Is Inventory Really at an All-time Low?

If you listen to the word on the street, housing options on Oahu seem to be getting farther and farther out of reach.  The Honolulu Star Advertiser described the situation last week in a featured story:

The limited supply of single-family homes on Oahu pushed the median price beyond $700,000 in June, tying the record set a year ago and placing homeownership out of reach for many first-time buyers.

"Affordable now is typically a condominium … unless they have help from family along with higher income," said Dennis Oshiro, executive director of the Hawaii Homeownership Center, a nonprofit that provides financial education to prospective first-time homebuyers.

With the median Single Family Home (SFH) prices climbing over $700,000 in July and median condo prices hitting $390,000, its clear that overall the market is experiencing a housing shortage and median price increases. But after taking a closer look at the data, our findings painted a much more nuanced picture. 

Your options expand the closer you look.  To get the full picture you need to think in terms of market areas.  

The inventory on Oahu is at record low levels. Combined with today's interest rates, which maximize buying power and have brought more buyers into the market, these inventory levels are changing the playing field for buyers and sellers.