HONOLULU (HawaiiNewsNow) - Locations – Hawaii's trusted leader for the most current, accurate real estate data – published its Oahu Residential Real Estate Report for September 2016. The report, which analyzes sales activity for more than 350 Oahu neighborhoods, concludes that the residential real estate market is increasingly competitive compared to the same month last year.
Competition is at an all-time high. In September, 33% of home sales and 25% of condo sales were bid-up over asking price, creating continued escalation of the median price for both homes and condos.
Historically low inventory and high demand continue to drive prices upward. The September median sale price is $742,500for homes and $385,000 for condos, up 3% and 5% respectively from a year ago
The market is moving very fast with homes and condos selling much faster than last year. In September, homes went into contract in just 18 days.
Inventory for sale is shrinking. With 945 home listings and 1,361 condo listings available for sale, September 2016 marks a low point compared to the same month in the past couple years. The number of homes and condos available for sale has remained at historically low levels since 2012. Low inventory is one of the main factors driving the competitive market.
Months of Remaining Inventory (MRI), also called Absorption, is a good relative indicator of supply and demand. MRI basically says, if no new listings came on the market, the available properties for sale would sell out in over 3 months. Low MRI is another indicator of the competitive Oahu real estate market.
More homes and more condos are being bid-up over asking price than ever, which is certain to continue to push prices higher. In September, 33% of homes sold and 25% of condos sold were bid-up over asking price.