Showing signs of life
POSTED: Friday, July 03, 2009
There was a glimmer of hope for the residential real estate market on Oahu as June home sales showed a slight jump compared with a year ago, according to the latest statistics from the Honolulu Board of Realtors.
A total of 254 homes were sold in June, up 9.5 percent compared with June 2008, when 232 homes changed hands.
The June median home price was at $569,000, down 9.0 percent from June 2008. It was, however, a slight 3.5 percent uptick from the median price in May.
Condo sales, on the other hand, dropped 17.3 percent to 293 in June, at a median price of $310,000. The condo median price was down 5.3 percent from a year ago but up slightly from May.
“;We don't want to seem overly optimistic, but it looks like we could be nearing the bottom of the current market slump,”; said board President Sandra “;Sam”; Bangerter.
Board economist Harvey Shapiro characterized the jump in home sales as a seasonal spike, given that many people buy and sell during the summer.
The sales speed, or number of days on the market for both homes and condos, in June was 45, the lowest this year, for both categories.
In January, homes sat on the market for a median of 71 days, according to Shapiro, and for condos the median was 59 days.
Inventory levels on Oahu also continue to remain low. In June there were 1,700 single-family homes on the market, down 18.3 percent from the 2,080 homes a year ago.
Last month there were 2,381 condos on the market, down 11.4 percent from 2,687 a year ago.
“;People are sitting on the sidelines waiting to see what's going on,”; said Shapiro. “;I think the attitude now is, if you don't have to sell, you don't.”;
Still, interest rates this week were at historically low rates of about 5.0 percent or lower for 15- and 30-year fixed mortgages.
Shapiro says he's not sure whether there's a turnaround in the market yet.
“;It looks like we're near bottom or even past it,”; he said.
For the first six months of this year, 1,107 homes have been sold, a 21.7 percent drop from the same period a year ago. Total condo sales through June were recorded at 1,380, a 36.1 percent decrease from last year.
Homes in the metro, Diamond Head and East Oahu neighborhoods continued to command higher median prices in June, while the lowest prices were recorded on the Leeward Coast.
Total sales volume generated for the first six months of the year was $1.23 billion, down 37.8 percent — or $744.8 million — compared with $1.97 billion a year ago.
Times have been tough for real estate agents on Oahu, whose board membership ranks have shrunk by about 10 percent in Honolulu this year compared with last year. Statewide, the Hawaii Real Estate Commission saw license renewals drop 21 percent this year.
Jim Wright, chief executive of Century 21 All Islands, said many part-timers have dropped out of real estate. He lost about 100 agents but still has a core of 350.
The company closed four offices last year, leaving it with 10 in the state. But sales volume has been improving over the last three months.
“;This is a seasonal spike,”; he said of June's home sales numbers. “;When you come into the fall and winter, it's going to fall back down again.”;
More real estate-owned foreclosures are also going to drive price points down, according to Wright. He doesn't expect Hawaii's market to hit bottom until the second quarter of 2011.
Still, he expects to weather the recession.
“;We're finally through the red and starting to hit a balance again,”; said Wright. “;We really had to contract the organization and get it in line. We know we're not out of this for a couple of years, but at least we'll be here at the end of the day.”;
NEIGHBORHOOD WATCH
Oahu single-family home and condominium resales data for June by neighborhood, with the change from last year:
| SINGLE-FAMILY HOMES | |||||
| No. | Neighborhood group | Sales | Pct. change | Median price | Pct. change |
| 1 | Moanalua-Kalihi | 11 | -21.4% | $600,000 | 21.5% |
| 2 | Honolulu | 12 | 33.3% | $730,000 | 7.4% |
| 3 | Kapahulu-Diamond Head | 15 | 66.7% | $780,000 | -1.3% |
| 4 | Waialae-Kahala | 7 | -12.5% | $1,387,500 | -4.0% |
| 5 | Aina Haina-Kuliouou | 3 | 0.0% | $790,000 | -2.5% |
| 6 | Hawaii Kai | 15 | 0.0% | $750,000 | -13.8% |
| 7 | Kailua-Waimanalo | 20 | -37.5% | $712,500 | -5.3% |
| 8 | Kaneohe | 19 | 72.7% | $619,000 | -3.9% |
| 9 | Windward Coast | 9 | 50.0% | $670,000 | -1.2% |
| 10 | North Shore | 7 | 250.0% | $873,000 | -54.9% |
| 11 | Wahiawa | 3 | -25.0% | $345,000 | -2.1% |
| 12 | Mililani | 17 | -39.3% | $570,000 | -9.1% |
| 13 | Makaha-Nanakuli | 18 | 50.0% | $282,000 | -32.2% |
| 14 | Ewa Plain | 49 | 11.4% | $458,000 | 3.3% |
| 15 | Makakilo | 10 | 150.0% | $487,500 | -29.3% |
| 16 | Waipahu | 27 | 92.9% | $520,000 | -10.0% |
| 17 | Pearl City-Aiea | 12 | -29.4% | $555,000 | -18.1%
|
| CONDOMINIUMS | |||||
| 18 | Moanalua-Salt Lake | 13 | -23.5% | $247,000 | -17.7% |
| 19 | Kalihi-Palama | 4 | -55.6% | $300,000 | -4.8% |
| 20 | Downtown-Nuuanu | 25 | 4.2% | $340,000 | -27.4% |
| 21 | Ala Moana-Kakaako | 25 | 19.0% | $400,000 | -2.4% |
| 22 | Waikiki | 43 | -43.4% | $235,000 | -19.7% |
| 23 | Makiki-Moiliili | 41 | -24.1% | $320,000 | 6.3% |
| 24 | Kapahulu-Kuliouou | 11 | 10.0% | $435,000 | 7.0% |
| 25 | Hawaii Kai | 19 | 46.2% | $426,000 | -29.0% |
| 26 | Kailua-Waimanalo | 10 | 0.0% | $392,500 | -22.7% |
| 27 | Kaneohe | 13 | 18.2% | $365,000 | -8.3% |
| 28 | Windward Coast | 1 | N/A | $700,000 | N/A |
| 29 | North Shore | 2 | -33.3% | $217,500 | -27.5% |
| 30 | Wahiawa | 0 | N/A | N/A | N/A |
| 31 | Mililani | 27 | -6.9% | $280,000 | -23.3% |
| 32 | Makaha-Nanakuli | 5 | 25.0% | $122,000 | -24.2% |
| 33 | Ewa Plain | 17 | 6.3% | $270,000 | -4.0% |
| 34 | Makakilo | 4 | -42.9% | $212,500 | -29.6% |
| 35 | Waipahu | 13 | -45.8% | $235,000 | -16.9% |
| 36 | Pearl City-Aiea | 20 | -25.9% | $283,500 | -0.5% |
Source: Honolulu Board of Realtors
HOME SALES
The number of homes sold on Oahu in June with the median price and percentage change from the same month last year:
| HOMES | |
| SALES | |
| June 2009 | 254 |
| June 2008 | 232 |
| Change | +9.5% |
| MEDIAN PRICE | |
| June 2009 | $569,000 |
| June 2008 | $625,000 |
| Change | -9.0% |
| CONDOS | |
| SALES | |
| June 2009 | 293 |
| June 2008 | 355 |
| Change | -17.3% |
| MEDIAN PRICE | |
| June 2009 | $310,000 |
| June 2008 | $327,500 |
| Change | -5.3% |
Source: Honolulu Board of Realtors
