November 7, 2010

Honolulu condo and housing market update

The Honolulu housing market, which encompasses a large part of the Oahu real estate market, has shown some modest gains in the most recent tracking period. Perhaps more significantly, it has thus far avoided serious negative repercussions from the expiration of the federal housing tax credit. According to an October 7, 2010 piece from the Honolulu Star Advertiser, “The market continues to exhibit resilience in avoiding a hangover effect from the rush of buying earlier this year driven by a federal stimulus program that enticed home buyers with tax credits. A sizable foreclosure inventory also hasn’t dragged down median prices significantly. Inventory overall has remained relatively light, which is fueling competition among buyers for well-priced homes. There were 1,515 single-family homes on the market at the end of September, which compared with 1,711 a year earlier and 2,389 two years ago. Low interest rates and home prices that are still lower than they were three years ago also have helped drive sales. There were 274 single-family homes bought last month, up 8.3 percent from 253 a year earlier. For the first nine months of the year, the number of sales is up 20 percent to 2,251. In Oahu’s condominium market, the number of sales was down 15.8 percent to 298 last month from 354 a year earlier. But year-to-date, sales are up 21 percent to 2,937. The median sale price for condos last month was $335,000, up 8.2 percent from $309,500 a year earlier.”

Honolulu homes for sale were purchased for a lower median price in the month of September, which is an expected corollary to a higher rate of sales. According to an October 7, 2010 article from the Associated Press and BusinessWeek, “The median price of a single-family home on Oahu dipped slightly to $622,450 in September after rising for four straight months. The Honolulu Board of Realtors on Wednesday reported that September’s figure was down from the $640,000 reached in August but up from the $605,000 in September 2009. The median price for a condominium increased to $335,000, up $30,000 from August and 8.2 percent from a year ago when it was $309,500. There were 274 homes sold in September, an 8.3 percent increase from the same month last year. Condo sales softened with 298 closings, down 15.8 percent. The board reports that the market is holding steady and that homes and condos are selling faster than they did last year.”