Record Low Inventory on Oahu: What It Means to Buyers and Sellers

The inventory on Oahu is at historically 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.

Low Inventory:

On a yearly basis, looking at year-end listing counts, listings were at their lowest level on record in December 2012.
At the current rate of sales, all of the homes and condos available for sale on Oahu would be gone in less than 3 months if no other listings came on the market.
Although single family active listings have come up slightly in the first quarter of this year, there is still an amazing lack of inventory for sale.
Condo listings are at their lowest level ever, a surprising fact considering that more condos are built on Oahu every year.
The number of homes coming onto the market isn’t keeping pace with the demand of buyers. As a result, we’re seeing increased competition for properties, with multiple offers and sales over the listing price.
Currently one in every 4 Oahu homes is being bid-up over asking price, and one in every 7 condos is being bid-up over asking price.

Oahu months of remaining inventory

What this means for home sellers:

Now is the time to sell, while the market is strong. Properties are selling quickly and getting top dollar.
If you’re selling to buy another property, you want to do that before the real estate market rises to its next peak.
An experienced Prudential agent can make sure your property is priced correctly in this active market, so that it will attract the most offers.
Not sure what your home is worth? Get a free Market analysis of what your home here.

Homes sold over asking price on Oahu

What this means for home buyers:

For buyers today, the market is very competitive at all price levels.
The Oahu real estate market is a very different environment than it was a few years ago, even a year ago.
To place a competitive bid, buyers need to be pre-qualified.
Homes are selling fast, so buyers need to stay on top of new listings. You can receive special alerts when a new home that meets your criteria comes on the market. Use the powersearch at PrudentialLocations.com and save your search to sign up for personalized email alerts from our neighborhood experts.
At Prudential Locations, our agents receive special training on competitive markets and how to win the sale in multiple offer situations. Let them help you successfully buy the property you want.

The chart below shows how competition drives prices: As the number of bids-over-asking price increase, they exert pressure on prices. Prices begin to rise in response. There is a lag between those factors as the market adjusts over time.