Temperatures and Oahu’s Housing Prices Heat up in August
Temperatures were not the only things blazing on Oahu in August. Median sales price of single-family homes and condominiums rose 7.5% and 1.1%, respectively, compared to prices this time last year.
For August, there were 1,354 active single-family homes listings — compared to 1,263 in August 2014 — and 1,876 condos, compared to 1,815 a year ago, according to Honolulu Board of REALTORS® monthly housing statistics.
“Inventory is slowly increasing as compared to demand,” says Kalama Kim, principal broker at Coldwell Banker Pacific Properties. “However, the key word is slowly. The month’s remaining inventory for August was 3.4 months, up from 3 months during the same month last year. However, we are still seeing multiple offers on most properties for sale because that number is still a low number.”
For prospective sellers considering putting their home on the market, Kim offers the following advice:
“Since most buyers search the Internet for homes, it is critical that the listing for sale has outstanding pictures with good lighting allowing the buyer to envision what the home may look like and drawing them in for a showing.”
August statistics show the median days-on-the-market is 20 days for SF homes and 19 days for condos. Single-family home sellers in August typically received 100% of their original asking price — condo sellers received 98.3%. And pending sales for SF homes are up 8.9% compared to the same period last year — all which indicate a strong and healthy market.
Island housing stats show a 6.5% bump in sales compared to August 2015 figures — 344 single-family homes sold in August, compared to 323 a year ago. The number of condos closed in August was down 3.6%, from 444 in August a year ago to 428 last month.
The median price of a single-family home in August was $699,000, up 7.5% from the same time last year. The MSP of a single-family home on the island reached $700,000 in March and in June, peaking at an all-time high of $710,000 in July.
The MSP of a condo on Oahu was $354,000, up 1.1% from $350,000 last August. In 2015, higher MSPs were recorded in January at $381,500, March $380,000, April $370,475, and in May $375,000.
Year-to-date MSP are trending into record territory for both categories — at $693,000 for single-family homes, compared to $665,000 after August 2014; and at $358,250 for condos, up from $350,000 this time last year.
Coldwell Banker’s Kim addresses the historically high cost of housing on Oahu as well as throughout the state, adding that rising prices don’t mean first-time homebuyers should shy away from purchasing.
“Homebuyers should meet with a Realtor for a consultation to discuss their options,” says Kim. “There are attractive programs for first-time homebuyers. Some don’t require any money down to purchase a home.
“Homebuyers should also be flexible with their specifications during their home search. An additional 30-minute drive to work could mean a single-family home instead of a townhome. Or being willing to consider a townhome may allow the first-time homebuyer to purchase a residence with 4 bedrooms instead of 3. The key is to meet with a Realtor and to keep an open mind.”
Kim emphasizes that neighborhoods become less expensive as you increase the distance from Honolulu. The west side of the island, the Waianae coast and the Windward coast offer excellent values and more house for the money.
Neighborhoods earning a mention as a Hot Market include the North Shore — comprised of Haleiwa, Kahuku, Laie, Paalaakai, Pupukea, Waialua — where median sales prices for a single-family home increased more than 30%. The recent month’s stats show the median price jumps from $644,000 in 2014 to $840,000 this year.
The MSP of a single-family home jumped up more than 20% in Aina Haina-Kuliouou to $1,150,000; Kalihi-Palama to $737,000; in Makakilo to $668,000; and in Makiki-Moiliili to $1,087,500 as of July.
Brisk condo sales volume in July was at or near two-year highs in Makaha-Nanakuli with 23 units closed sales; in Makakilo with 20 closed sales; and in Waikiki with 93 units closed.