HONOLULU (HawaiiNewsNow) - Scott Higashi, President and CEO of Locations LLC, stopped by on Sunrise for an update of the local real estate market.
October sales records show inventory of homes on sale continuing to shrink. Low inventory is one of the main factors driving the competitive market. Inventory has remained near historically low levels since 2012.
Prices continue to rise in this year over previous-year levels. The October median sale price of $740,000 for single family homes and $397,000 for condos are up 3 percent and 7 percent, respectively, from a year ago.
The market is also moving very fast with homes and condos selling much faster than October 2015. The medial home for sale goes into contract in just 21 days and it's just a day more for condos.
It's a simple economic principle that competition drives price. And it applies for the housing market. As competition increase, more homes and condos are bid over the asking price as median prices are pushed upward.
Sales are anticipated to slow as we approach the holiday season. After the summer months, there are fewer new listing and the number of days on the market a house or a condo stays increases.
More affordable areas on Oahu are experiencing strong upward price pressure. For homes, bids increasing in Makiki, Ewa-Kapolei, Mililani and the Pearl City-Aiea neighborhoods. For condos, Salt Lake, Ewa-Kapolei, Makakilo and Mililani are seeing upticks in bids.