Oahu Housing Inventory - We Need More!

By
Real Estate Agent with Century 21 iProperties Hawaii RS-54129

Realtors representing buyers know it's been tough getting the right home.  Properties selling at attractive prices have been getting snapped up for the last couple of months.  In November 2009 for example, condo/townhome sales volume was up 102% over the same period one year earlier!  Single family home sales were up 46% over November 2008.

What's going on in Oahu's real estate market? 

Here are some factors bringing home prices down:

- Some distressed homeowners are selling properties far below what they paid for them several years ago. 

- Foreclosures have increased and the owners' banks are putting REO's on the market.

Why haven't prices fallen more, as they have in some mainland markets?

- Owners who do not need to sell are waiting for prices to recover.  This could take a long time, maybe several years.  Some owners are in this position where they don't need the money and they can wait it out.

- Popular neighborhoods, particularly Honolulu, East Oahu and Windward Oahu are still hot markets and the best deals get snapped up quickly.

What Should an Owner Do?

Lack of inventory is keeping prices up.  When interest rise and if more owners decide to sell their homes in the coming year, prices could fall.  This could be the best time to sell for several years.

Should Buyers Pull the Trigger?

We might not be at the bottom yet.  On the other hand, prices have declined significantly.  In some areas homes are selling for around 50%-60% of what they sold for a few years ago.  When the market takes off again, people who bought now won't be so worried about whether they timed the exact market bottom.

Inventory of Oahu homes has been declining in 2009.  We are in a seller's market. 

Michael Bates (Realtor Associate)

Coldwell Banker Pacific Properties

1909 Ala Wai Blvd C-2

Honolulu, HI  96815

Hawaii Realtor

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Rainmaker
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Tere Rottink
CoastalVa Realty Inc - Virginia Beach, VA

Great market report.  I love how you make sense of the numbers.  I find that the desirable neighborhoods and homes under $200,000 fared much better than the rest of the market in my area.   Tere

Feb 12, 2010 12:08 PM #1
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Lee & Pamela St. Peter
Berkshire Hathaway HomeServices YSU Realty: (919) 645-2522 - Raleigh, NC
Making Connections to Success in Real Estate

Mike, do you think the 1st time home buyers tax credit was the underlying cause for the increase in your area last November?  I know it was here in Raleigh.

Feb 15, 2010 01:42 AM #2
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Rainmaker
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