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Hawaii Real Estate Indicators
A QUARTERLY REPORT ON THE REAL ESTATE INDUSTRY
THIRD QUARTER 2022
(inserts from the latest edition)
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September 5,2022
Financial Market News
Traders continue to assess market data before the FOMC meeting at the end of the month to see how far the central bank will go in its battle against inflation. The thinking is that the more positive the economic figures, the less the Fed will have to worry its aggressive hiking cycle will trigger a downturn. Today’s potential highlight was the latest ECB decision, which yielded a 75-basis point rate hike, as well as ECB head Lagarde’s press conference shortly after. Domestically, Fed Chair Powell is also scheduled to speak alongside Chicago Fed President Evans. Weekly jobless claims were released, registering at 222k. Later this morning brings Freddie Mac’s Primary Mortgage Market Survey and July Consumer Credit.(@ Chrisman). It remains anticipated that the Fed will make two more rate hikes this year, including a projected .75 bump in September.
Interesting Information for Buyers
When interest rates rise, alternative mortgage programs have more relevance for buyers. ARMs and buydowns have entered our discussions, as well as creative options for using seller credits (!). It’s not a buyer’s market yet, but we can certainly see the trend evolving hiking cycle will trigger a downturn. Today’s potential highlight was the latest ECB decision, which yielded a 75-basis point rate hike, as well as ECB head Lagarde’s press conference shortly after. Domestically, Fed Chair Powell is also scheduled to speak alongside Chicago Fed President Evans. Weekly jobless claims were released, registering at 222k. Later this morning brings Freddie Mac’s Primary Mortgage Market Survey and July Consumer Credit.(@ Chrisman). It remains anticipated that the Fed will make two more rate hikes this year, including a projected .75 bump in September.
Interesting Information for Buyers
When interest rates rise, alternative mortgage programs have more relevance for buyers. ARMs and buydowns have entered our discussions, as well as creative options for using seller credits (!). It’s not a buyer’s market yet, but we can certainly see the trend evolving. |
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for a 2022 monthly Report on |
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| The inventory on Oahu ~ still at low levels thru the 2nd quarter of 2022... |
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January 17, 2022
Active Housing Market Continues to Sizzle:
Oahu continues to be a hot housing market with trends that demonstrate the positive vibes of today’s homebuyers
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The median price of a single-family home in Oahu was more than $1 million for six straight months.
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n December 2021, the median house price was 55% more than one year ago, coming in at $1,060,000.
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Condo units were up 7% over that same time period, with a median price of $485,000.
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60% of single-family homes and almost 40% of condos sold above the asking price.
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Houses sold at a median rate of 12 days and condos were snatched up in 14 days.
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| The arrival of COVID-19 put the housing market into a tailspin...but not for long. |
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| Homeowners gained $3.1 trillion in home value due to rising prices. The total |
| worth of US homes was $32.4 trillion in January, up 10% from a year earlier. |
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| Median home sale prices hit $330,500 in January; the biggest annual gain during |
| a given month since 2013. |
Honolulu Home Prices Bid Up To Near-Record Levels
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The long-awaited recovery of Hawaii’s real estate market continued last month, with higher bids pushing up median resale prices of single-family homes on Oahu. Honolulu Board of Realtors® President Tricia Nekota called the trend a “seemingly new normal of buyers entering bids tens of thousands of dollars over asking price.”
Recent sales data released by the Honolulu Board of Realtors® indicated the new median high of $872,500 was nearly a 10% increase over the $794,750 reached in November 2019. The new price mark was also the second-highest ever behind the record of $880,000 set in September.
Most current sales are at the high end, with 80% of last month’s sales involving houses priced at $700,000 or more, and the median time between listing and sale only ten days. |
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| April 21,2022 Mortgage Rates Exceed Five Percent
Mortgage rates increased for the seventh consecutive week, as Treasury yields
continued to rise. While springtime is typically the busiest home buying season, the
upswing in rates has caused some volatility in demand. It continues to be a Seller's
market, buy buyers who remain interested in purchasing a home may find that
competition has moderately softened. @2022 by Freddie Mac |
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Sellers Gobble As Mainland, Local Home Prices Break Records
Even though sellers took time off for Thanksgiving, median home prices for mainland properties increased 16% year-over-year during November to $322,828–the highest on record. Locally, home prices hit a new median high of $872,500.
Other key housing market data* during November 2-29 included:
Active listings fell 29% from 2019 to a new, all-time low.
* Source: Redfin.
Home Purchase Sentiment Declines Slightly
After three months of positive outlooks, Fannie Mae's Home Purchase Sentiment Index (HPSI) slipped 1.7 points last month. This brought the overall HPSI to 80.11
When respondents were asked about their current attitudes about buying or selling a home, potential buyers and sellers saw the current market differently.
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The number of respondents who thought it was a good time to buy dropped from 60% to 57%. Respondents who felt it was not a good time to buy remained at 35%.
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Respondents who felt that now was a good time to sell remained at 59%, while those who disagreed decreasing by 2 points
When asked about property prices, respondents expecting higher prices ticked up 1 point to 41%, while those who expect prices to fall dropped 7 points to 13%. Those who don't expect prices to change soon increased from 31% to 35%.
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What this means for home sellers:
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Now is the time to sell, while the market is strong. Properties are selling quickly and getting top dollar.
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If you’re selling to buy another property, you want to do that before the real estate market rises to its
next peak.
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An experienced Locations LLC agent can make sure your property is priced correctly in this active
market, so
that it will attract the most offers.
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Not sure what your home is worth? Get a free market analysis today of what your home can sell for.
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Email your trusted Locations LLC professional today ~ Jim@MoreHawaii.com
What this means for home buyers:
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For buyers today, the market is very competitive at all price levels.
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The Oahu real estate market is a very different environment than it was a few years ago, even a year ago.
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To place a competitive bid, buyers need to be pre-qualified.
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Homes are selling fast, so buyers need to stay on top of new listings. You can receive special alerts when
a new home that
meets your criteria comes on the market. Use the power search at Locations LLC and
save your search to sign up for
personalized email alerts from our neighborhood experts.
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At Locations LLC, our agents receive special training on competitive markets and how to win the sale in
multiple offer
situations. Let them help you successfully buy the property you want.
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In the Overall Oahu Market...
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| A balanced market is generally characterized by 6-10 months of inventory remaining... |
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~ Take advantage and call Real Estate Specialist Jim More (R) CRS at (808) 222-3949 ~ |
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