HONOLULU (HawaiiNewsNow) - Locations – Hawaii's leading real estate firm – published its Oahu Residential Real Estate Report for October 2017. The report, which analyzes sales activity for more than 350 Oahu neighborhoods, concludes that Oahu home values continue to steadily rise, with strong sales for both single-family homes and condos, and low Days on Market compared to a typical October market.
Sales of both single-family homes and condos were strong in October, with an increase of seven and 14 percent, respectively. Median prices ticked up slightly for single-family homes and condos over last year, at two and one percent, respectively. Low Days on Market for single-family homes bucks the typical seasonal trend upward. The median days on market for Oahu homes in October was just 16 days.
New Listings for both single-family homes and condos are up by 12 percent – welcome news for future homeowners. However, while New Listings continue to be up over last year, the number of overall Active Listings is not rising much, as the increase in listings is absorbed by higher sales.
"While October is traditionally a slower season for real estate, we saw a healthy uptick in sales of both single-family homes and condos last month," says Scott Higashi, President and CEO of Locations. "Single-family homes sold in just 16 days, which is especially brisk for autumn. Days on Market was particularly short across the more affordable price bands. Sellers of higher-end inventory, such as condos priced above $700,000 and single-family homes priced above $1 million, can expect properties to remain on market a bit longer."
"Strong sales, coupled with low Days on Market, indicates that buyer demand remains high. Nearly one in three single-family homes and one and in four condos sold above asking price in October. Interest rates are still very low, giving prospective homeowners – especially first-time homeowners—more purchasing power."
Median prices in October 2017 ticked up slightly over last year, with the median single-family home price up 2% to $760,000, and the median condo price up 1% to $402,000. Prices are continuing to rise in 2017 over previous years. Sales are strong and increasing across Oahu. In 2017, both single-family home and condo sales are hitting their highest point in over 10 years. Time to sell is dropping significantly in 2017, with Days on Market for both single-family homes and condos at or near record lows. Low Days on Market is an indicator of both competitive real estate market conditions and strong demand. Condo inventory for sale has seen welcome increases in 2017; good news for buyers. The number of active condo listings has been above last year's count since the beginning of summer. Low inventory constrains sales and increases competition for available properties.
Months of Remaining Inventory (MRI), also called absorption, is at record lows in 2017, the tightest supply conditions in more than 10 years. If no new properties came on the market, the existing supply would sell out in less than 3 months. MRI is an indicator of the supply/demand balance.
Bid-ups are the percent of sales that are bid up over asking price in competitive bidding. An indicator of demand and rising prices, Bid-ups are holding steady at peak highs into the fall of 2017.