May Sales Volume Highest in Four Years
Summer is here. Indicators point to it being a scorcher. Sales volume for May was the highest in four years. Prices are up. Days on the market are down. And pending sales are up — way up.
“I would characterize the current market as very fast moving,” says Kalama Kim, principal broker at Coldwell Banker Pacific Properties. “The average days on the market for closed sales in May was 14 days — from the time a property was listed for sale to the time an offer on the property was accepted. Pending sales for homes increased by a whopping 37.7% in May, which means closings over the next few months will also see significant increases.”
Homes are flying off the market in Kailua, Waianae, the Ewa Plain and Makakilo, according to Kim, where listings are selling in less than two weeks.
Bidding wars are the new normal. With a fleeting now-you-see-it-now-you-don’t inventory, the market conditions can be intimidating. Kim says being prepared has everything to do with being successful.
“First-time homebuyers need to invest a significant amount of time determining exactly what they are looking for in a home and neighborhood so they can be decisive once they see the right home,” Kim says. “Indecision in this market leads to losing out to another buyer.
“Sellers too need to plan ahead, allowing time to prepare the home to be presented in its best light and to implement a grand launch to generate multiple offers.”
Single family home sales volume was strong in May, kicking off the summer buying season, which typically peaks in June.
May stats, as reported by the Honolulu Board of Realtors, show the number of single-family homes sold were up 13.5%, from 319 one year ago, to 362 last month — the highest volume since August 2013.
Condo sales volume also was up dramatically. Last month, 540 condo units closed escrow, as compared to 477 closed during the same period in 2016 — an increase of 13.2%.
The ongoing demand for housing combined with limited inventory, along with the number of sales that remained in escrow at the close of May, signal a high number of closings will occur in the upcoming weeks. Pending single-family home sales are up by 37.7% and condo sales are 25.3% higher than last May.
Bidding competition between multiple buyers can result in sales prices exceeding asking prices. But regardless of how many offers are made, most Oahu sellers in May ended up netting between 95% and 100% or more of their asking price.
The median price for single-family houses was $745,000, a 3.6% increase from May 2016. Condo prices increased by 9% to $406,500.
As we approach mid year, the year-to-date price of a single-family home is up 2.8% from this time last year to $740,000 from $720,000. Year-to-end data for condo prices are up 5% to $399,000 from $380,000 at the end of May 2016.
With median prices inching closer to the million-dollar mark, this month’s hottest markets are those neighborhoods where the MSP met or broke the million dollar price tag in HBR’s most current year-to-date 2017 data.
Single-family homes in:
Aina Haina – Kuliouou: $1,175,000
Hawaii Kai: $1,070,000
Kailua – Waimanalo: $1,031,000
Makiki – Moiliili: $1,050,000
Waialae – Kahala: $1,848,556
Condo neighborhood with a MSP closest to $1 million:
Hawaii Kai: $675,000
Source: Honolulu Board of REALTORS®, compiled from MLS data. May 2017