Oahu Housing Market Continues Steady Climb Increased Inventory Eases Competition

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Anne Cicero

Locations

anne.cicero@locationshawaii.com

808-738-3266

Oahu Housing Market Continues Steady Climb Increased Inventory Eases Competition

HONOLULU – (August 2, 2018) – Locations – Hawaii’s leading real estate firm – published its Oahu Residential Real Estate Report for the 12-month period ending in July 2018. Locations has previously reported on year-over-year monthly market statistics; however, in an effort to more accurately reflect the big picture of the market, Locations will now present the following highlights of the Oahu real estate market for the 12-month period of August 2017 to July 2018, as compared to the previous 12-month period of August 2016 to July 2017:

• Single-family home sales increased by 3 percent over the past 12 months, with 3,993 sales.  
• Condo sales also rose in the past year, by four percent to 5,986 sales.  
• The median price for single-family homes rose to $775,000, a three percent increase. 
• The median price for condos/townhomes increased by six percent to $425,000. 
• Single-family homes were on the market for a median of 20 days—an increase of two days. 
• Condos were on the market for a median of 17 days—a decrease of one day. 

“As median home prices continue to rise, we’re seeing more sellers begin to test the waters,” said Scott Hi-gashi, president and CEO of Locations. “Active listings for both single-family homes and condos are at their highest levels since March 2012 and November 2011, respectively.”

Months of Remaining Inventory (MRI) for both single-family homes and condos also increased, pushing both to 3.3 months. MRI is the amount of time it would take for all current inventory to sell if no new inventory be-came available. A balanced market is considered to have six months of remaining inventory.

Higashi also noted that competition—as measured by percentage of bid-ups—for single-family homes was greatest among homes priced between $500,000 and $749,000, while condos priced between $250,000 and $499,000 generated the most competition. However, bid-ups have decreased overall from record-highs last year.

Market areas that have seen especially high demand in the past 12 months include Ewa, Mililani and Pearl City-Aiea. These market areas have high bid-ups, very low Days on Market and very low Months of Remaining Inventory, for both single-family homes and condos. With median prices in these areas hovering around Oa-hu’s overall single-family home and condo median prices, these market areas are particularly attractive to first-time homeowners.

While rising interest rates are beginning to impact the purchasing power of first-time homebuyers, the num-ber of active listings in entry-level price points has also increased—creating more options and easing competi-tion for buyers in these price points. As interest rates are expected to rise again as in the second half of the year, buyers should get prequalified and be prepared to act quickly when the home of their choice becomes available. Future homeowners are also encouraged to partner with a knowledgeable REALTOR® who under-stands the nuances of Oahu’s many and varied neighborhoods.

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About Locations As the state’s oldest and leading independent real estate firm, our trusted Neighborhood Experts have served Ha-waii’s families since 1969. For nearly 50 years, Locations has helped more people buy or sell their homes than any other real estate firm in the state. With our rich kama’aina roots, innovative technology and dedicated market-research department, Locations continues to be at the forefront of this ever-changing industry. With nearly 300 agents and five offices across Oahu and one on Maui, our Neighborhood Experts live where you live. Through our non-profit, the Locations Foundation, our agents and staff support more than 100 Hawaii non-profit organizations both through monetary donations and volunteer hours. Visit LocationsHawaii.com/about-us today to learn more. For up-to-date Hawaii real estate updates, follow Locations on Facebook at: www.facebook.com/LocationsHawaii, Twitter at @LocationsHI, Instagram at @LocationsHawaii, and LinkedIn at www.linkedin.com/company/locations-hawaii. Read the Locations blog at: www.LocationsHawaii.com.