Hawaii Real Estate Archives - Page 7 of 7 - Richard Cricchio's Hawaii Real Estate Blog

Oahu Neighborhood Market Update: August 2013

A new real estate report from the Honolulu Board of REALTORS is out, this time focused on the month of August. The Board, using MLS data, is providing great insight into the improving Hawaii real estate market by specific neighborhood. The highlights are below but you can access a detailed report on any neighborhood by clicking the neighborhood name. For the full report, including summaries, click HERE .

Neighborhood	2013 Sales	Price Increase Over 2012	Sale Price as a % of Listing Price	Average Days on Market
Aina Haina – Kuliouou
Single Family Homes	55	7%	100.0%	13
Condos	4	30%	98.8%	25

Ala Moana – Kakaako
Single Family Homes	2	*	*	*
Condos	286	10%	101.2%	30

Downtown – Nuuanu
Single Family Homes	62	1%	95.1%	31
Condos	244	20%	95.3%	31

Ewa Plain
Single Family Homes	385	12%	99.0%	17
Condos	225	5%	97.6%	15

Hawaii Kai
Single Family Homes	122	12%	99.5%	22
Condos	141	8%	100.4%	14

Kailua – Waimanalo
Single Family Homes	211	12%	97.8%	15
Condos	63	8%	101.9%	9

Kalihi – Palama
Single Family Homes	60	-2%	95.7%	25
Condos	64	16%	100.0%	18

Kaneohe
Single Family Homes	139	3%	98.6%	25
Condos	125	3%	99.5%	14

Kapahulu – Diamond Head
Single Family Homes	134	6%	101.2%	14
Condos	79	9%	97.9%	28

Makaha – Nanakuli
Single Family Homes	114	5%	94.0%	42
Condos	84	13%	89.6%	33

Makakilo
Single Family Homes	101	0%	100.0%	20
Condos	62	4%	96.1%	16

Makiki – Moilili
Single Family Homes	68	7%	100.8%	31
Condos	372	6%	98.5%	20

Mililani
Single Family Homes	162	4%	100.0%	15
Condos	174	4%	99.5%	16

Moanalua – Salt Lake
Single Family Homes	41	9%	101.5%	29
Condos	117	8%	98.7%	17

North Shore
Single Family Homes	65	-4%	94.9%	37
Condos	30	30%	98.8%	53

Pearl City – Aiea
Single Family Homes	157	4%	96.4%	23
Condos	193	6%	100.0%	15

Wahiawa
Single Family Homes	49	6%	92.2%	11
Condos	9	29%	93.5%	40

Waialae – Kahala
Single Family Homes	68	13%	102.6%	24
Condos	31	7%	95.8%	40

Wiakiki
Single Family Homes	1	*	*	*
Condos	747	-7%	95.4%	32

Waipahu
Single Family Homes	134	9%	98.3%	21
Condos	147	6%	101.9%	12

Windward Coast
Single Family Homes	27	27%	86.5%	49
Condos	12	4	95.3%	51

*The number of transactions in some neighborhoods is so small that information about increases in price and so on is not meaningful.

How Are Prices Faring in YOUR Neighborhood?

Some interesting information regarding Oahu housing prices is out this week from the Honolulu Board of REALTORS(r). They’ve broken down price increases – July 2013 over July 2012 – by individual neighborhood for condos and single family homes.

The news is generally very good, with double digit increases in median prices in many neighborhoods. This is consistent with the national trend over the same period and underscores the solid recovery that is taking place.

Here are the numbers for single family homes by neighborhood (how are you doing?):

Clearly, there havre been big increases on the Windward Coast, in Waialae-Kahala and Makaha-Nanakuli. A couple of anomolies are evident as well. Note the big decrease in median price in Ala Moana-Kakaako. This is not significant because only 2 single family homes have sold and closed in the neighborhood this year. And the $0 median price for Waikiki in July, 2013, is because . . . well, there were no single family home sales closed in Waikiki that month! It was all condos! In the first seven months of 2012, only one single family home sold in the neighborhood.

