As we had predicted a couple months ago, the Oahu housing market finished the year very strong. In December, there were 306 Single family sales, which was up 12.5% from last year. For the year, there were 3051 sales, compared to only 2690 sales in 2009.
Condo sales did well too, though December was down by 9 sales compared to December '09, the 2010 total was up 10.3% to 3934 condo sales on Oahu.
The median price of Oahu homes was also up to $587k in December, compared to $555k at the same time last year. That is a 5.8% increase, and year over year, the prices were up 3.1% to $592,750. I would say that all over Oahu, prices were steadily rising all year and continue to do so now.
Oahu condo prices had a $303k median, up just 0.2% since last year. Not entirely sure why condo prices didn't do as well as homes, though I would gues that there were a lot of foreclosures on Ewa Beach condos.
December Pending Sales: This number is the best predictor for the following 2 months, and the number was looking strong, with 234 pending single family sales, which is up 20% from last December.
Pending sales of condos were up 25.1% to 329. A pretty huge increase, which means January and February should be very strong as well.
Days on Market: It took just 36 days to sell a house on Oahu in December, and 42 days to sell a condo. Those numbers are just slightly up from last year, which may mean the market is a tad slower.
Average percentage of list price received: The average Oahu home seller got 95.6% of the list price, and condo sellers got 94.4%. Roughly the same as last year. This is a great indicator of what buyers think the market is doing. When this number is low, buyers are trying to get a great deal because they believe the market is falling. At 95% or better, it means buyers are anxious to buy.
Inventory of Oahu real estate - Down 10% to 1301 homes while Oahu condos are down to 1874, a 3.7% decrease. There continues to be a decline in available homes. Every buyer I am working with is having a hard time finding a home they like. A lot of the inventory right now is junk - needing total renovations just to be livable. If you have a nice condition home, it should sell quickly unless it's way overpriced.
Bottom line is that Oahu real estate is still looking strong for 2011. The only variable right now is interest rates. Hopefully they stay low, but they can't stay this low forever. In fact rates are up from the low 4's to about 4.75% right now. Which, by the way, is still ridiculously low.