Housing Supply is Too Low Oahu May 2015

Housing Supply is Too Low

Prices in Hawaii have gone unbelieveably higher to eye popping gains!

Update: Summer Selling Season is Early on Oahu, the frying pan has heated up! The statistics are in for April and single-family sales volume has skyrocketed almost 22% and prices continue to rise. Technically, Memorial Weekend is the start of the summer selling season, but the up-trend in prices did not let up even in the previous winter months.

The (HBR) [Honolulu Board of REALTORS®] recent report shows that in April, there were 424 new single-family home listings added to the inventory, and 301 homes closed. During the same period, 639 condos came on the market while 454 condo sales closed. HBR reported the median number of days on the market as 22 days for a single-family home and 19 days for a condo — new inventory, if it’s priced right, the property does not stay on the market for very long.  See the graphic below.

Like the Cheetah  of the Serengeti Plains, they can run as fast as a speeding gazelle for a while but will tire out and slow down.  That may be with our bubble market right now.  In the past months, you have seen mortgage rates below 4% and that has stoked the Hawaii Home Sales.  Here's what other industry experts are saying.

Kipplinger Letter says "For people who have waited for prices to rise so they can sell their home or refinance their mortgage, that’s good news." I say, after a while, it diminishes the affordability for first-time home buyers and even for people who have sold and are trading up. 

Daren Blomquist, RealtyTrac Vice President:

“It’s kind of a seesaw right now between supply and demand. One of the reasons for fewer sales is not so much a lack of demand but a lack of supply, especially in the price range the majority of buyers were looking for.”

Diana Olick, CNBC’s Realty Check:

“Total sales are still running below expectations for the year. Don’t blame winter weather, though. Blame the lack of supply.”

Bill McBride, Founder of Calculated Risk:

“Inventory is still very low (down 0.5% year-over-year in February). This will be important to watch over the next month at the start of the spring buying season.”

Lawrence Yun, Chief Economist at the National Association of Realtors:

(10 minute video if you click the link above)

“Insufficient supply appears to be hampering prospective buyers in several areas of the country and is hiking prices to near unsuitable levels. Stronger price growth is a boon for homeowners looking to build additional equity.”

Realtor

“The National Housing Trend Report shows that inventory has decreased 10.9 percent year over year.”

And some experts are actually calling it a “seller’s market”

Forbes.com

“Tight inventory is a main reason the ball is still in the sellers’ court.”

Bill Banfield, VP of Quicken Loans:

“We’re a bit low on the supply-side which could force prices up for buyers, further hammering home that we’re in a seller’s market.”

Bottom Line

If you are debating putting your home on the market this year, now may be the BEST time. Talk to us first, as we can give you tips on what you can do to generate multiple offers.  The number of buyers ready and willing to make a purchase is at the highest level in years. Contact us to get the process started.  Click below!