Now let’s take a look at the same information for condominiums on Oahu:

Once again, the huge increases on the North Shore and in Aina Haina – Kuliouou are not really significant. On the North Shore only 24 condos were sold through July 2013, 17 through July 2012; in Aina Haina – Kuliouou only 2 condos were sold during the first seven months of both 2012 and 2013. However, the 26% increase in Makaha – Nanakuli is based on significant numbers of closed sales as is the 22% increase in Downtown – Nuuanu.

The data is certainly interesting, but much more information is needed to really understand what’s happened to the value of your own home. When you contact Help-U-Sell Honolulu Properties, we will do a thorough analysis of your home, your neighborhood, the local market and trends to give you an accurate idea of what your home might sell for in this great real estate market.

Oahu Market Update: July 2013

Wow! What a market we are building here on Oahu. All housing metrics are improving, improving, improving . . . to the point that our real estate market is almost running at optimal pace! Take a look at the latest report from our MLS, comparing July 2013 with last July:

July 2013 Oahu Housing Stats Gains in closed sales and price increases have been solid over the past year. And an 8.2% rise in average prices for both condos and single family homes is great news! Let’s look at these numbers in a little more detail.

July 2013 Oahu Housing Report Details

Once again, the stats reveal across the board improvement. I want to pull out four of these key metrics to illustrate graphically. I believe these will demonstrate the strength of the current market and a basis for continued optimism. Note that in these graphs, Single Family Homes are indicated by the Blue line, Condos, by the Red. First, numbers of closed sales:

July 2013 Oahu Closed Sales Graph

Solid improvement: especially when you consider that back in Feb of 2012 we closed just 227 Condos and, a month earlier, just 175 Single Family Homes! Equally impressive is the graph showing increases in Sales Price as a % of List Price. Basically, this indicates how far down from List Price sellers had to come to make a sale:

July 2013 Oahu Price Gains Graph

Since October we have had a steady increase in this metric, gaining about 4% in what sellers received in offers. Why, last month, all of our closed condo listings were for full list price! As everything has picked up, the average days on market for a listing has fallen:

July 2013 Oahu Median Days On Market Real Estate

Last month it took just 17 days to sell a home, 20 to sell a condo. Finally, let’s take a look at months of inventory currently for sale in the MLS:

July 2013 Oahu months of real estate inventory graph

This number is derived by dividing the number of active listings in MLS by the current rate of sale. What it’s telling us is, at the current rate of sales, we have enough Single Family Homes on the market to last 2.8 months. Two years ago, the number was hovering at about 6 months. That’s a tremendous improvement!

Interest rates have stabilized at about 4.3% – up from a low in May of about 3.4%. As I said, they’ve ‘stabilized’ there, but we do expect them to continue a slow rise through next year, probably settling in in the 6% range. Translation: If you’re thinking about buying, this is not the time to hesitate! Give us a call today and let’s get started!

2013 Oahu Price Gains

We’ve been watching prices for single family homes and condos climb in Hawaii and on Oahu in particular this year. Now, with half a year behind us, the numbers are impressive. Specifically, here are the gains in year-to-date median prices for single family homes (January-June), 2013 vs 2012:

HIStats-2b

With the exception of a couple of anomalies, we have nice gains in most of the Island. Here is a detailed breakdown of the same information:

HI1

The picture is also good for condominium owners who have seen similar increases:

Again, the details for condominiums:

HI2

A one percent increase in interest rates over the last month has had a slight impact on local market activity, slowing things just a bit, but in the last week rates have begun to ease back a bit and I don’t anticipate any major pull-back in the market. It remains an excellent time to sell and to buy.

Buying After A Short Sale? Why Wait!

Hawaii homeowners are breathing a little easier today. Point your ear out your front door and listen: you may hear a sigh of relief! Prices are rising – like crazy in some areas- and fewer homeowners are upside down on their mortgages. The median sale price on Oahu has risen $88,500 since January! So, today’s local real estate market is no longer about ‘how much am I losing?’ but rather about ‘how much equity am I building?‘ Almost anyone who bought a home in the past year is probably grinning from ear to ear!

