More Inventory and Less Competition Offer Opportunities for Oahu Homebuyers
Falling mortgage interest rates an additional boon to buyers
HONOLULU – (April 4, 2019) – Locations—Hawaii’s leading real estate firm—published its Oahu Residential Real Estate Report for the 12-month period of April 2018 to March 2019. This is a comparison to the previous 12-month period of April 2017 to March 2018:
- Single-family home median prices continue to rise, up four percent over the previous 12-month period to $792,000. Condominium median prices were flat at $418,000.
- Sales are below the previous year’s level, with nine percent fewer single-family home sales and six percent fewer condo sales.
- Homes are on the market for more days than last year, too, with single-family homes going into es-crow in a median of 20 days and condos going into escrow in a median of 22 days—an increase of 18 and 22 percent, respectively.
- Available inventory has also increased, with 31 percent more single-family homes for sale in the past 12 months, compared to the previous year, and 26 percent more condos for sale.
- Competition is easing, as the percent of bid-ups—or properties sold for above list price in a competitive bidding situation—has dropped to 23.9 percent for single-family homes and 16.4 percent for con-dos.
“Market conditions in March were favorable for both homebuyers and sellers, as we see a return to a more balanced market. It’s also a great market for move-up buyers and investors who are looking to rebalance their portfolios,” said Scott Higashi, president and CEO of Locations.
“Median prices rose in 66 percent of single-family neighborhoods and 60 percent of condo buildings. We anticipate that greater inventory in most neighborhoods than in the previous several years, coupled with mortgage interest rates around four percent, will draw more homebuyers this spring. For home sellers, who may have faced a smaller buyer pool and longer days on market over the past several months, lower borrowing rates is also welcome news.”
Higashi added that, on Oahu, 55 percent of single-family home neighborhoods and 52 percent of condominium buildings have more available inventory than the previous year. Fifty-three percent of neighborhoods and 55 percent of condominium buildings also had a decrease in the percentage of units sold for above the asking price compared to last year.
“Understanding the market dynamics of your particular neighborhood or building is actually far more important than the overall islandwide statistics. That’s where working with a knowledgeable REALTOR® who has access to neighborhood-specific data is key—for both homebuyers and sellers,” he added.