Market shift presents opportunities for both buyers and sellers

Oahu housing inventory continued to rise in April, while prices and sales volume remain stable. As the market recaptures equilibrium, both buyers and sellers are reaping the advantages.

“As the number of homes for sale increase (including new home/condo construction), buyers have the opportunity to negotiate price and terms,” says Kalama Kim, Realtor and principal broker at Coldwell Banker Pacific Properties. “If they don’t get the price they want on one property, they can negotiate on another property.

“More inventory also allows buyers to take more time to investigate properties and neighborhoods before they make the offer,” Kim adds. “In the past, buyers had just days to decide and now they may have weeks.”

Statistics recently reported by the Honolulu Board of Realtors® confirm that months of inventory remaining and active listings are up — for both single-family and condominiums — for the 11th consecutive month.

As expected, the number of days on the market is up sharply. HBR reports for single-family homes days on the market are up 47%, from 17 days in April 2018 to 25 days last month. Condominiums are taking longer to sell, 29 days in the latest set of stats, an increase of 61.1% from 2018. Notably, prices for both market segments remain stable.

Sellers are still getting what they are asking — or close to it — by aligning themselves with agents who are on top of the changes in market conditions, and able to really step-up their game to get listings noticed.

“Sellers who work with Realtors® who have adjusted to the new market can stand out among the pack by preparing and presenting the property in a way where buyers will choose their listing for sale,” Kim says.

As the market moves toward becoming more balanced, buyers are finding more selection with less anxiety, while right-priced sellers are attracting plenty of qualified buyers.

Sales of Single-Family Homes and Condos | April 2019

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

Single-family sales are up 10% — from 289 in April 2018, to 318 last month. Year-to-date, single-family closed sales are only down 1.4%.

Condo sales are down 13% — from 547 in April 2018, to 476 last month. Year-to-date, sales volume of condominiums on Oahu are down 11.2%.

Pending sales dropped for the 16th month — down 3.4% and 17.4%, respectively.

“Low mortgage interest rates, coupled with more inventory on the market compared to last year presented better opportunities for potential homebuyers and spurred more of them to buy,” says Jenny L. Brady, president of the Honolulu Board of Realtors®.

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

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

The median sales price of a single-family home in April dropped 2.9%, to $766,750 —from $790,000 a year ago. However, since the start of 2019, MSP for single-family homes has inched up 0.2%. In fact, prices of single-family homes have been in positive territory for 18 of the last 21 months.

Condo prices bumped up slightly — from $416,000 in April 2018 to $418,950 last month. After the first four months of 2019, the year-to-date median price of a condo is off 2.4%.

HOT MARKETS!

“Even though homes for sale inventory is increasing, each neighborhood is different,” says Kim. “Your Realtor® can provide you with the competitive environment for the neighborhoods you are interested in, allowing you to adjust your offer and negotiation approach to achieve success.”

This month’s hot market are those neighborhoods where the median sales price in March 2019 was significantly higher — by 40% or more — than the MSP in March 2018.