Below is the sales activity for the month of March 2017 compared to the same month last year. This covers resale homes for Honolulu County (Oahu) and does not include new construction homes.
Single Family Home prices are still bouncing a little month to month, but up overall by nearly 4% from last year. The market is still strong. Low inventory levels continue to be a problem for home buyers in several of the areas.
Condos and townhouses also saw similar modest increases over the same time last year. Inventory levels are continuing to be a challenge in several of the areas. Condos that were hard to sell in past years are now getting multiple offers.
On Oahu, we not only have a shortage of available housing units for sale and for rent we also have a shortage of total housing units. That shortage has been increasing and will remain a challenge for those looking for a home. The number of new homes being built are not keeping up with the demand for housing.
Issues like the slow permitting process, state land use restrictions and delays, and constant law suits from special interest groups are driving up the cost over every housing built; while restricting the number added to the inventory. This is putting a huge burden on local working families. Their only insulation from rising costs is to own their home and lock in their mortgage.
Another area of concern is the threat to raise property taxes. The city is looking at several options, from extremely high increases on higher end properties and across the board increases to everyone. The State also has their eyes on property taxes as a new way to pay for things like public worker pay raises. If you speak with your local elected officials, you may want to express your opinion on the subject.
As previously reported, the VA is deleting about 340 condo complexes and CPR single family homes from their approved list. Many are in the planned communities near the Military bases. The Prothero Group is working with lenders and the VA to get them through the process of being re-approved and back on the VA list. We are doing this case by case as we represent clients interested in buying or selling those homes. This is critical for sellers, as VA buyers makeup a large percentage of buyers in many of these areas and will have an impact on property values if not addressed. The Prothero Group has extensive experience working with VA financing and can guide you through the process. If you are looking to purchase and the project may deleted from the VA list, do not worry. We can get it back on the list. If you are looking to sell your property, contact us and we can verify if your property is impacted. If it is, we can assist in getting it VA approved, allowing you to market to veterans.
With continued threats of interest rates climbing, buyers are still extremely active. An interest rate increase will raise the monthly payment of a home faster than price increases. Lenders are becoming extremely aggressive in getting home buyers as boom days of the refinancing cycle has ended. Loan officers who previously were too busy refinances to help a buyer, now want to be your friend.
Single-Family Resale Homes
# Sales Median Price Average Price
Mar 2017 309 $752,000 $936,331
Mar 2016 297 $725,000 $898,532
Condos/ Townhouse Resale Units
# Sales Median Price Average Price
Mar 2017 495 $400,000 $465,399
Mar 2016 491 $385,000 $457,503
*Median price means half the prices were above and half below the given price. For additional stats, please contact me.
Data was taken from the Honolulu Board of REALTORS® MLS system. It is deemed to be accurate, but not guaranteed.
Contact me anytime for updated numbers for your individual community.