Through the Roof! Oahu Housing Prices Soar
The median sales price for both single-family homes and condominiums set all-time highs for June, as reported by The Honolulu Board of REALTORS®. Year-over-year, single-family homes increased by 8.6% to $760,000, and the price paid for condominiums jumped 19.6%.
“Multiple offers competing for a single listing drives prices up,” says Kalama Kim, principal broker and 2016 president of the Honolulu Board of REALTORS®. “The demand for single-family homes was especially high in June with the median days on market setting a record pace at only 14 days.”
Like Kim, I’m advising buyers to not get frustrated but rather, to widen their search for housing best meeting their needs and budget.
“If buyers find a home they are interested in purchasing, they have a better chance of beating out the competition by making their strongest offer first,” he says. “That means putting in the highest price they are willing to pay, shortening their review timelines, adding additional down payment funds in event the property does not appraise, or offering to pay for those transaction expenses usually paid by the seller. Buyers should consult with their Realtor regarding these factors to ensure it is in their best interest, as every situation is different.”
Although the number of new single-family listings increased, the total number of active listings and months of inventory remaining decreased — leaving the net supply of homes depleted, and keeping demand high.
Record prices did not discourage buyers from snapping up properties at a record pace. The median days on market for a single-family home at 14 days, and for a condo at 20 days, is 22.2% and 9.1% faster, respectively, than last summer’s pace.
Single-family home sales between $550,000 and 650,000 were fast paced — a median 13 days-on-market. For condos, the quickest sales took place in the $300,000 to $475,000 price range, occurring at a median of 16 days on the market.
With no change to the number of single-family home sales closing in June 2015 compared to June 2016 — 324 homes closed both months — comparing the first six months of 2015 to the first six months of 2016, reveals overall sales volume up 7.8%. A total of 1,713 SF homes closed to date this year compared to 1,589 closings during the same period last year.
Condominium sales volume was up significantly in June — 500 closed sales during June 2015 to 548 units closed in the same timeframe this year — a 9.6% increase. Year-to-date, condo market sales volume is up 10.7 percent, reflecting 2,639 condo unit closings during the first half of 2016.
“It is common for home sales and prices to be up at the same time,” says Kim. “This is a function of supply and demand.”
The median price of a single-family home on Oahu hit a new monthly high of $760,000 —breaking the previous record of $720,000, set twice, in October 2015 and in April 2016.
“A closer analysis of these figures shows that the median price for single-family homes was skewed a bit by the sale of 20 properties for $2 million or more,” says Kim.
Yet, the median price of Oahu condos also made a new monthly high, breaking the $400,000 ceiling for the first time — to $405,500. The previous record, set in April this year, was $389,500.
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.
Single-family home hot neighborhoods:
Ewa Plain: 14 days
Kapahulu — Diamond Head: 8 days
Makaha — Nanakuli: 9 days
Wahiawa: 10 days
Waipahu: 15 days
Ewa Plain: 15 days
Kailua – Waimanalo: 6 days
Kalihi — Palama: 8 days
Kaneohe: 7 days
Makakilo: 14 days
Mililani: 8 days
Moanalua – Salt Lake: 14 days
Pearl City – Aiea: 10 days
Wahiawa: 13 days
Waipahu: 7 days
Source: Honolulu Board of REALTORS® , compiled from MLS data. May 2016