Aiea, Hawaii (PressExposure) July 11, 2011 -- Our Oahu May figures showed again, a mixed bag of signals, sale volume decreased by -15.3% for single family (SF) and -10.3% for condos (CND), a trend that has been establishing for the past few months. Seems the sales rate is slowing thus signs that the market is stagnating again. Median prices were mixed with a - 0.8% increase in SF price to $595,000, and a moderate drop of -4.9% for CND to $290,000.
Inventory continues to decline rapidly with a -10.8% drop and a -8.7% drop in SF and CND units respectively. Days on market increased to 31 days (+14.8%) SF, and an increase to 36 days (+28.6%) CND.
Interesting statistic to watch is the surge in pending sales for this month, up 22.2% for SF and up 44.3% for CND. The summer surge may be at hand and the market may show some large positive numbers in June and July. The months supply of inventory? Down 8% and 2.2% so tightening of supply even with moderate demand will still create a more pent up market. Our forecast is that the market will continue to deplete the supply of inventory and although we don't see a feeding frenzy as in a "seller's market", all the ingredients are there for one to take place. We are still experiencing multiple offers for well priced properties, but buyers are tentative in chasing the market upward. The Oahu unemployment rate is still low and getting even lower, and demand remains strong.
One of the markets I follow is the Ewa market, mainly as an indicator since that seems to be one of our weakest markets with the most short sales and foreclosures. Here are the numbers for Ewa. Overall, new listings are down by -17.5%, units sold are up +9.7%, and inventory is down -21.5%. The median price is up +4.8%SF, but down -19.1% CND; inventory is down -20.6% SF, down -23.1% CND. Now those numbers paint a compelling picture....this is our "weak market" area and yet we see a moderate decrease and increase in price, a decrease in inventory and new listings, and an increase in units sold. That does not sound like a weak market any longer!
Remember....."All real estate is local", so you need to drill down to individual markets to see what's going on. Click here to get individual reports by neighborhood to see what's going on in specific areas you are interested in.
As always....If you are thinking about buying or selling a home, please
give us a call, we'll be glad to assist you. Statistics provided by the Honolulu
Board of REALTORS