November Real Estate Market Report
November sales of previously owned single-family homes jumped 47 percent, while the surge for condominiums was 103 percent above sales during the same month last year, according to the Honolulu Board of Realtors.
We have a great alignment of low interest rates, declining inventory, and tax breaks both for sellers and 1st time buyers. Last month, the federal government announced it would extend the stimulus program through April for first-time homebuyers, and add a credit up to $6,500 for qualifying repeat buyers. Under the program, purchase contracts must be signed by April 30 and close by June 30.
In November, there were 249 single-family homes sold compared with 170 a year earlier. The median price, which is a point at which half the sales were for more and half for less, was down 1 percent to $590,000 from $594,500.
Condo sales soared to 407 from 201 in the same period. The median price was $320,000, up 1 percent from $316,200.
November home sale volume, while higher than a year ago, was still well off the pace near the height of the market. In November 2004 and 2005, there were roughly 370 single-family homes and 620 condo sales before a significant decline in 2006.
Because the tax credit targeted first-time buyers, much of the increase was concentrated in more affordable areas of O'ahu's housing market. For condos, the biggest increases were in the Makiki-Mo'ili'ili and Waikíkí areas. There were also big surges in Ala Moana-Kaka'ako, 'Ewa Plain-Kapolei, Waipa- hu and Pearl City. For single-family homes, the biggest increase in sales was in Waipahu.
Economic research firm IHS Global Insight predicts that the added stimulus will mainly shift buyer demand from the second half of next year to the first half of next year.
(resources: Honolulu Board of Realtors, Honolulu Advertiser)