HONOLULU (HawaiiNewsNow) - Locations – Hawaii's leading real estate firm – published its 2017 Year-End Oahu Residential Real Estate Report. The report, which analyzes sales activity for more than 350 Oahu neighborhoods, concludes that Oahu home values will continue to rise in 2018, while housing supply in all but the highest price ranges will be insufficient to meet demand.
Single-family home median prices reached an all-time high for the 5th year in a row, with an increase of three percent to $760,000. Condo median prices also reached a record high for the 5th consecutive year, with an increase of five percent to $410,000. Sales were higher than expected in 2017, up seven percent for both single-family homes and condos over 2016.
New listings for both single-family homes and condos increased in 2017 but were quickly absorbed; Months of Remaining Inventory dipped to just 2.2 months for single-family homes, while condo inventory increased only slightly to 2.6 months. Days on Market dropped to just 18 days for single-family homes and condos in 2017—a decrease of five percent for single-family homes and 10 percent for condos. Half of all sellers accepted offers in less than three weeks last year.
"As we reflect on our market data for 2017, it's clear that our current market cycle is behaving differently than previous Oahu housing cycles," says Scott Higashi, President and CEO of Locations. "In previous cycles, we've seen five to seven years of lower sales and flat median prices, followed by three to five years of sharply increasing sales and a strong upswing in prices. However, we're now entering Year Nine of our current cycle, and sales and prices have continued their steady march at stable rates of five to six percent each year—which is good news for current and future homeowners alike."
"Our research suggests that an increase of about five percent for single-family home median prices is likely this year, which would bring the median to just under $800,000 by the close of 2018. We anticipate condo median prices will rise by six percent to $435,000 by the end of this year. Low inventory, particularly in the affordable to moderate price ranges, will constrain the number of sales as well as sharp increases in median prices. Future homeowners should partner with a knowledgeable REALTOR® to gain an advantage in this competitive market environment."