Coldwell Banker Pacific Properties supplies this newsletter to its agents to share with their clients. Here is what's the latest on Oahu Real Estate.
Summer is officially here! Resurgent local housing markets are evident by the number of homebuilders jumping back into the game. Additionally, the two most telling market indicators to watch are Months of Inventory Remaining and Days on the Market. Months of Remaining inventory combines supply and demand into a single statistic — measuring how long the active listings will last at the current rate of sales. In May, MRI dropped 32.4 percent in the single-family category. The current 2.5-month supply of unsold homes is well below the 6 to 9 month figures deemed a healthy market for buyers and sellers. Less than 6 months of supply indicates there is not enough inventory to meet demand, creating a competitive situation among buyers. MRI for condos dropped 40.9 percent, leaving only 2.6 months of inventory remaining. Days on the Market figures also continue to drop. In May, single-family homes were snapped up after a median 25 days on the market (compared to 28 days, one year ago). Condo sales took a median 27 days, before a contract was signed and escrow was opened. A year ago, the DOM for condos was 32. DOM was lower in May than in April, in both categories as well. With fewer homes listed than a year ago — 9.7 percent fewer single-family homes, and 18.8 percent fewer condos — heading into summer, sales are expected to continue to remain brisk with low inventory driving the market.
Sales volume continues to outpace previous year growth rates. In May, 266 homes closed on Oahu, compared to 243 in May of 2012 — a 9.5 percent increase. The volume of condo sales jumped 21.8 percent, from 371 sales in May 2012 to 452 last month. A look at pending sales is encouraging — especially in the single-family home categories under $550,000. Pending sales in the condominium segment are up 18.8 percent, indicating there are transactions in escrow waiting to close.
Despite the fact that many of the market indicators are positive, and the fact that the housing industry is firmly on a path to recovery, the Median Sale Price of a single-family home dropped 5.1 percent last month to $630,000. However, condo prices were up by 5 percent to $315,000.
If you are thinking about putting your home or condo on the market, and want to know more about statistics in your specific neighborhood, call me. I am happy to provide you with the latest market updates. Aloha, Lila Cellular: (808) 341-6034