Oahu Home Prices Fall but Sales Increase, Hawaii Kai Follows the Trend
For a second consecutive month, there has been a rise in the number of previously owned O'ahu single-family homes sold, building on what could be an early sign of an expected lengthy market recovery.
There were 265 sales in July, up 5.6 percent from 251 sales in the same month last year, according to the Honolulu Board of Realtors. The median price, however, still was lower — declining 4 percent to $595,000 from $620,000 in the same period a year ago.
In O'ahu's condominium market, which often lags trends in the single-family home market, the number of sales and the median price both were lower last month. This year through July, the median condo price is down 7 percent, and sales are down 32.3 percent.
As explained in an article in the Honolulu Advertiser, "Part of what is helping keep median prices from falling drastically like they have in many Mainland cities is relatively limited new-home development on O'ahu and a relatively tight inventory of homes for sale.
"Last month, there were 1,653 single-family homes on the market. That was the lowest level for any July since 2005 near the peak of the market when inventory was at 958. Inventory in July 2008 was 2,087 homes, and ranged between 1,700 and 1,928 during the first six months of this year.
"If no new homes were added to the market, it would take 6.5 months to sell the present inventory, which is down from 9 months a year earlier, 7.6 months in June and a high for any month this year of 15.8 months in February."
Harvey Shapiro, research economist for the trade association of O'ahu real estate agents, said it's still hard to clearly predict whether the higher demand of the past two months will be sustained.
Sandra "Sam" Bangerter, president of the Honolulu Board of Realtors and co-owner and principal broker of RE/MAX Kai Lani in Kailua, said the uptick in sales and a median price that was at its highest since March for single-family homes "may be indicating that we're already past the bottom."
The affects of Hawaii's economic challenges are the big unknown in the modest recovery seen. State workers are facing layoffs and wage cuts as the state tries to recover its operating shortfall, and foreclosures throughout Hawaii continue to rise.
Hawaii Kai, because of its location and homogenous homeowner base, has not seen the steep drops in prices evident in other island locations. "We're clearly in a buyer's market, but the inventory hasn't expanded," Shapiro said.
Contact me for a complete analysis of the Hawaii Kai real estate market.
Barbara Abe, Realtor
808-226-2537
barbara@barbarashawaii.com