Thanks to the 4 Realtors on my team, our 5 person Client Care Team, and all our past clients, I am on the cover of the July 2022 Real Producers.
I am also happy we saved 320 sellers $4,532,220 in Real Estate commissions using our $3,500 Flat Fee Selling option.
Thanks to Chris Wirsing and the Real Producers Team too.
https://www.oahure.com/pdf/Jul_2022_Honolulu_Real_Producers.pdf#page=28
This chart shows two things well.
One is prices do not go up every year. After the sharp increase that peaked around 1991, you can see we went to 2003 before prices hit that 1991 price again, so over 10 years of prices not increasing.
Two is the current up trend is a lot steeper than it was back in 1991.
It will be interesting to see what happens next.
According to Mortgage News Daily, today’s rate hit 6.28%. I know that sounds high but check out the 18.53% rate in October of 1981.
Hopefully, inflation will start to go down without the radical increase in the interest rates that we saw in the 70s and early 80s.
Keep in mind we are more sensitive to rate increases now than back then as you can see from the chart below our rate has been very low for a long time, which drove the prices of homes high.
Active Single Family inventory is up 39.8% from a year ago.
Single Family homes from $600,000 to $999,999 sales dropped 41.2% compared to one year ago.
Two red flags that are screaming this market is changing.
This market has to slow down. It can’t sustain a 19.1% increase every year like it had this year for April.
The first quarter of 2022 closed with new record median sales prices for both single-family homes and condos at $1,150,000 and $515,500, respectively.
In March, single-family home sales fell 11.1% year-over-year, while the condo market sales volume remained strong with a 7.3% rise compared to March last year.
“More luxury sales coupled with declining affordable inventory and sales are pulling the median price upwards in the single-family home market,” said Chad Takesue, president of the Honolulu Board of REALTORS®. “It’s no surprise that rising prices are pushing more prospective buyers to consider condos, driving the steady and strong demand we’ve been seeing for these properties.”
Please see https://www.oahure.com/OahuRealEstateStatsIntro.php to view all the statistics.
The local market stats just came out today I see some areas having less closed sales and a lower median sale price. Perhaps that is a sign the market is cooling a bit which is really needed.
This survey was conducted by mortgage giant Fannie Mae.
They started this survey back in 2010, after the big 2008 housing crash.
We have been on a long-time upward slope of home prices as shown by the above graph of the Case-Shiller U.S. National Home Price Index.
2022 began with a sharp jump in both single-family home and condo sales – combined, O‘ahu’s housing market saw a 28.6% sales increase compared to January 2021. While the single-family home median sales price held steady for the third consecutive month at $1,050,000, the condo market set a new monthly median sales price record of $510,000, surpassing the previous $500,000 set in August 2021.
Single-family home sales were up 12% year-over-year, while condo sales soared 40.8% compared to this time last year. Properties continued to move at a brisk pace, with single-family homes spending a median of 12 days on the market and 14 days for condos.
“Although sales are ahead of January 2021, we’re facing low inventory and rising interest rates that may temper the unprecedented market we saw throughout last year,” said Chad Takesue, president, Honolulu Board of REALTORS®. “However, as long as low inventory, near-record low interest rates and strong demand for housing remain, we’ll continue to see fierce competition and properties move off the market at a fast pace.”
View the January stats details at https://www.oahure.com/OahuRealEstateStatsIntro.php.
The O‘ahu housing market ended 2021 with a slight decline of 10.0% in single-family home sales and a healthy 15.4% increase in condo sales year-over-year. The median sales price for single-family homes tied the previously set record in August 2021 at $1,050,000, while condos saw a median sales price of $485,000, slightly up from December 2020.
While O‘ahu’s single-family home market saw new listings, pending sales, and total inventory in escrow all drop year-over-year, the condominium market remained strong, with new listings up 13.1%, pending sales jumped 16.7% and total inventory in escrow rose 11.5%.
“It was clearly a seller’s market in 2021,” said Chad Takesue, president of the Honolulu Board of REALTORS® in 2022. “Not only did properties enter escrow at a record pace, but they often marked multiple offers and sold for a premium.”
Single-family homes were in high demand throughout 2021, but sales leveled off in the last quarter of the year as buyers faced low inventory and a slight rise in average mortgage rates since the summer and early fall.
“With high demand and dismal inventory of single-family homes, buyers turned their sights to condos, driving competitive activity in some areas and leading to low supply in this market as well. As a result, every price point in the condo market saw more sales in 2021 and every region across Oʻahu marked more sales,” added Takesue.