From the Board of Realtors:

"During June, sales of 279 single-family homes and 342 condominiums were reported through the Board's
MLS; single-family home sales experienced a 12.5 percent increase while condominium sales decreased
by 3.4 percent from June 2011. The median price paid for island properties in June was $620,000 for
single-family homes and $297,000 for condominiums, an increase of 10.2 percent and a decrease of 1.3
percent respectively, compared to the same month last year. "

The average home sold for 96.1% of the list price in just 35 days.  That's a strong seller's market, with only 3.9 months of inventory available. There are 436 pending sales, an increase of 27.9% since last year.  This means that next month's sales numbers will be even higher, and the inventory will be even lower.  

 Sales are particularly strong in East Oahu, where inventory is so low that I have multiple buyers waiting for the same  type of house for months at a time. 

It's a great time to be a seller, a difficult time to be a buyer.  But with interest rates at 3.5% right now, it makes buying much easier than the last few years, even with prices up. 

With rates down more than 2% since a couple years ago, prices would need to increase 20% to make up the difference in the payment from having lower rates.  

The beautiful Allure Waikiki has updated its price list.  There are several units still available between $714,900 up to $1,094,900.  It is a great building!

 The list is out! The Top 100 Realtors in the State of Hawaii has been published by Hawaii Business Magazine.  

The numbers are based on the dollar volume of sales in 2011. I am thankful to be named on the list for the second straight year.

This list is the only objective measure of Realtors in Hawaii.  Whatever else an agent may accomplish, being on this list says that he or she has worked very hard and had some great success closing a lot of business.  In real estate, experience counts as much as anything else.  

Thanks to all my clients for their business, and most of all thank you God for your blessings! 

Listed for sale last week for $750,000, this Aina Haina house received 7 offers over asking price! It should close in June way has now sold at $777,500, WAY over asking price.  

It's a SELLER'S MARKET.  

A great classic 1950's one story house on flat lot, with a nice big yard.  Beautiful original hard wood floors in the living room and bedrooms. 

This large family room opens to spacious
yard. Great family home in one of Hawaii's most desired school districts. See
Large prof pictures here.

Check out the beautiful original hard wood floors. 

How is the market?  5 people have asked me this question since this morning.  Of course it's common for people to ask me this, but right now I sense that many people don't see a clear direction for the market right now. 

We can look back and see that since last year prices around Oahu have risen 5% on average for all home sales on Oahu.   But where is it going? Everyone wants to know .

(I predicted the bottom of the over 2 years ago, and also predicted the top of the market in 2005.)

First some median price data from the last 12 months.

• Hawaii kai prices are down 9.9% to $819,500
• Kailua prices are up 9.7% to $850,000
• Kaneohe prices are down 1% to $577,500
• Median prices in Mililani are up 19% to $602,500
• Diamond Hear prices are down $40k to $975,000
• Ewa beach prices are up 7.4% to $475,500
• Metro Honolulu prices are down 2.8% to $699,500
• Pearl City prices are up 3.4% to $592,250
• Waipahu prices are down 0.4% to $498,000

The problem is, there are very few homes for sale, and therefore very few homes selling.  The inventory of homes available has dropped yet again, remaining at the same 5 year low we have been at since January. Since there will probably never again be any major new construction projects in Metro Honolulu or East Oahu, the inventory of homes for sale will remain low for the next few years, until there is some other major catastrophe or economic crisis.  

So I predict prices will slowly rise for the next few years, and level out when interest rates rise in 2013.  As rates rise, people will be less willing to sell their home and move elsewhere, due to the payment increase.  There will be fewer buyers but also fewer sellers. I've had dozens of my clients tell me they "can never move again" after their most recent refinance.  I'm in the same boat.  

Via PBN:
"The number of foreclosure filings in Hawaii dropped in February, with half as many properties in some phase of the foreclosure process as a year ago, according to new data from RealtyTrac    RealtyTrac Latest from The Business Journals Follow this company .

There were a total of 473 foreclosure filings — including notices of default, public auctions and bank repossessions — in Hawaii in February, or one for every 1,098 housing units.

That was 27 percent fewer than January and 50 percent fewer than February 2011, Irvine, Calif.-based RealtyTrac said."

 I've been saying for that last 3 years that the market bottomed in early 2009, and that prices would begin to rise soon. 

To illustrate that this did occur and that the market turn is now known as fact, I've created this infographic below with numerous statistics that verify the Hawaii Real Estate market has been on the upswing for over 2 years now.

People are often shocked when I tell them how strong Oahu real estate has been over the last 10 years.  Prices remain very steady and in some areas are up over the last few years, primarily due to the limited inventory of homes for sale. 

The U.S. Census showed that Hawaii's 2010 population calculations show
Oahu is growing by
200,000 between 2005 and 2030. 

If the population on Oahu grows at roughly 8-percent in the next 20 years, in 2030 the population would be around 1,1 million.  

Here is how we've grown in 1980: 

1980: 763,000

1990: 836,231

2000: 876,156

2010: 953,207.  

At this point, the island is not seeing enough new housing construction to keep up with this demand, which is why rents and home prices are so high.  In the next 10-20 years, the shortage of housing will continue to be the problem that will drive prices higher and higher.  

Grade   With Dependents      Without Dependents

E5           $1899.00           $1701.00

1289  and 1864.  That's the number of homes and condos available on Oahu, respectively.  Those are the lowest numbers since fall 2005.  The lowest number of homes available in 2006-2009 so far was 1600.  Perspective - it's only 5.4 months of inventory!

No wonder my buyers have had a hard time finding homes to buy, while my sellers have been selling quickly with multiple offers. No wonder my clients looking for a water front townhome in Hawaii Kai are having a hard time.  Usually there are a dozen to choose from, but not anymore. 

Is it the low rates? The tax credit? The economy bouncing?  Whatever it is, the inventory only proves again that Oahu is the best place to buy and hold real estate!