Sales run strong in November while snowbirds keep momentum going

November continued the positive sales trend for both single-family home and condominium sales, according to the Honolulu Board of Realtors®. Single-family home sales increased by 11.1% over last November, marking the third consecutive month of double-digit percentage growth, while condominium sales slightly increased by 1.2% compared to the previous year.

The median prices showed modest declines for both segments — down 0.3% and 1.2%, respectively.

“November was a bounce-back month with closed sales and pending sales rising, while prices remained relatively flat,” says Kalama Kim, principal broker at Coldwell Banker Pacific Properties. “November is when the market typically begins to slow during the holidays, however, the increase in pending transactions last month was a pleasant surprise and could be caused by buyers who weren’t able to find a home during the frenzy of the summer months.”

Kim points out there are actually some advantages to listing your home in December, rather than waiting until January.

“The second-home and affluent market often begin to build momentum in demand during the holiday months because of the number of people who come back to Hawaii during the cold mainland winter months. Sellers in the median priced market may be able to put their home in the spotlight during December because so many sellers withdraw their listing from the market during the holiday season,” says Kim.

“The market continues to show good activity, which is encouraging for this time of year, when it typically cycles toward reduced seasonal activity,” says Jenny L. Brady, president of the Honolulu Board of Realtors®.

 

Sales of Single-Family Homes and Condos | November 2019

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

Sales volume was strong in November. Single-family home transaction closings in November were up 11.1% from the same period a year ago — from 288 closings in November 2018, to 320 homes that closed last month. Year-to-date, SF home closings increased 2.7% compared to the total closings for the first 11 months of 2018.

The number of SF homes in escrow but not yet closed rose 13.8% in November, while condo pending sales were also up 5.9%.

It is also interesting to note that pending sales have been on the rise now for five consecutive months, after a previous 18-month run of slowing pending sales.

 

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

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

 

Year-to-date median sales prices continue to hold fairly steady, only slightly down 0.6% from $790,000 in 2018, to $785,000 year-to-date at the end of November.

A look back to November 2018 compared to the past month reveal prices are higher by 0.3% — from $797,000 in November 2018, to $794,750 last month.

Condo prices are trending similarly. Year-to-date, the MSP of a condo from November 2018 is unchanged as of November this year — remaining stable at $425,000.

With less than 5% flux in sales volume, and prices holding relatively steady, Kim says, “The biggest surprise in 2019 was the unexpected drop in mortgage interest rates during the end of the first quarter of the year, which spurred demand on for the rest of the year. The year also saw the inventory of homes slowly rise allowing buyers to enjoy added choice.”

 

HOT MARKETS!

Single-family sales volume in the $700,000 to 799,000 price range saw the most significant increase up 36.4% — with 60 sales in this range in November. Condo sales in the $300,000 to $499,999 range increased by 14.4% representing 103 of the 434 condos closed in November.

Of the 320 SF homes sold in November, 55 were priced in the $600,000 to $699,999 range, and 40 homes sold between $800,000 to $899,999.

Ninety condos sold in the $400,000 to $499,999 category, and 59 sold, priced between $200,000 and $299,000 — making up the price points with the most sales.

The fewest sales were SF homes priced $200,000 to $299,999 and $1.6 to 1.7 million. For the condo segment, units priced between $900,000 and $999,999 sold the fewest.

SOURCE: Honolulu Board of REALTORS® , compiled from MLS data.

By |2019-12-19T14:35:01+00:00December 19, 2019|

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