As we kick off the fourth quarter, 2017 promises to be another banner year for Oahu real estate. Year-to-date stats reported by the Honolulu Board of Realtors report single-family home prices up 3% at the end of October — condo are up 4.4% — and closed sales for the first 10 months of 2017 is up 5.1% for single-family homes, and up 6.6% in the condo segment, outpacing stats from a year ago.
Pending sales for both single-family and condos are up significantly, year-over-year — the number of single-family homes in escrow but not yet closed are up 20.8% in October, as compared to the same period in 2016. Likewise, condo sales in escrow have increased 18.6%.
“We continue to see multiple offers on a large percentage of listings, which is attractive to sellers because competition leads to negotiating leverage in favor of the seller,” says Kalama Kim, principal broker at Coldwell Banker Pacific Properties.
“Buyers may want to choose to negotiate to be in a back-up position on a property they want to purchase,” adds Kim. “Sometimes the first-position buyer changes their mind, allowing the back-up buyer to purchase the house.”
October showed a spike in new listings — both in single-family homes (up 13.8%) and condos (up 10.7%) — yet the months of remaining inventory remains low due to the increase in sales.
“The lack of inventory over the past few years has put buyers at a disadvantage and limited buying choices,” says Kim. “But, the end of the year is sometimes the slowest time of the year, which could allow buyers more time and more options.”
The number of sales closed reflects Oahu real estate is still sizzling hot, even into the fall season when historically, activity slows down. Single-family closed sales saw a 6% increase, from 335 closings in October 2016 to 355 a month ago. Condo sales volume was up a hefty 14.3%, from 428 a year ago to 489 last month.
In comparison, sales of SF and condos are currently closing at a pace similar to stats from 2002 and again in 2007, falling short of 30-year highs recorded in 2005, when volume peaked and more than 800 condo sales were recorded in a single month and more than 400 SF sales as well. Incidentally, 30-year lows in sales volume were recorded in 1995 for SF (fewer than 100 sales in a month) and 1997 for condos (slightly more than 100 sales).
“Sales volume continues to be robust,” says Kim. “The combination of increasing unit sales and rising prices fuels sales volume and illustrates how healthy our current real estate market has become.”
Median prices of single-family homes and condos continue to trend upward.
In October, the median sales price of a single-family home inched up 1.3% from $742,000 in October 2016 to $752,000 last month — a sustainable increase. Year-to-date prices increased 3%, from $733,000 (October 2016) to $755,000 (October 2017).
Condo prices too, have risen at a slow, steady pace — up 0.4% from October 2016 to October 2017, with the year-to-date tally up 4.4%.
The percent of original list price received was slightly down roughly 1.5% in October to 97.7% and 97.4% for single-family homes and condos. The percent of list price received is typically highest in the summer, a time when competition is the highest. The price range where sellers typically receive the largest percentage of the list price, is $550,000 to $650,000 (SF), and $300,000 to $375,000 and $475,000 to $700,000 range for condos.
This month’s hot neighborhoods were selected based on record-setting or near record-setting sales volume. For the following neighborhoods, the number of homes that closed in September was the highest or second highest number of closings in two years.
- Ewa: 92 homes closed
- Kaneohe: 31 homes closed
- Makiki – Moiliili : 13 homes closed
- Mililani: 45 condos closed
- Wahiawa: 12 homes closed
- Windward Coast: 5 condos closed
Source: Honolulu Board of REALTORS®, compiled from MLS data. October 2017