Oahu Market Update: June Activity Sizzles While Prices Hold Steady
More condominiums sold last month than in any month in the last two years, according to statistics reported by the Honolulu Board of REALTORS® this week. A record-breaking 500 condos closed in June. Single-family homes experienced it’s second highest number of closed sales in two years with 324 homes closed — second only to August of 2013, when 366 homes closed.
No doubt about it, the summer selling season has heated up. Mike James, president of Coldwell Banker Pacific Properties says, “Other signs indicating that Oahu’s housing market is sizzling hot: Listings that sold last month were only on the market for 18 days before they accepted an offer, and most of these listings received multiple offers from buyers.”
More sellers received more than their asking price last month. “This is significant,” says James, “because it shows that buyers are motivated to pay over listed price when they feel they are competing with other offers and have to offer more than the seller wants just to beat out the other buyers.”
Demand remains the driving market force. The steady stream of mainland and international investors, the fact that land is scarce, and no matter how quickly more homes are built, there continues to be a shortage. Even with a record number of happy sellers, there is still a shortage of homes for sale. In fact, new listings for single-family homes dropped 5% last month as compared to June 2014, and the number of new condo listings dropped 11.5% from June 2014 figures.
With the inventory shortage, it isn’t surprising that sales are happening fast — faster than last year.
“Sellers right now can expect to receive an acceptable offer — likely more than what they’re asking — within three weeks of putting their home on the market,” says James.
In June, 324 single-family homes closed escrow, compared to 303 a year ago — up 6.9%. Year-to-date figures show sales volume — the number of sales — during the first six months of 2015 up 3.4% in the single-family homes segment, compared to the first six months of 2014.
In the condo segment, closed sales are up 21.7% compared to a year ago and year-to-date figures are also up 3.3% this year. The June 2015 data, with 500 closings, was on par with sales volume figures in boom-era years 2003 and 2007.
While it remains to be a seller’s market on Oahu, prices have held steady in June. The median sales price of a single-family home was unchanged — at $700,000 in June, matching the MSP from a year ago. Year-to-date, the median sales price is up 2.3% — from $669,500 for the first six months of 2014 up to $685,000 for the first six months this year.
Condominium prices dipped in June — from $360,000 in June 2014 to $338,500 last month — but are up for the year. Year-to-date, the median sales price of a condo in 2015 is $358,500, compared to the six-month figure last year, which was $350,000.
With median prices inching closer to the million dollar mark, this month’s hottest markets are those neighborhoods which met or broke the million dollar price tag in the year-to-date 2015 tally.
Single-family homes in:
Aina Haina – Kuliouou: $1,100,000
Ala Moana – Kakaako: $1,217,500
Hawaii Kai: $1,045,000
Kailua – Waimanalo: $1,032,000
Makiki – Moiliili: $1,135,000
Waialae – Kahala: $1,825,000
Closest condo neighborhood climbing to $1 million:
Aina Haina – Kuliouou: $650,000
The Market Update is posted on the Honolulu-Home.com real estate and lifestyle blog each month. Be sure to subscribe to Honolulu-Home.com to stay up to date on all things Hawaii.