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High Demand and Low Inventory, Are We Hitting Critical Mass on O‘ahu?

By
Real Estate Agent with HI Pro Realty LLC RB-21531 RS-76763

 

 Low Inventory, High Demand in the Oahu Real Estate Market - HI Pro Realty LLC

 

 

The Real Estate market on O’ahu is in a constant state of evolution and Honolulu has been roiling in cash transactions these days as investors and first-time homeowners scramble to purchase what little there is in inventory. If you are interesting in purchasing property in Honolulu be prepared to make a cash offer with a quick close.

 

 

There is some hope and succor for first-time home buyers, however. The not so affordable reserved housing in Kaka’ako offers first timers exceptional terms on loan programs that have been tuned to the local market. Exceptions such as 100% gifted down payments or employment waivers with co-signor give families the ability to pay for and support younger generations in the acquisition of Real Estate.

 

 


Single-Family Home Resales

 

Number of Sales 

This Month Compared To 

Median* Sales Price 

This Month Compared To 

March 2016 297   $725,000  
March 2015 244 21.7% $700,000 3.6%

Condominium Resales

  Number of Sales This Month Compared To Median* Sales Price This Month Compared To
March 2016 491   $385,000  
March 2015 403 21.8% $380,000 1.3%

 

 

―There’s been no letup in demand for housing on Oahu, as March’s statistics clearly demonstrate, said Kalama Kim, 2016 president of the Honolulu Board of REALTORS®.

 

― Sales of single-family homes and condos showed huge growth compared to the same month in 2015, and the days on market for both types of housing were very low, indicating high demand and quick sales. As a result, we’re seeing housing inventory shrinking fast, with the current number of single-family homes at 844 – a level not seen since April of 2005. The historical low is 784, recorded in April 2004. It appears housing inventory for single-family homes is approaching critical levels. That said, homebuyers should keep in mind that there are still homes available at different price points. For instance, 135 single-family homes sold for under $700,000. More than half of the condos sold were for $400,000 or less. Still, the lack of inventory is a reminder of the need for more housing to meet the continued strong demand.

 

Please contact HI Pro Realty LLC for expert Real Estate sales and Property Management Services in Honolulu and Greater O’ahu.

 

Established in 1922, the Honolulu Board of REALTORS® is one of the largest of 1,200 boards of REALTORS® in the nation, and, with more than 6,000 members, is one of the largest trade organizations on Oahu. Membership is available to licensed real estate brokers, agents, property managers, appraisers, counselors and others engaged in all aspects of the real estate industry who pledge to adhere to a strict Code of Ethics and Standards of Practice. For more information, call (808) 732-3000 or visit www.hicentral.com.

 

 

 

High Demand and Low Inventory, Are We Hitting Critical Mass on O‘ahu?

Posted by

Crypto Certified Agent - By Propy 

HI Pro Realty LLC

REALTORS®, PROPERTY MANAGERS® 

We are a boutique brokerage firm offering responsive, dedicated, and professional Real Estate Sales and Pet Friendly Management Services in Honolulu, Hawai'i. 

 

                Office: (808) 941-8866   Mobile: (808) 926-7667

 

Comments (4)

Mark Don McInnes, Sandpoint-Idaho
Sandpoint Realty LLC - Sandpoint, ID
North Idaho Real Estate - 208-255.6227

Hello Kimo.  Things seem to be getting crazy everywhere again.  Your info seems to put you on one of the higher rungs of the ladder though.  Mark

Apr 08, 2016 09:38 AM
Kimo Stowell

Aloha Mark, it's a good time to be selling. A hui hou!

Apr 08, 2016 07:27 PM
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

It has changed so much from when I lived in Pearl City Kimo Stowell! It appears you have the perfect storm brewing with that inventory 

Apr 08, 2016 02:50 PM
Kimo Stowell

Aloha Paul, they are bulldozing prime ag land to build " affordable" housing. The prices just keep going up.

Apr 08, 2016 07:30 PM
Belinda Spillman
Aspen Lane Real Estate Colorful Colorado - Aurora, CO
Colorado Living!

Of course everyone wants to move to your wonderful paradise.  I can see why they are scrambling to own a piece of your wonderful island.

Apr 09, 2016 02:03 AM
Kimo Stowell

Aloha Belinda, housing is not inexpensive in Hawai'i and it appears demand will be high for sometime to come.

Apr 10, 2016 05:54 AM
Anna "Banana" Kruchten
HomeSmart Real Estate - Phoenix, AZ
602-380-4886

Kimo I would think that just about everyone would love to have a vacation condo in Hawaii.  Crazy heated up market for you and a lot of other areas of the country.  Buyers need you on their side to navigate the rigors of multiple bids and winning the sale for them.

Apr 09, 2016 07:34 AM
Kimo Stowell

Aloha Anna B., it's  almost a necessity to have all cash in hand when buying these days but with little inventory you need quite a bit of it to successfully buy property in metro Honolulu.

Apr 10, 2016 06:01 AM