Housing market stats steady through August while inventory climbs

Sales volume and sales prices in August are holding steady as compared with data from the same period last year.

But, what has increased dramatically since 2018, is inventory. The Honolulu Board of Realtors tracks inventory in three ways each month: New Listings, Total Active Listings, and Months of Inventory. With the exception of new single-family home listings, which was up 6.1% in August, inventory levels saw double-digit increase across the board last month.

With past inventory counts in such short supply for such an extended period of time, it’s almost difficult to remember when Oahu inventory as balanced as it currently is.

The months of inventory remaining stat, which measures how long the current number of listings would take to sell at the current rate of sale, was up 28.6% in August in the single-family segment, and up 37.9% in condos. Currently, there are 4 months of condo inventory, the highest in 7 years when there was 4.1 months of inventory in August 2012 and single-family inventory stands at 3.6 months — also a 7-year high. The last time there was 3.6 months of single-family inventory was July 2012.

“We continue to see double-digit increases in active listings for both single-family homes and condominiums throughout this year,” says Jenny Brady, president of the Honolulu Board of Realtors. “While properties have remained on the market a little longer, the median days on market is still under a month.”

For both buyers and sellers, reported market shifts reflect a return-to-normal inventory levels, which makes relying on a seasoned real estate agent when buying or selling more important than ever.

“In today’s market, buyers have many choices, so it takes a strategic and focused real estate agent to get (buyer) eyes on your listing and attract people to visit and make an offer,” says Kalama Kim, Realtor® and principal broker at Coldwell Banker Pacific Properties. “Now that buyers are not always competing with other buyers, they should seek out a skilled agent in negotiation to ensure they obtain the right property at a fair price.”

Sales of Single-Family Homes and Condos | August 2019

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

The number of closed sales in August was very close to the number of closed sales a year ago. Single-family home sales volume increased 1.7%, from 354 sales in August 2018 to 360 closed sales last month. Year-to-date, the number of closings were down 0.7% — with 2,427 homes closed last month — nearly even with August 2018 figures showing 2,444 homes closed.

The number of condo closings also held steady with 2018. A year ago, 521 condos closed, compared to 512 units closed last month. And year-to-date, the closings were down 6.4%.

Pending sales are up 4.5% in the single-family segment, and are down 5% in the condo segment.

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

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

Median sales prices, year-to-date, are flat. The price of a single-family home after the first eight months of the 2019, is exactly what it was at the eight-month point in 2018 — $785,000.

Condo prices held constant as well. The price of a condo after the first eight months of the 2019, is unchanged from the eight-month point in 2018 — $425,000.

Comparing August 2018 to August 2019, single-family median prices were down 2.5%, from $810,000 — a record high — to $790,000 last month. Condo prices were also down 1.8% in August, from $427,000 a year ago, to $419,500 last month.

“No matter if you’re selling in a hot market, slow market, or neutral market, sellers should work with their agent to select the right pricing strategy for the,” says Kim. “Do they want to price low to create a bidding war, or higher to create a negotiation environment? The key is for the seller to know what they want to achieve and which strategy they feel most comfortable with to achieve their goal.”

HOT MARKETS!

The stat that shot up the fastest in HBR’s August report was the number of days on the market. The DOM for single-family homes was up 80% from last year — from 15 days in August 2018 to 27 days last month. Condo DOM was up 22.2%, from 18 days to 22 days.

This month’s hot market are those neighborhoods with the fewest days on the market. The fastest sales — 15 days or less — occurred in the following neighborhoods.