Single-family homes MSP hit another new all-time high

For the second month in a row, the median sale price of single-family homes exceeded $800,000 — reaching yet another all-time record high in September.

Additional stats released this week by the Honolulu Board of Realtors report the days on the market for single-family homes notably increased 21.4% last month, a jump from 14 days elapsed from listing to escrow in September 2017 to 17 days last month. Inventory has also moved up with 10.9% more active listings than a year ago — up from 1,227 in September 2017 to 1,361 this year. Yet despite the remarkable increase in supply, prices continue upward.

“The news of the new record high of $812,500 for single-family homes is sure to make home owners and recent buyers smile as they are gaining value and wealth in their home,” says Kalama Kim, Principal Broker at Coldwell Banker Pacific Properties. “Buyers currently in the market may take pause with rising prices, however they should focus on the prices in the neighborhoods they are interested in, because each neighborhood is different.”

Kim suggests that most people understand that living in Hawaii naturally comes with a high price tag.

“Choosing to live in Hawaii and enjoying our lifestyle is like choosing a higher-end restaurant, which offers a quality experience. You pay more for what you get. Hawaii’s cost of living, including housing, has always been higher. People continue to live here because they enjoy the lifestyle and the people.”

Homebuyers do enjoy a slight reprieve in that the recent increase in the number of active listings together with the increase in days on the market does offers more choices, less competition with other buyers, and a few more days to make up their mind.

“Homebuyers in today’s market now have a bit more time to investigate the homes they are interested in, as the market has slowed a tad,” adds Kim. “Last month, the days on market was at 17 days for homes — up from 14 days a year ago. That means buyers had three more days to consider options and decide how they might negotiate their offers.”

The past president of the Honolulu Board of Realtors adds that buyers are still motivated.

“Consumers seem to be watching and waiting to see if mortgage interest rates are going to continue to rise. However, for those potential homebuyers who are ‘on the fence,’ this is the time to buy since there is more inventory to consider and mortgage rates are still below five percent.”

Sales of Single-Family Homes and Condos | September 2018

Source: Honolulu Board of REALTORS^®, compiled from MLS data

Sales volume reflects housing demand on Oahu, or the rate at which homes are selling.
In September demand slowed as closed sales of single-family homes dropped 17.4% — from 374 homes sold in September 2017 to 309 homes last month. Year-to-date, the overall number of closed sales is down 3.7%.

Condominium sales volume is also down, however slightly — only 2.9% — from 526 condos closed in September a year ago, to 511 closed sales last month. The number of closed sales after the first nine months of 2018 as compared with the same time frame in 2017, is running very close — down 0.1% from 4,373 to 4,367 condo closings.

Median Sales Price of Single-Family Homes and Condos | September 2018

Source: Honolulu Board of REALTORS^®, compiled from MLS data

Despite the drop in demand and corresponding rise in supply, prices of single-family homes continued to a new, all-time high on Oahu.

The median sales price for a single-family home shot up to $812,500 in September, not only surpassing the record high of $810,000 set in August, but outperforming the year-over-year MSP of $760,000 by 6.9%.

Tracking the year-to-date MSP of 2017 versus 2018 after the first nine months, the median price of a single-family home is up 4.2%.

Condo median prices on Oahu are also up. The MSP in September 2018 was $428,000, up slightly from $425,000 during the same timeframe in 2017. Year-to-date, condo prices gained 5.5% — from $407,000 after the first nine months of 2017, to $429,500 by the end of September.
Clearly, buyers continue to be willing to pay more for real estate in both segments of markets, to date.

Median sale price indicates that half the homes on Oahu sold for more that the MSP and half the homes sold for less. Statistics from HBR show that there were 118 single-family homes on the market priced between $550,000 and $650,000. And 265 homes listed for between $650,000 and $800,000. Additionally, 100 homes listed for less than $550,000.

HOT MARKETS!

Sellers who closed in September had reason to be very happy, with sales averaging very close to 100% of the asking prices. Single-family homes commanded an average of 99.1% of the original list price, with condos nearly as gainful at 98.4% of the original list price.

Keeping in mind the summer’s price surge, prospective sellers need to closely examine unique trends in their own neighborhood before deciding upon a list price. For the best analytical advice, talk with one of our experienced agents at Coldwell Banker Pacific Properties to help you get the most value for your home.

This month’s hot markets are those neighborhoods — year-to-date — where homes consistently closed at 100% or more of the original list price.*