over last January. According to the Days on Market indicator, the median days for both single-family homes and condominiums was 27 days.

“We started 2019 with very healthy increases in new listings for both single-family homes and condominiums, adding to the inventory available to potential buyers,” said Jenny L. Brady, 2019 president of the Honolulu Board of REALTORS®. “In recent years, this volume of listing activity would have been more typical during the spring and summer months, so buyers have more options to consider earlier in the year. Conditions point towards a balanced market for both buyers and sellers.”

October 2018 Oahu Real Estate Market Update

October 2018 Oahu Real Estate Market Update

OAHU HOUSING SALES DROP, WHILE MEDIAN PRICES HOLD STEADY IN OCTOBER

HONOLULU (Nov. 6, 2018) — Sales of single-family homes and condominiums slowed in October 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, offer the following statistics:

Single-Family Home Resales

Number of Sales Median Sales Price
October 2018  309 $800,000
October 2017 355 $752,00 +6.4%

Condominium Resales

Number of Sales Median Sales Price
October 2018 443 $390,000
October 2017 489 $397,500 -1.9%

The sales of 309 single-family homes and 443 condominiums represent decreases of 13 percent and 9.4 percent, respectively, compared to October 2017. The median price paid for a single-family home increased by 6.4 percent to $800,000, while the median price for a condominium decreased by 1.9 percent to $390,000. According to the Days on Market indicator, the median days for single-family homes was 29 and 25 days for condominiums.

“While sales of residential properties slowed, the median prices remained relatively steady in October, considering the records set earlier this year,” said Darryl Macha, president of the Honolulu Board of REALTORS®. “The inventory of homes and condominiums available for sale has been rising, providing more options for potential homebuyers and leading to an increase in the days on market. Oahu’s housing market continues to be a stable environment for both buyers and sellers.”