Low inventory and high demand continued to drive prices skyward in August. Markers such as multiple offers, bidding wars, and high list-to-sales-price ratios indicate buyer enthusiasm continues to be strong.
“Many properties are still receiving multiple offers,” says Kalama Kim, Principal Broker at Coldwell Banker Pacific Properties. “Demand continues to remain at a high level, while inventory has just started to rise — signs that consumers still view real estate as a good purchase option.”
Lawrence Yun, chief economist at the National Association of Realtors, stated solid economic growth, a healthy labor market, and the large millennial population were among the economic factors driving the market across the country.
According to the National Association of Realtors stats released last month, the five most expensive housing markets in the country during the second quarter were San Jose, California, where the median price single-family home was $1,405,000; San Francisco, $1,070,000; Anaheim-Santa Ana-Irvine, California, $830,000; Honolulu, $795,200; and San Diego, $645,000.
“Both the national economy and the state economy exhibit continued strength,” Kim adds. “When people have jobs and feel confident in the economy, they purchase real estate.”
While the number of active listings on Oahu is inching up slowly — August stats show single-family listings at a two-year high, yet the months-of-inventory-remaining, which has consistently been below 3 months for more than two years, is still historically low.
The median days a single-family home was on the market before opening escrow in August was 15 days — down from 16 days in August 2017.
Sales of Single-Family Homes and Condos | August 2018
Source: Honolulu Board of REALTORS®, compiled from MLS data
The volume of single-family homes sold ticked down slightly — 362 homes that closed in August of 2017 versus 354 homes closed last month, though year-to-date figures are still running neck-and-neck. During the first eight months of 2017, there were 2,486 closings of SF homes, compared to 2,444 closings to date in 2018.
Condo sales volume in 2018 is also running close to 2017 data, though, for the month of August, condominiums closings were down 9.4% (521 units closed) from August 2017 when 575 units closed, the two-year high. Year-to-date, condo sales volume is up 0.2% — from 3,847 closings in 2017 to 3,856 this year.
Median Sales Price of Single-Family Homes and Condos | August 2018
Source: Honolulu Board of REALTORS®, compiled from MLS data
In August, the Honolulu Board of Realtors reported the median price for single-family homes increased 3%, setting an all-time, new record high of $810,000. The previous high mark, set in June 2017, was $795,000. The MSP a year ago August was $786,250. Year-to-date, the MSP is up a modest 3.7% — a steady, healthy appreciation rate.
The median price of a condo on Oahu is also up slightly — 1.9% — from $419,000 in August 2017 to $427,000 last month.
It is important to understand the Median Sale Price is determined by being mid-range — half the homes on Oahu sold for more than $810,000 and half the homes sold for less. Typically, first-time homebuyers don’t jump right into the mid-range homes and should not be discouraged by the record MSP. According to the Honolulu Board of Realtors president, there are plenty of buying opportunities below $600,000 to be had if buyers stay focused on the 50% of homes that sold for less than the MSP.
“For those who find the initial home of their dreams is above their budget, they may consider a condo or townhome, or a neighborhood farther from town,” adds Kim.
HOT MARKETS!
This month’s Hot Markets are a selection of single-family homes in neighborhoods with a year-to-date MSP of less than $800,000, along with an increase in inventory this year. NOTE: MSP of condos in neighborhoods across the island were all less than $800,000.
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