See How Competitive Oahu Real Estate is in your Neighborhood

Measuring Competition with 'Bid-Ups'

It's no secret that Oahu real estate is one of the most competitive markets in the United States.  The combination of historically low inventory and increasingly high demand keeps pushing median prices and competition upward.  However, some areas are more competitive than others and the demand for homes in different areas of the island is constantly shifting.   

The Locations Research Department has found a reliable indicator for competition in real estate: Bid-Ups.  The price a home is first listed at is called the "list price" and the price it's finally sold for is the "sale price".  A "Bid-Up" is when a home is sold for more than it's list price.  When we aggregate the bid-ups for every home on the island, it provides a good indication of how competitive real estate is in each area.  

To calculate overall competition per area, we compared all the list/sale prices for all home sales on Oahu then calculate the percentage of total bid-ups in comparison to overall sales for each market area.  The higher the percentage of bid-ups, the higher the competition for homes in each area.

Here is how Oahu looks 2016 YTD:  

The two areas most people would expect to be #1 and #2, Honolulu and East Oahu, are actually #4 and #5 on the list. Ewa/Kapolei and Windward side, the more rural areas, are red hot this year.  There are a myriad of reasons as to why, let's look at some of the biggest ones.  

Military Population 

Mililani, Kapolei, Ewa, and to a slightly lesser degree, Windward, are popular destinations for military personnel and their families due to their proximity to bases and abundance of Single Family Homes (SFHs).  

SFHs are Newer and Less Expensive

Construction in Ewa/Kapolei and West Oahu has been non-stop as both areas are experiencing tremendous growth and a huge influx of new people.  These new homes are priced competitively to lure potential buyers from more popular areas closer to town such as Hawaii Kai and Kaimuki.  As buyers shop around, they are drawn to Ewa/Kaoplei because they can get more bang for their buck.  Not to mention a spacious, lush yard. 

Honolulu and East Oahu are More Expensive

The high prices in Town and on the east side of the island have caused a mini migration to Ewa, Kapolei, and Mililani. It's not that people don't want to live in town anymore, it's that some can't afford it.  

Get an Agent that can Compete

With historically high levels of Oahu real estate competition that are steadily rising, it's vital to have a Locations agent who is trained on how to compete in this environment.  Our agents live and breathe Oahu real estate, they can help you accomplish your real estate goals no matter how ambitious.  

Contact an agent today to get started