In May of 2009, I called the bottom of the Hawaii real estate market, and in January through May of this year, I posted several times about the coming market rise. Well, the September sales numbers are out for Hawaii homes, and the numbers are pretty impressive.
Here are some highlights:
- There were 274 sales of single-family homes on Oahu in September, an 8 percent rise compared to last year.
- The Oahu median price of single family homes was $622,450, up 3 percent from $605,000 last year.
- The median condo sale price rose to $335,000, also an 8 percent increase from last year.
- The average home was on the market less than 30 days!
- Year-to-date, the number of sales is up by more than 20 percent!!!
My prediction for the Hawaii market going forward: prices will level off until early Spring, at which time interest rates may rise. If that happens, we will see prices drop slightly until inflation really kicks in. Then, who knows, anything can happen. Hyper inflation? Stagflation?
I could be wrong though – The University of Hawaii Research Organization earlier this month forecast that Oahu’s median home price will rise 4.4 percent this year, and continue rising between 4 percent and 5 percent in each of the next two years.