Oahu home sales continue slump
Median prices remain close to 2007 levels for both homes and condominium units
STORY SUMMARY »
While Honolulu's overall real estate market last month could only best be described as lackluster, it did produce a few headline-grabbing sales.
The number of sales slid substantially last month, but most Honolulu neighborhoods maintained median prices at 2007 levels and some -- buoyed in part by high-end sales from the international market -- even came out ahead.
Buyers had the greatest selection of inventory to choose from since Augusts 2006. And sellers were able to take advantage of market activity created by historically low interest rates and a weakened dollar.
A renovated Kailua beachfront estate fetched $22 million from an international investor last month, marking the largest single-family home purchase on Oahu since 2006.
Home sales
The number of homes sold on Oahu in January with the median price and percentage change from the same month last year:
Homes
| Sales |
| January 2008 |
228 |
| January 2007 |
263 |
| Change |
-13.3% |
| Median price |
| January 2008 |
$600,000 |
| January 2007 |
$600,000 |
| Change |
No change |
Condos
| Sales |
| January 2008 |
324 |
| January 2007 |
418 |
| Change |
-22.5% |
| Median price |
| January 2008 |
$324,000 |
| January 2007 |
$320,000 |
| Change |
+1.3% |
Source: Honolulu Board of Realtors
FULL STORY »
Honolulu's residential real estate market kicked off the New Year in a holding pattern, which actually compared well to the ongoing slump in many mainland markets.
During January, sales continued to slump but prices, which came in around 2007 levels, stayed stable, according to data released yesterday by the Honolulu Board of Realtors.
While it's anyone's guess if current price levels will hold, many real estate experts have said they expect continued weakening in the U.S. dollar, falling interest rates and a healthy selection of inventory should continue to create activity in the market.
"We continue to be fortunate that sales prices on Oahu are being maintained at 2007 levels," said Dana Chandler, newly elected president of the Honolulu Board of Realtors.
"The first couple months of each year are historically slow in the housing market, but there are many buying opportunities for Oahu properties as demand has dwindled."
Last month the number of single-family home sales dropped 13.25 percent and condominium sales fell 22.5 percent compared to January 2007 levels. And, in terms of pricing, it might as well have been last year.
There was no change in the $600,000 median price paid to purchase a single-family home and the $324,000 condominium median reflected only a scant 1.3 percent gain over January 2007. As a result, the total dollar sales volume generated in the housing market for January was $345.5 million, a decrease of 6.3 percent, or $23.4 million, compared to the $368.9 million produced one year ago.
Still, it's a healthy market for realistic buyers and sellers, said Chason Ishii, president of Coldwell Banker Pacific Properties.
"We had a really strong January," Ishii said. "We closed lots of sales and we participated in several high-end transactions including a $22 million sale, a $7 million plus sale and several other multi-million ones."
Harvey Shapiro, research analyst for the Honolulu Board of Realtors, said that if mortgage rates continue to trend downward, it will make financing for those who can qualify much less costly.
Also, the weaker dollar could attract new demand from overseas purchasers, Shapiro said.
Ishii said buyers have the best selection that they have had since August 2006.
"This is the largest number of new listings coming onto the market since that time," Ishii said. "We're seeing great fresh inventory that's nicely staged and in many cases has been improved."
