Buyer enthusiasm spurred by HBR’s latest housing stats

In their most recent report, the Honolulu Board of Realtors indicates that as the inventory of homes — especially new listings — for sale on Oahu is on the rise, some of the largest bump-ups are in the mid-range priced single-family homes and condos.

“New listings for both single-family homes and condos are dramatically up from last year, which may mean that sellers are either ready to cash out or those who have been considering an upgrade or downsize are opting to act now while mortgage interest rates remain low,” says Kalama Kim, principal broker at Coldwell Banker Pacific Properties.

In January, inventory for single-family homes priced $350,000 and below was up 78.6% when compared to January 2018, and up 53.3% in homes priced from $650,001 to $800,000 — the two price ranges with the most impressive increases.

Inventory surged most in the mid-range condos as well. The number of condominiums on the market priced between $200,001 and $250,000 shot up 50% since January 2018, and up 45% in the $250,001 to $300,000-priced units. After months of depleted inventory levels, the influx of new listings across the board is encouraging, especially for buyers shopping in these popular price ranges.

Prior to April 2018, inventory had been seriously drained for months. Since then, the number of active listings has been steadily building across the board.

“January 2019 figures released this week indicate active inventory for single-family homes is up 36.6% and condos are up 31.7%,” say Kim. “This is great news for all buyers who now have more choices.”

For many months, Oahu inventory has been insufficient to meet the rising demand for housing, a boon for sellers perhaps, but a source of frustration for buyers faced with limited choices among a dwindling supply of available listings. The resultant fast pace of sales was likely sufficient to motivate many would-be sellers to act, and in the past ten months, inventory has slowly risen. The rising market inventory adjustment has slowed sales volume, pace and price.

According to Kim, the most significant shift in the Oahu housing market may be the Months of Inventory remaining, which combines supply (inventory this month) and demand (closed sales this month) into one statistic, and to show how long it would take at the current rate of sales to sell out the inventory. In January, the months of inventory jumped 57.9% from January 2018 for single-family homes, and 41.7% for condos during the same period.

Sales of Single-Family Homes and Condos | January 2019

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

The HBR reports a 2.4% drop in the number of single-family homes that closed in January, compared to January 2018. In January, only 246 homes sold, the third lowest number of closings in two years. Pending sales are also down 12.9%. This is the 13th consecutive month pending sales are down.

Condo sales dropped by 12.8%, down from 374 in January 2018 to 326 — the lowest number of closings in two years. Pending sales are down 19.6%. Pending sales have been down in the condo segment in 12 of the last 13 months.

Median Sales Price of Single-Family Homes and Condos | January 2019

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

The MSP in January for homes was $767,500 — down 0.6% from a year ago. Condo prices fell 7.2% to $399,000.

The president of the Board of Realtors says the January stats point to a balanced market for both buyers and sellers, referring to a softening in prices together with a rise in inventory.

“We started 2019 with very healthy increases in new listings for both single-family homes and condominiums, adding to the inventory available to potential buyers,” she said.

HOT MARKETS!

New listings are up — 21.8% in single-family homes, and 18.8% in condominiums — in January, compared to January 2018.

More inventory means more to choose from, less competition from other buyers, and a more balanced market for buyers and sellers. The following is a list of neighborhoods with an increase in inventory of at least 50%.*

*Honolulu Board of REALTORS®, MLS Data, – December 2018