After 13 consecutive months of price gains on Oahu, the median price of a single-family home fell in August, breaking the streak, but not the enthusiasm, in the market.
According to a press release from the Honolulu Board of Realtors, “The truth is that August 2013 was a banner month — the high point of sales for the year. It would have been very difficult to duplicate that this year.”
Here is what the stats show for August.
The median price of a single-family home is down 2.3%, from $665,000 a year ago to $650,000 last month. And while prices declined slightly, homes last month were selling at a faster rate — 25% faster. The median number days it took a home to sell in August was 15 days.
Neighborhoods where homes were selling in the shortest time were the Windward Coast, where single-family homes were selling in 8 days; and Aina Haina-Kuliouou and Kalihi Palama, where homes sold in 12 days.
The median price of a condo on Oahu remained unchanged at $350,000. This segment, too, was selling quickly. In Kailua-Waimanalo, condos were selling in 8 days; Waialae-Kahala in 9 days, and in Downtown-Nuuanu in 12 days.
According to Fannie Cline, (R) Branch Manager at Coldwell Banker Pacific Properties, “Lack of inventory drives up demand.”
“More buyers than sellers create the frenzy,” she adds. “These neighborhoods that are selling quickly are neighborhoods that are desirable to live in, thus creating a high demand. Kailua condos have been hovering around an average of 12 active listings or less a month — that includes the Ka Malanai Project entries in MLS.”
The pace of sales indicates that demand is still high and the market remains very healthy.
The number of sales on the island also dropped in August. Single-family home sales were down to 323 recorded for the month, as compared to 366 last year. Condo sales were down as well — 444 last month as compared to 460 a year ago.
But pending sales for both categories —transactions in escrow waiting to close — are up, 10.8% and 16.6% respectively.
The number of active listings is also up in both categories, which means inventory is increasing to satisfy demand.
Year-to-date, prices are up over last year’s in single-family homes and in the condo market, and trending for another annual record.
With the August stats, the Median List Price is up 4.1% for a single-family home — from $639,000 a year ago to $665,000 this year. Condos are up 5.7% — from $331,000 in 2013 to $350,000.
Noteworthy exceptions to the month’s price drops were the high-end homes in Waialae-Kahala, where prices shot up 35% in August; and in North Shore condos, which were up 21% last month.
While it is often predicted Oahu Median Sales Price will hit the $1 million mark, several neighborhoods have already attained the distinction:
Single-family homes in Waialae-Kahala saw a MSP of $1.9 million in August. And the median home price for Moanalua-Salt Lake homes is at $1,125,000.
In the condo segment, there were three neighborhoods in the million-dollar plus range last month: Aina Haina-Kuliouou came in at $1,005,000; Makiki-Moiliili at $1,040,000; and Waialae-Kahala was at $1,800,000.
Several neighborhoods are close behind (nearly $1 million). I’ll keep you posted.