Hawaii Real Estate Market At A Glance

Stabilizing Sales May Signal A Buying Opportunity

The Honolulu Board of Realtor's August Statistical Report has been released and the market continues to stablize which may signal the bottom of the market.

The report shows that there were 8 fewer single family home sales than last year( 247 vs 255) and 4 more condo sales as compared to prior year( 351 in 2009 vs 345 in 2008). Thus, no significant change in total unit sales vs prior year.

Median Sales Prices were below prior year for both single family homes and condos. $566,000 for single family homes as compared to $635,000 during the same month in 2008 while condos dropped by $38,000 from $290,000 to $328,000.

Since we are seeing a leveling of unit sales and prices continue to drop this may indicate that we are approaching the bottom of market and the end of Stage 4 of the Real Estate Cycle. Here is a breakdown on the 4 Stages.

Stage 1 - Unit Sales Flat, Prices Flat or Down

Stage 2 - Unit Sales Up, Prices Up

Stage 3 - Unit Sales Down, Prices Up

Stage 4 - Unit Sales Down, Prices Flat or Down

Stages 4 and 1 represent the best time for Buyers to purchase real estate since home values will be on the bottom of the median price curve and buyers can reap the rewards when prices go up again.

The average days on market for August was 48 days for single family homes and 51 days for condos. This represents a balanced market for both Buyers and Sellers.

There were 6.5 months of remaining inventory for single family homes and 6 months remaining for condos. 6 months of remaining inventory also represents a balanced market to Buyer's and Sellers.

Take advantage of opportunities in this balanced market, by hiring a knowledgable, experienced Realtor with specific neighborhood and market knowledge to assist you in identifying these opportunities.

- Dwight Ellis, Realtor Associate