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Oahu Condos are Selling Faster Than Ever and Competition for Available Properties is Increasing

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Dan Richards

Locations

dan.richards@LocationsHawaii.com

808-724-6854

 

Oahu Condos are Selling Faster Than Ever and Competition for Available Properties is Increasing

Locations reports continued strength of the real estate market with prices and number of sales up

for both Oahu homes and Condos


HONOLULU – (June 1, 2016) – The Locations Research Department today released its Oahu Residential Real Estate Report for May 2016 after the analyzing sales activity for more than 350 Oahu neighborhoods. The report reveals even greater competition for available properties as evidenced by more bid-ups, key market indicators, showing continued strong demand and the rapid pace of condominium sales.

“The Oahu real estate market is becoming increasingly competitive with historically low levels of inventory and high demand,” said Scott Higashi, executive vice president, Locations. “We continue to see key indicators point to the strength of the market and we expect that this trend will run through 2016.”

Analysts from the Locations Research Department report that median prices are $715,000 for single-family homes and $378,000 for condominiums, up two percent and one percent respectively. The number of sales increased four percent for single-family homes and three percent for condominiums. Market indicators in 2016 show continued strong demand with lower days on market (DOM), lower months remaining inventory (MRI), and high percentage of bid-ups over last year. Bid-ups are more common, 29 percent of homes sold in May and 25 percent of condos sold in May were bid-up over asking price. In addition, condos are selling faster than ever, condos that closed in May saw median days on market of 16 days, the lowest since the summer of 2005.

Competition for available properties is high and getting tighter. Bid-ups are more common – 29 percent of homes sold in May and 25 percent of condos sold in May were bid-up over asking price. Homes and condos are selling faster. Condos that closed in May had a median Days On Market of 16 days, the lowest since the Summer of 2005.

Months of Remaining Inventory, an indicator of supply and demand, is very low. If no new listing came on the market, the available properties for sale would sell out in 3.1 months. Low MRI is another indicator of the Oahu real estate market becoming more competitive.

Market activity by price range in 2015 and 2016:

Market conditions improved the most in the “sweet spot,” the range closest to median - $500,000-749,000 for single-family homes and $250,000-499,000 for condos. Sales increased, DOM dropped and bid-ups increased. Higher price ranges have fewer sales, take longer to sell, have fewer bid-ups and receive less of asking price.

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