Momentum Builds for Strong Summer Sales
Sales volume and sales prices continue to escalate even before the start of the summer selling season. Statistics released by the Honolulu Board of REALTORS® report homes are selling at a very fast pace. In April, it took 15 days for a single-family home seller to receive an acceptable offer, and 19 days for condo sellers.
“Condominiums continue to be a popular option for homebuyers, with the median price climbing to a record level this month,” says Kalama Kim, principal broker at Coldwell Banker Pacific Properties. “Still, we know that there are hundreds of units listed below that median price, so I’d encourage potential homebuyers to partner with a Realtor to find a home that meets their needs and fits their budget.”
Significantly, buyers are still able to enjoy low mortgage interest rates. This translates into lower monthly mortgage payments — and more purchasing power. And while there are many positives for buyers, the climate remains clearly a seller’s market.
“It’s an ideal scenario to sell in a market where you can choose from multiple offers, and the offers come quickly — that’s the type of market we are in now,” says Kim.
A cautionary note to sellers sitting on a listing that may be lingering on the market:
“In a quick-selling market like the one we are experiencing now, homes that sit on the market are usually those that are priced way over the last comparable sale, in poor condition causing financing issues, or the property simply does not show well to buyers,” says Kim.
With the summer months still ahead, market indicators indicate continued momentum, according to Kim.
“Those signs include 1) The number of sales in April outpaced the number of new listings added to the market; 2) Pending sales were up by double-digit percentage points last month; 3) It only took 15 days for a seller to accept an offer on a home for sale, and 4) On average, a buyer paid 100% of the list price to purchase the property.”
The number of closed sales was up for the first quarter of 2016. In 2016 — 1,070 homes closed in the first four months — up 11.9% from 2015 when 956 homes had closed. The same is true for the condo segment. In 2016, 1,613 condos closed — up 12.6% from 2015 when 1,433 units closed.
There was no change in the number of single-family sales that closed in April compared to the same time last year, with 301 closed sales. The number of condos that closed last month was up 1.3% from a year ago (460 in April 2016 vs. 454 in April 2015).
Pending sales — the count of transactions in escrow waiting to close — are also up in both market segments. Pending sales are up 13.7% in single-family homes transactions, and up 6% in condo transactions.
This month’s hot markets are those neighborhoods where demand was high enough to motivate buyers to pay 100% or more of their original asking price.
Kapahulu – Diamond Head: 100.6%
Makaha – Nanakuli: 100%
Hawaii Kai: 100.5%
Makaha – Nanakuli: 100.7%
Moanalua – Salt Lake: 113.6%
North Shore: 100%
Waialae Kahala: 103.6%
Source: Honolulu Board of Realtors®, compiled from MLS data March 2016