Competition Drives up Prices for Oahu Real Esatte 2012- 2013
2012 has been an exciting year with the market’s momentum building.
Based on its over 40 years of experience and market research capabilities, Prudential Locations is in a unique position to provide such analysis and insights to empower buyers and sellers.
By the end of 2012, the combination of an improving economy, low interest rates, and high demand for available inventory proved the projections to be true based on the following results for Oahu real estate market:
Key take-aways:
- All indicators are at or near record levels. Properties are selling quickly and most sellers are getting close to -- or more than -- their asking price.
- All current market conditions point to increased upward pressure on sales and prices. The extremely low number of properties available for sale may be constraining the expected growth in number of sales.
A closer look:
- Sales: Oahu single-family home sales were 3,072, a 6.4 percent increase over 2011. Condominium sales were 4,221, a 7.4 percent increase over 2011.
- Oahu Median Price: The Oahu single-family 2012 median price is $625,000, an 8.1 percent increase over 2011. The condominium median price is $315,000, a 5.0 percent increase over 2011.
- Appreciation: The amount of home appreciation varied depending on region and neighborhood, with 68 percent of Oahu neighborhoods showing an increase in median price in 2012 pointing to a broad-based price shift.
- Distressed Property: The number of distressed sales dropped by almost half in 2012. About 8.5 percent of all residential property sales were either short sales or lender sales, down from 15.5 percent in 2011. O‘ahu’s Leeward and Ewa regions are still the hardest hit with distressed property sales of 34 percent and 28 percent respectively.
- Interest Rates: Mortgage rates are at record lows. The current rate for a 30-year conventional mortgage is 3.32 percent, effectively putting Oahu homes “on sale,” as well as increasing the number of buyers who can afford to buy
A “Bid‐up” occurs in a competitive market when a property receives multiple offers, and sells for more than the listed price. When the percentage of bid‐ups increase, median prices increase.
Competition Drives up Prices for Oahu Real Esatte 2012- 2013
Comments(1)