Honolulu Housing Slows in a Few Key Metrics
Honolulu’s housing market has seen a decline in the number of closings and new listings in single-family and condo submarkets; but median prices continue to rise, sellers are getting a larger percentage of their asking price, inventory is shrinking and the median number of days on market is low. This seller’s market should continue to see more of the same in the near future. Low inventory usually translates to price escalation (which we are seeing), but single-family price increases are slowing. This could force sellers to become more negotiable.
The number of new listings in July fell 11.9% from July 2015 and the number of closings fell 4.5% during the same period. In July, the median number of days on market remained at 16 between July 2015 and July 2016. The median sales price was $746,000 in July, 5.1% higher than July 2015’s $710,000 and sellers are getting a little more of the listing price. In July 2015, sellers received 97.3% of the original listing price, and in July 2016, sellers received 99.6%, rising 2.4%. Although this submarket has a high median sales price point, there is significant competition amid low inventory (sellers are a bit shy and patient) and sellers are getting more of their listing price.
New listings fell 13.9% between July 2015 and July 2016 and the number of closings are down 11.4% during the same period. The median number of days on market fell 25% between July 2015 and July 2016, going from 24 days to 18 days. Median sales price jumped 14.3% from July 2015’s $350,000 to July 2016’s $400,000 and the percentage of original listing price received rose 2.6 % from July 2015’s 97.5% to July 2016’s 100%. The condo submarket is the largest in terms in the number of closed sales and new listings; this submarket remains a hot one despite the median sales price rising almost three times as fast as single-family prices.
Honolulu Board of REALTORs. Monthly Housing Statistics July 2016
Written by Ari Meier