July housing statistics from the Honolulu Board of Realtors show a summer-long rise in the median price paid for single-family homes and condominiums on Oahu. Although sales volume dipped slightly year-over-year, with inventory and mortgage interest rates both near historic lows, the market remains very healthy.
“The increase in the median and average sales prices of homes on Oahu are evidence of continual strong demand in the re-sale market,” says Kalama Kim, principal broker and 2016 president of the Honolulu Board of Realtors.
A recent report from the Hawaii Tourism Authority, citing tourism at an all-time high is additional good news, as these figures also are indicators of the state’s economic health.
“According to the Department of Business, Economic Development and Tourism, Hawaii’s labor market continues to improve through May 2016, unemployment continues to be low at 3.1%, which is the third lowest in the country. More jobs and more people employed means more potential buyers in the real estate market,” adds Kim. “Additionally, mortgage interest rates remain below 4%.”
Other signs the housing market continues to thrive include a decrease in the number of new listings while homes are selling faster. There were 428 new single-family home listings on the market in July, compared to 486 a year ago — an 11.9% decrease. Additionally, the median number of days on the market — the time it takes before a fully-executed contract is used to open escrow — indicates sales are brisk. Year-over-year stats indicate DOM for single-family homes remains at 16, and DOM for condominiums has dropped 25% — from 24 days a year ago to 18 days last month.
The number of sales that closed last month dipped from July 2015. Single-family home sales were down 4.5%, from 337 this time last year, to 322 in July. Year-to-date, however, sales volume figures are still ahead of last year’s pace by 6.4%.
Condominium sales follow a similar track. When comparing year-over-year, there were 501 sales in July of 2015, 11.4% higher than last month’s sales volume, which was 444. Again, the year-to-date figures still show an 8.9% increase in sales when comparing total sales from first seven months.
The median price paid for a single-family home in July was up 5.1% compared to July 2015 — to $746,000 from $710,000. This marks the 11th consecutive month where prices topped $700,000, which they have done for 13 out of the past 14 months.
The median price of a condominium on Oahu is also up — 14.3% — to $400,000. This is the second consecutive month where the MSP of a condo made or broke the $400,000 benchmark.
According to the National Association of Realtors, 35% of homebuyers during 2015 were Millennials (up 3% from the year before).
“Many homebuyers start their search for a home well before they hire a real estate professional. The sales professional’s knowledge of market, inventory and the buying process is essential to a buyer,” says Kim. “Hiring a realtor early in the process will allow the buyer to be well-equipped to find the right home and be prepared to beat out the competition for that home.”
This month’s hot markets are those neighborhoods where demand was high enough and where sellers accepted an offer and opened escrow in less than 15 days on the market. There is still time to get in on the summer selling bonanza!
Single-family home hot neighborhoods:
Aina Haina — Kuliouou: 9 days
Downtown — Nuuanu: 9 days
Ewa Plain: 12 days
Kailua — Waimanalo: 14 days
Kalihi — Palama: 7 days
Makakilo: 11 days
Mililani: 9 days
Pearl City — Aiea: 11 days
Ewa Plain: 10 days
Kaneohe: 13 days
Kapahulu— Diamond Head: 13 days
Mililani: 9 days
Moanalua – Salt Lake: 14 days
Pearl City – Aiea: 13 days
Waipahu: 8 days
Source: Honolulu Board of REALTORS® , compiled from MLS data. June 2016