Hawaii Real Estate

Everyone knows that there are bank owned properties out there in Hawaii.  I have heard that there are perhaps hundreds of bank owned properties or REOs (Real estate owned) properties out there on Oahu just waiting to come onto the market.  It has been the big shadow overhanging the market.  People have been expecting that these properties may come on the market all at one time just adding tremendously to the inventory and crashing prices.  Every state in the country has been worried about this, but especially those hardest hit with foreclosures:  Florida, California, Nevada, and Arizona.  So let us face the fear.  The fact is that there are no regulators that are forcing these banks to dump these properties on the market.  So if no one is forcing them to put these properties on the market, will they put them on the market now?  Perhaps not.  And more importantly perhaps not all at one time.  If the foreclosures have been kept back from the market, the banks think that the real estate prices will not only stabilize, but rise across the country.  They are more likely to gain much more by waiting and not flooding the market with inventory.  So, the longer we do not see vast numbers of REOs coming onto the market, the more people should see that there is more room on the upside with prices.  I believe that when the banks feel that the market is strong enough that they may see a possible time to make gains from their losses they will put a measured amount of their inventory on the market.  I do not believe, unless forced by regulators, that they will flood the market and depress prices further.

The Honolulu Board of REALTORS® released resale figures today for the month of February. According to the analysis conducted by the Board, using data collected from its computerized Multiple Listing Service (MLS) system, the statistics are:

During February, sales of 129 single-family homes and 160 condominiums were reported through the Board’s MLS, decreases of 20.9 percent for single-family homes and 50.2 percent for condominiums, compared to the same month last year. This brings total single-family home sales on Oahu to 251 for the first two months of 2009, a decrease of 35.8 percent over the same time period one year ago. Total condominium sales through February were 319, a 50.5 percent decrease from last year. The median prices paid for island properties in the first two months of 2009 were $550,000 and $300,000, respectively, decreases of 8.3 percent for single-family homes from the same time period in 2008 and 9.1 percent for condominiums. The total dollar sales volume generated in the housing market for the first two months of this year was $280.5 million, a decrease of 53.1 percent, or $318.0 million, compared to the $598.5 million produced one year ago.

“While sales in Oahu residential housing have slowed, the median prices have remained steady unlike many markets in the Mainland,” said Sandra “Sam” Bangerter, President of the Honolulu Board of REALTORS®. “Fortunately, we have don’t have the overabundance of inventory that is threatening most of the Mainland markets and the sizable number of properties that went into pending status during February proves that there continues to be a demand for our residential dwellings.”

The public is encouraged to visit the Board’s Internet web site at www.HiCentral.com to see what’s happening in the housing market. The public has the ability to search through Oahu single-family home and condominium listings, available for sale and for rent, and to see a comprehensive guide of homes that will be open to visit this Sunday. All searches can be done by geographic location, price range or both. HiCentral.com provides useful information about buying and selling real estate in Hawaii.

Established in 1922, the Honolulu Board of REALTORS® is one of the largest of 1,600 boards of REALTORS® in the nation and, with over 6,000 members, the largest trade organization on Oahu. Membership is available to licensed real estate brokers, agents, property managers, appraisers, counselors and others engaged in all aspects of the real estate industry pledged to adhere to a strict Code of Ethics and Standards of Practice. For more information, call (808) 732-3000 or visit www.HiCentral.com.

(This report reflects information about resales of existing properties only and does not include new home sales. All of the MLS information is compiled from sales reported during the cited months; this data is known only after closing of escrow. The time delay between the signing of a sales contract and the closing of escrow is usually between one and three months.)

October 1, 2008

Honolulu median home prices and sales decline

Today, the Honolulu Board of REALTORS® released resale figures for the month of September. According to the analysis conducted by the Board, using data collected from its computerized Multiple Listing Service (MLS) system. You can find the full report here