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.
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