'Historically low' inventory continues to drive up home prices - Hawaii News Now - KGMB and KHNL

'Historically low' inventory continues to drive up home prices

(Image: Hawaii News Now/File) (Image: Hawaii News Now/File)
HONOLULU (HawaiiNewsNow) -

Oahu's housing market is getting downright cutthroat. 

A new Locations survey found "historically low" housing inventory on Oahu continued to drive up prices in September. And when houses do go on the market, they're not there long.  

The median price for a single-family home on Oahu last month was $742,500, up 3 percent from the same month last year, the survey found. The median price for a condominium was up 5 percent to $385,000. 

The Locations real estate report looked at sales data for 350 Oahu neighborhoods. 

Perhaps the most depressing finding for would-be homeowners: About one-third of home sales and 25 percent of condo sales were bid-up over asking price "creating a consistent escalation of the median price for both homes and condos." 

Homes are also selling faster. In September, homes went into contract in just 18 days, from 22 in the same month last year.

Strong demand and low supply is being blamed for the situation. 

The survey found that the number of active home listings in September on Oahu was down 9 percent from last year. The number of active condo listings was down 10 percent.

"With record low inventory and high demand, Oahu’s real estate market remained fiercely competitive in September 2016,” said Scott Higashi, president and CEO of Locations, in a news release. “As a buyer, preparation and the ability to move quickly and confidently are critical. We recommend getting pre-qualified with a reputable local lender and securing an agent who has proven experience in the competitive market. It is also important to shop at a price point that gives you the opportunity to compete with other buyers.” 

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