According to data released by the Honolulu Board of Realtors for the Oahu real estate market, there are signs that the pendulum is beginning to swing back in favor of sellers. Rising prices, a shrinking inventory of unsold homes, and sellers receiving multiple offers in some areas of the island all point to a recovery in the market this year. In addition, an increase in "pending sales" -- where a buyer has accepted a contract but the sale has not yet closed -- is a positive sign. The number of pending sales rose 45% in August over numbers in 2009.
The median sales price in August on Oahu was $645,239, the highest in more than two years, surpassing the number of $560,000 recorded in August 2009 and $604,500 in July. Condominium prices also rose in August, with the median of $307,500 topping $290,000 a year earlier and $300,000 in July.
In Hawaii Kai, some homes have brought multiple offers, as inventory in some areas has fallen tremendously from a short time ago. Island-wide, inventory of single-family homes on Oahu fell to 1,526 in August, down from 1,850 in August 2009. At the current pace of sales, it would take 6.5 months to liquidate this supply, down from 9.1 months in August 2009. The President of the Honolulu Board of Realtors, Brian Benton, feels anything under 6 months would place Oahu real estate back into a seller's market.
Sales volume declined for both single-family homes and condominiums, which the Board of Realtors attributed to the end of a federal tax credit for homebuyers. The number of single-family homes that sold fell to 224 from 239 in August 2009 and 269 in July. Condo sales slipped to 289 from 348 a year earlier and 327 in July.
But Days on Market decreased, always a good indicator of demand. Single-family homes were on the market for an average of 32 days, down from 49 days in August 2009. For condos, the number of days on the market fell to 33 from 53 a year earlier.
Another indicator of the trend back to favoring sellers is the percentage of sales price to list price. Sellers received 94.8% of their asking price in August, up from 93.6% a year earlier. "As that percentage gets closer to 100%, it is an indication that we are trending into a sellers market," Benton said.
Short sales are still a big factor in the island market, because they take much longer to close, sometimes nine months. Makaha and Ewa are 2 areas on Oahu more affected by the foreclosure and short sale pressures than other communities.
While recovery in the Oahu real estate market varies widely depending on area, Hawaii Kai seems well on its way to a strong sales year. Here are details of our Hawaii Kai market:
Single Family
August
2009 - 15 sales
2010 - 21 sales - an increase of 40%
2009 - Median sales price $795,000
2010 - Median sales price $895,000 - an increase of 12.6%
2009 - % of original list price received - 89.1%
2010 - % of original list price received - 95.2% - an increase of 6.8%
2009 - DOM - 70
2010 - DOM - 19, a decrease of 72.9%
2009 - Inventory of homes at month end - 97
2010 - Inventory of homes at month end - 91 - a decrease of 6.2%
Year to Date
2009 - 106 sales
2010 - 124 sales - an increase of 17%
2009 - Median sales price $765,000
2010 - Median sales price $825,500 - an increase of 7.9%
2009 - % of original list price received - 91.7%
2010 - % of original list price received - 96.4% - an increase of 5.2%
2009 - DOM - 55
2010 - DOM - 25 - a decrease of 55%
Condos
August
2009 - 20 sales
2010 - 14 sales - a decrease of 30%
2009 - Median sales price $555,000
2010 - Median sales price $547,500 - a decrease of 1.4%
2009 - % of original list price received - 96.1%
2010 - % of original list price received - 96.5% - an increase of 0.3%
2009 - DOM - 81
2010 - DOM - 28 - a decrease of 65.4%
2009 - Inventory of homes at month end - 67
2010 - Inventory of homes at month end - 47 - a decrease of 29.9%
Year to Date
2009 - 113 sales
2010 - 139 sales - an increase of 23%
2009 - Median sales price $486,500
2010 - Median sales price $525,000 - an increase of 7.9%
2009 - % of original list price received - 93.9%
2010 - % of original list price received - 97% - an increase of 3.3%
2009 - DOM - 78
2010 - DOM - 18 - a decrease of 76.9%
You can see for yourself the strength of the Hawaii Kai real estate market. Call or email me to look at some properties now, while the rates are still at historic lows.
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