Home prices continued on their steady climb in July — single-family homes up 5.3%, while condos inched up 1.1% from a year ago.
The most surprising statistic released this week by the Honolulu Board of Realtors for July, was available inventory. While an insufficient supply of listings to meet demand has been fueling the ascent in prices for more than a year, the number of active listings increased significantly last month. With 1,382 single-family homes on the market in July, inventory reached a two-year high, up 13.2% from July 2017. Similarly, there were 2,090 active condo listings last month, the second highest in two years — second only to June’s figures — and up 14.5% from July 2017. This is the fourth consecutive month of increases in the active listings stat, tracked by HBR, in the single-family segment, and the 13th consecutive month of a bump-up in active condominium listings.
“The long-awaited increase in inventory, which includes both an increase in new listings on the market and active inventory, is now evident and a month-over-month trend,” says Kalama Kim, Principal Broker at Coldwell Banker Pacific Properties. “This allows buyers more choices and may also signal a more balanced market.”
With the increase in inventory, the number of buyers and the number of sellers may be more closely matched, yet sales continue at a feverish pace. In July, single-family homes sold in a median 13 days on the market before opening escrow. The year-to-date DOM is 16 days. Condominiums were on the market for 18 days, before an accepted contract was official — year-to-date, is also 18 days. Both near 2-year lows.
There may be slightly less competition among buyers for every listing in this more-balanced market, but buyers still need to act quickly as well-priced homes continue to sell in record time.
Sales of Single-Family Homes and Condos | July 2018
Source: Honolulu Board of REALTORS®, compiled from MLS data
The number of single-family homes sold ticked down slightly, from 335 homes that closed in July of 2017 to 330 homes closed last month, though year-to-date figures are running neck-and-neck. During the first seven months of 2017, there were 2,124 closings of SF homes, compared to 2,090 closings to date in 2018.
Condo sales volume in 2018 is also running very close to 2017 data. This July, 502 condominiums closed — 5.7% more than in July 2017 when 475 units closed. Year-to-date, condo sales volume is up 1.9% — from 3,272 closings in 2017 to 3,335 this year.
“It is unusual for unit sales for condos/townhomes to be up while single-family home sales are down,” says Kim. “It could be because condo/townhome prices are more affordable than homes, or because inventory is more readily available.”
Median Sales Price of Single-Family Homes and Condos | July 2018
Source: Honolulu Board of REALTORS®, compiled from MLS data
Condo prices rose on Oahu for the 13th consecutive month. While the condo MSP in July was up only 1.1% in July — from $425,000 in July 2017 to $429,500 last month — the year-to-date growth in the median price of a condo has advanced from $400,000 for a condo at this time last year to $425,000 at the end of July — up 6.3%.
The median sales price of a single-family home is up as well — 5.3% in July — from $750,000 a year ago, to $789,500 last month — nearing that $800,000 benchmark. While it may seem the growth in the market is almost boom-like, the annual price progression is actually a modest and healthy 4.3%.
Curious to know what your home is worth in today’s market? Consult with a real estate professional at Coldwell Banker Pacific Properties. A market analysis will consider recent past sales in your neighborhood, while making adjustments in price up or down for condition, improvements, and size — bedrooms, baths and overall square footage.
“Sellers should always consult a Realtor® and review recent sales that are most similar to their own property,” adds Kim. “A Realtor® can provide an accurate Comparable Market Analysis to illustrate prices and values.”
HOT MARKETS!
Summer housing markets are known to sizzle. And some of Oahu’s hottest in June were regions where there was an increase of $90,000 or more when comparing homes that sold in June 2017 to June 2018. Take a look:
Single-family homes selling in:
Area 2017 Median 2018 Median Increase of
Hawaii Kai $1,036,250 $1,475,000 $438,750
Kailua $1,186,000 $1,280,000 $94,000
Kaneohe $798,400 $987,500 $189,100
Condos selling in:
Area 2017 Median 2018 Median Increase of
Diamond Head Region $448,000 $570,000 $122,000
Kailua $571,000 $747,500 $176,500
Kaneohe $485,000 $586,000 $101,000
Makakilo $380,000 $470,000 $90,000
North Shore $266,000 $588,500 $322,500
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