But what about those who didn’t make it through the downturn? What about those who lost their equity, found themselves upside down and, suddenly, needing to sell? They pretty much had four options:

Move and let the home go to Foreclosure
Negotiate a Short Sale with the lender
Forget about selling and rent the house
Sell and write a check at closing to the lender for the shortfall

Thankfully, not too many people opted for that last option – though it did happen in situations where the shortfall was small and the need to sell great. And those who successfully rented their property are probably enjoying a nice increase in value now. People who chose Short Sale or went to Foreclosure, however, have the same question: how long before I can buy again?

First, understand that the answer is a moving target: it has shifted over time and probably will continue to shift. There are also no hard and fast answers as different lenders have different policies and some lenders will bend a bit if interest rates and discount points are high enough. However, today, the following is typical:

To get a Conventional Loan after a Short Sale:

Two-year wait with a 20 percent down payment
Four-year wait with a 10 percent down payment
Seven-year wait with less than 10 percent down payment
Conventional lenders usually look for a FICO score in the 680 range after a Short Sale

To get an FHA Loan after a Short Sale:

Three-year waiting period from the Short Sale closing date
Home buyers can get a mortgage with as little as 3.5 percent down

Eligible Veterans can get a VA Loan after a Short Sale:

Two -year wait from the Short Sale closing date
Can still get in with no money down

There is one snafu that seems to be occurring regularly as former Short Sale-rs apply for new mortgages. Sometimes the Short Sale lender reports the sale incorrectly to the credit bureaus as a Foreclosure. This can be a big problem as most borrowers with a Foreclosure on their credit reports must wait seven years before becoming eligible for Conventional Mortgages.

If your last sale was a Short Sale, it is important to keep all of your paperwork from that transaction handy in case you have to prove that it wasn’t a Foreclosure. It’s also not a bad idea to access your credit report before you begin the buying process to see how the Short Sale was reported.

At Help-U-Sell Honolulu Properties, we are expert at helping buyers with battle-scars get into housing. And this is not the time to hesitate! Waiting now may leave you priced out of the market. Even if you don’t fit the profiles presented above, contact us to learn what it will take to get you back into a house today.

Oahu Real Estate Market Update: June 2013

2013 continues to be an improving year for Hawaii real estate, with numbers of sales and prices on the rise. This is good news for Oahu homeowners who suffered through the doldrums of the last several years.

After a dip in February to 207 closed sales, we have rebounded to our June high of 307. Houses are selling!

Probably of more interest to Hawaii homeowners is the rise in prices over the first six months of the year. Since January, the median price of sold listings has risen $88,500 to the June high of $678,500!

At the same time, the number of available homes for sale has risen steadily. It appears that homeowners, after years of waiting in the wings, have decided that this is a good year to sell. In June there were more than 300 homes on the market than there were in January.

The only area of concern right now is a sudden rise in Days-on-Market – the number of days it takes to sell a home on Oahu. We’ve bumped along all year between 50 and 60 days, but in June the number rose to 81. This may be an anomaly – something that will correct itself in the months to come – or it may be an indication that inventories have finally reached a point where buyers have a large enough selection from which to choose to allow them to take their time.

While not quite as dramatic, the news for the Hawaii Condominium market is also good.

After a spike in March, the number of closed condo sales has fallen back but continues to improve compared to the first of they year. Last month about 100 more condos were sold than in January.

After a dip in the first quarter, the median price for condos has risen dramatically and now stands at $355,000, about $6,000 higher than in January.

And, as with single family homes, condo inventories have continued to increase. There is a good selection of condos on the market now and with an uptick in construction, more are on the horizon.

For home seller: this is a good time to be on the market. Prices are rising and houses are selling. For buyers: this is not a time to hesitate. Not only are prices rising, interest rates are also on the way up. Every month that passes means less house that you can afford. Start that dream-home hunting project today by calling Help-U-Sell Honolulu Properties at (808) 377-1200.

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We Believe In

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