Oahu Real Estate Market Returns to Competitive Conditions

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Anne Cicero

Locations

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Oahu Real Estate Market Returns to Competitive Conditions

Single-family home sales strong in October

HONOLULU – (November 5, 2019) – Locations—Hawaii’s leading real estate firm—published its Oahu Residential Real Estate Report for the 12-month period ending October 2019. This is a comparison to the previous 12-month period ending October 2018: Single-family home sales were strong in the month of October, rising by 11 percent over the previous year; however, sales over the past 12 months were three percent below the previous 12-month period. Condo sales were also strong in October – five percent above October 2018 – however, over the past 12 months, condo sales are seven percent below the previous year.

At $789,000, the median single-family home price increased by one percent over the past 12 months, while the median condo price was flat at $425,000. New listings are up six percent for single-family homes and five percent for condos over the previous year. Months of Remaining Inventory (MRI), or the number of months it would take for all active listings to sell if no new homes came on the market, rose slightly for both single-family homes and condos, to 3.6 months and 4.3 months, respectively. MRI of less than six months is indicative of a seller’s market.

“As we anticipated, competitive market conditions have been ramping back up for a few months now,” said John Connelley, principal broker at Locations.

“October was a particularly strong month, as low mortgage interest rates, along with years of pent-up demand, pushed up sales.” For the second month in a row, Manoa was the best-performing single-family home market for the 12-month period ending in October.

With just 17 Days on Market, Manoa is the swiftest market area on Oahu. There are few purchase opportunities in Manoa, with only 33 homes for sale. As a result, one in five homes are bid up over asking—a 13 percent increase over the previous year. Median prices for Manoa single-family homes were flat at just over $1.2 million—the second most expensive market area on the island.

The Ewa condo market, which also includes townhomes, offered favorable conditions for both buyers and sellers in October, with a stable median price of $510,000—a one percent increase—and an increase in Days on Market from 13 days to 21 days. Bid-ups on Ewa condos also dropped by 38 percent, to one in five condos bid-up over asking.

“While active listings are still up island-wide, in more than half of Oahu market areas there are fewer homes for sale than a year ago” Connelley said.

“Listings are especially low on the west side and in Mililani, a reflection of strong buyer demand for entry-level single-family homes,” he added. Connelley also noted that because market conditions can differ greatly from one neighborhood (or section of a neighborhood) to another, it’s important to consult a Realtor® who has access to detailed market statistics and trends.

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About Locations

As the state’s oldest and leading independent real estate firm, our trusted Neighborhood Experts have served Hawaii’s families since 1969. For 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. Today, Locations has over 400 agents across the state with five offices on Oahu, one on Maui and four on the Big Island (Clark Realty). 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/news.