It seems that prices are still continuing to rise in the residential housing market here. As we begin to come upon the "busy season" of sales, there are some interesting trends to note as we compare last years statistics to this years.
The median home price for single family homes has risen again to $725,000 from last years $700,000. That's a 3.6% rise. Last year at this time the median home price had risen 7.2% from the previous year....could we finally be slowing down? The end of the year statistics will show us a better picture, so stay tuned for that in the months to come.
The median home price for condo/townhome's also rose to $385,000 from $380,000, respectively. That's only a 1.3% increase from last year, compared to the rise of 4.5% from the previous year.
The mood of uncertainty is apparent here as we trudge through this election year. It has been proven in studies that real estate markets throughout the world take a certain "downturn" during an election year, specifically one's where the outcome is more unknown and also when the winning candidate receives less than 55% of the vote. (That part remains to be seen come November) With that being said, it's still very interesting to see how strong our market remains. Yes it's slowing down for the time being, but it's still rising!
Another interesting fact that I found in our market is that right now, in March of 2016, 99.3% of single family home owners (sellers) are getting asking price or above on the sale of their homes. And 98.7% of condo/townhome sellers are getting their asking price as well. I often times have buyers from the mainland ask if prices are "negotiable"... Well there's your answer folks; no they're not! (although, there are exceptions: certain price ranges, area's, and condition of homes are a few.)
Inventory is down this year (Not surprising! See paragraph above regarding election year.) -25.1% for single family homes and -26.7% for condo's. So, when inventory is down (number of homes for sale), but sellers are still getting their asking prices (which indicates no shortage of buyers), guess what I will talk about next?....
If you guessed "Days on market" then you guessed right! With low inventory and lots of buyers, you get what we endearingly call a feeding frenzy. This is when there are multiple offers on a single house/condo. Survival of the fittest is at stake now and the buyer with the best agent working for them, will likely be the survivor in this game. If the buyer has an agent who is knowledgeable about these situations, they will have the upper hand and come out with a happy client if they make creative use of the purchase contract. Median days on market for SFH was 18, condo's were 19 respectively. Last year the median for both was 21 days. Keep in mind this is the MEDIAN (middle of the road, if you will). In certain price ranges that are accessible for most buyers ($500-$600K SFH and $300-$400K condo's) a place can get multiple offers in a matter of hours!
I've had many buyers who shop on Zillow to find their home before calling me or ask for a showing appointment. Here in Hawaii, we've had some issues with the site (Zillow). Misinformation and old listings are the biggest problems that we encounter. Alohatony.com continuously updates as the HBR (Honolulu Board of Realtors) MLS does. So you will always get accurate information here.
Call me, Chelsea for personalized real estate representation if you'd like to get in on the exciting real estate market here on Oahu. (808) 754-6000 or email me: firstname.lastname@example.org
Chelsea Pferschy RS#76072