The average purchase price of a Kailua home for sale barely increased in the month of June, suggesting that the market may be slowing. According to a July 7, 2010 report from the Honolulu Star Advertiser, “The median price for previously owned single-family homes sold on Oahu last month eked out a 0.9 percent gain to $575,000 from $570,000 in the same month last year, according to figures released today by the Honolulu Board of Realtors. The slight rise came on sales volume that was up 8.4 percent to 285 transactions from 263 in the same period. Condominium sales soared 38 percent to 396 in June from 287 a year earlier, but the median price was down 3.2 percent to $300,000 from $310,000.” There is also the possibility that both home sales and the median sales price may have been artificially altered by the federal tax credit that recently expired.

Although the improvement amongst Waikiki condos for sale is partially driven by the federal tax credit, the market as a whole seems to be looking up. The article went on to state that: “There were 1,183 sales of single-family homes during the first five months of the year, which was a 40 percent gain over the same period in 2009. Condo sales totaled 1,605 during the January-May period, a 47.5 percent gain over 2009. Year-to-date prices were also up slightly. The median price of a single-family home for the first five months of the year was $585,000, a 3 percent increase over the same period in 2009, while the year-to-date median price of a condo was $305,000, a 1.5 percent gain over the same period in 2009.”

One particular example of Waikiki real estate faced a repossession and lawsuit over a property dispute. According to a June 25, 2010 report from the Honolulu Star Advertiser, “An affiliate of France’s second-largest banking firm, Groupe BPCE, has assumed ownership of the Waikiki Trade Center office tower at 2255 Kuhio Ave. The BPCE subsidiary, Natixis Real Estate Capital Inc., repossessed the property on Monday in lieu of foreclosure. Natixis acquired the property from California-based investors doing business as Waikiki Trade Center Investors LLC, which paid more than $30 million in 2006 for the 24-story tower on leasehold land at the corner of Seaside and Kuhio avenues.”

The Oahu foreclosure market, especially in the commercial sector, continued to face difficulty despite the perceived recovery of the rest of the real estate market. According to a June 18, 2010 article also from Pacific Business News, “The Four Seasons Resort Maui in Wailea, which serves as collateral for one of the largest delinquent loans in Hawaii, got a bit of more bad news this week when a portion of the loan was assigned an appraisal reduction of 25 percent. The Maui resort tops a list of more than a dozen hotel, industrial, office and retail properties that have defaulted on multimillion-dollar commercial mortgages or have been lost to foreclosure. The $425 million loan on the Four Seasons Maui property, which is owned by billionaire Michael Dell’s investment firm, was transferred to special servicing in April after falling delinquent on payments, according to Trepp.com, which researches commercial mortgage-backed securities and commercial mortgages.”

The economy of the island of Oahu seems to be gradually recovering as well, which should help boost the already rising numbers in the Oahu housing market. A June 21, 2010 report from the Associated Press found that “Personal income in Hawaii has grown at the sixth-fastest rate in the country through the first quarter of this year. The U.S. Bureau of Economic Analysis reports Hawaii residents’ cumulative personal income increased by 1.35 percent in the first quarter compared to the previous quarter. Military earnings jumped the most, at 0.37 percent. Retail trade, construction and federal civilian earnings all went up 0.13 percent. The industry with the largest earnings decrease was real estate, at a minus 0.05 percent.”

The SFR median sales price for April 2010 was $634,969 compared to $646,584 in 2009, that was a 1.8% drop which was a lot lower than the 11.5% for April 2008 compared to April 2009 drop.  The condo median sales price for April 2010 saw an increase of 2.4% over April 2009.

The number of days on the market is decreasing another indicator the market is gaining momentum and strength. The number of days on the market for SFR was 59 in April 2010 and 82 in April 2009. That is a decrease of 28.8%. The number of days on the market for condos was 55 in April 2010 and 81 in April 2009. That is a decrease of 32.3%.

Hopefully we see types of numbers the rest of the year and we see the market continue to stabilize.

There were 293 Oahu condo properties that sold in the month of June 2009 compared to 355 Oahu condo properties that sold in the month of June 2008. That was a decrease in the number of sales by 17.5%. That was not great news. Condos do usually lag behind single family homes after having a down market. Hopefully we will see that percentage start to shrink as time goes on.

Fortunately Hawaii properties have not been hit as hard as some mainland areas like California or Florida. Some of those markets have seen prices go down by as much as 60% from there highs. These numbers are not great, but they are somewhat encouraging. Hawaii definitely has been going through a natural market price adjustment. It could not keep going up at the rate we were without a pull back.

I will continue to post numbers each month going forward through the rest of the year.

Below are the median sales prices broken down by area on the island of Oahu.

Single family homes:
Metro Oahu (Town) $ 689,500, Diamond Head $990,000, Hawaii Kai $838,000,
Kailua $800,000, Kaneohe $672,000, North Shore $800,000, Central Oahu Mililani $550,000, Leeward Coast $375,000, Ewa Plain $525,000, Makakilo $566,500,
Waipahu $577,300 & Pearl City $575,000.

Condominiums:
Metro Oahu (Town) $325,000, Diamond Head $472,500, Hawaii Kai $542,500, Kailua $415,000, Kaneohe $357,500, North Shore $360,000, Central Oahu $300,000, Leeward Coast $173,000, Ewa Plain $285,000, Makakilo $320,000, Waipahu $299,500 & Pearl City $305,000.

Oahu real estate still seems to be a sound long term investment. You can search for Oahu real estate online on Jeff Manson website www.adrhi.com for the newest opportunities

When house hunting for Oahu real estate.  You may soon find out that the island has many different neighborhoods and communities to offer. The main regions are Honolulu, East Oahu, Windward, North Shore, Leeward and Central.  Within these regions are various towns, communities and neighborhoods each with their own distinctive characteristics.

Honolulu region has six main areas:
Moanalua – Salt Lake
Downtown – Nuuanu
Ala Moana – Kakaako
Makiki – Manoa
Waikiki

East Oahu has four more main areas:
Kaimuki
Waialae – Kahala
Hawaii Loa Ridge
Hawaii Kai – Portlock

Windward side if the island has three main areas:
Kailua
Kaneohe

North Shore region is a major area as well.

Leeward Oahu region has six main areas:
Aiea – Pearlridge – Pearl City
Waikele
Ewa
Kapolei
Makakilo
Ko Olina

Central Oahu has two main areas:
Royal Kunia
Mililani

Contact us if you have any questions about these neighborhoods and communities on Oahu. If you would like view Oahu homes and condos. Contact American Dream Realty at 808-792-7000.

American Dream Realty, Hawaii, is your best bet for finding the property you want, at a great price. We don’t just passively watch the market, but we actively search for the property you need, whether or not it’s listed! We call, talk to prospective sellers face to face, and do everything we can to help you get settled in the islands.

Oahu is home to museums, temples, lively festivals, golf, and world-class fishing. There is the famous North Shore, and a marine bay sanctuary at Hanauma Bay. There are outdoor activities for people of every age and interest, from snorkeling and surfing to exploring the island on mountain bike. The chance to be healthier and more active is a major reason so many people are eager to relocate to the islands.

American Dream Realty can answer your questions about living in Hawaii, on Oahu, and in Honolulu. We can help you choose the home and the neighborhood that are right for you, your family and your budget. Here at www.adrhi.com, we are your top Oahu real estate resource for making a successful home here in the Aloha state.