Homes and condos selling like hotcakes, despite February price dip
Homes and condos are selling as quickly as they go on the market. According to the current Days on Market (DOM) indicator and stats released by the Honolulu Board of REALTORS®, single-family homes were on the market for an average of 25 days, while condominiums were on the market for an average of 29 days, before getting an accepted contract and opening escrow.
And while lack of inventory has been a headline for months, the latest report show that inventory of single-family homes and condominiums was up in February — new listings were up 6.4% in the single-family homes category, and up 14% in the condo segment — which may account for a slight decrease in the median price paid for a single-family homes and condos last month.
The increase in Oahu real estate inventory, along with continued record low mortgages is encouraging to potential home buyers who may have been put off by the lack of inventory previously available.
The number of homes that closed in February was up 5.8% from a year ago — from 190 in February 2014 to 201 last month. Condo sales volume was down a slight 2% from 296 units sold a year ago to 290 last month.
The median price paid for a single-family home fell in February, the first such decline in five months — since August 2014 — to see prices drop. Year-over-year home prices were down 4.6% from $679,000 in February 2014 to $648,000 last month.
The median price of a condominium on Oahu also dropped 9.3% — from $359,450 in February 2014 to $326,000 last month.
Historically, February is one of the slowest months of the year for real estate sales. Looking ahead, the market still shows strength with pending sales (transactions in escrow waiting to close) up in both categories — up 7.5% in single-family homes, and up 1.4% in condos.
This month’s hottest markets include neighborhoods where sellers received 100% (or more) of their original asking price.
Single-family homes trending hot in February:
- Aina Haina-Kuliouou: 100%
- Kaneohe: 100%
- Kapahulu-Diamond Head: 100.7%
- Moanalua-Salt Lake: 100%
- North Shore: 102.3%
- Waialae-Kahala: 100%
Hot neighborhoods where Condo sellers received 100 percent or more of their asking price:
- Wahiawa: 101.9%
And remarkably, while prices on Oahu overall dropped, there were a few standout neighborhoods where prices set record highs. Indeed, the median price of a single-family home in Kalihi-Palama hit an all-time high of $757,500. Likewise, condos prices in Kalihi-Palama also hit an all-time high of $538,500.
Single-family homes in Ewa posted the second highest Median Sales Prices (MSP) at $580,000.
The recent stats compiled by the Honolulu Board of REALTORS® reported condos in Downtown-Nuuanu posted the second highest MSP in two years, reaching $550,000. Condos sales did well in a number of other neighborhoods around the island as well. The MSP of a condo in Kaneohe broke the $500,000 mark for the second time, at $505,000 in January. And the MSP of condos in Makiki-Moiliili also made record highs of $380,000. Condos were selling for more in Pearl City-Aiea in January too, making $362,500 the highest MSP yet. And Waikiki condo prices are heading up as well, with a new MSP high of $400,000. If you own property in one of these hot neighborhoods and are waiting for the right time to get top dollar, now may be that time.