Hawaii Kai and Oahu Real Estate Sales Statistics for September, 2009

The Honolulu Board of Realtors has released sales figures for September, which show a positive trend upward.

Total number of single family sales for the island were 244, compared to 215 in Sept. 2008. Median sales price was $600,000, vs. 590,000 a year ago. Total sales for the first nine months on Oahu were 1,788, a decrease of 16.2% over 2008. Median price year-to-date was $575,000 for single family, a decrease of 8%.

For the condo market, 345 sales recorded in Sept., compared to 305 last year. Median sales price for the condos was $305,000, vs $296,000 a year ago. Total sales of condos for the first nine months on Oahu were 2,338, a 26.32% decrease from last year. Median price was $300,000, a decrease of 7.7% from 2008.

Lawrence Yun, chief economist for the National Association of REALTORS®, provided the following
commentary on Oahu's housing market:

"Home sales in 2009, to-date, were essentially at a 10-year low. One reason for the much lower sales can be explained by stricter mortgage underwriting guidelines. In addition, Hawaii suffers from the credit freeze that is taking place in the jumbo market and for second home purchases. However, the biggest reason for such low sales activity is likely due to fear of further home price declines.

"Consumer psychology appears to be decisively turning for the better as the housing market has been showing signs of bottoming, if it is not already past a bottom point. Affordability conditions are now at multi-year highs thanks to lower home prices and very low mortgage rates on conforming mortgages.

"The first-time homebuyer tax credit is also helping. It is no surprise, therefore, that home sales have begun to rise nationally for 5 straight months. The increases were beyond the normal seasonal uptick in spring and summer."

These statistics from the Board do not reflect sales for new construction, but only existing properties.

For Hawaii Kai, 25 single family homes sold in September with a median sales price of $830,000, compared to 7 sales last year, and a median price of $665,000. Year-to-date, 127 homes have sold in Hawaii Kai, vs. 121 last year. In 2009, median price has been $766,000 vs. $830,000 last year.

For condos, 21 sales closed in September vs. 15 last year; the median price hardly changed, $510,000 in 2009 vs. $511,000 in 2008. Year-to-date, 133 condos have sold, with a median price of $489,000, vs. 152 sales in 2008, and a median price of $541,500.

Inventory has declined from a year ago. There were 74 single family homes active in Hawaii Kai in September, vs 101 last year, and 46 condos vs. 59 last year.

Island-wide, median sales prices have risen for single family homes from $539,500 in January to $600,000 in September; for condos, there has been no change, $305,000. Median days on market has decreased for single family from 71 in January to 54 in September; condos from 59 to 51.

There are many positive signs in the Hawaii Kai and Oahu real estate markets. For a more detailed review of the September or year-to-date sales, or for a community analysis, please contact me for an in-depth report.