As Oahu home prices rise, so does the need for affordable housing
Julie Meier, the president of the Honolulu Board of Realtors, said Monday that while she isn’t surprised the median price for a single-family home on Oahu hit a record-breaking $700,000 in June, she is somewhat surprised that it has happened so fast.
A lack of inventory coupled with high demand sent home prices through the roof in June, according to the board.
Oahu has 2.8 months worth of single-family homes on the market and a condo inventory of 3.3 months, meaning that’s how long it would take to sell every property if no new listings were to come on the market.
Those numbers mean it’s a seller’s market, because a balanced market has about six month’s worth of inventory, said Meier, who’s also a Realtor with Prudential Locations.
Inventory increased by 4 percent in June, to 1,200 active single-family home listings, from 1,153 in June 2013. Condominiums fared better, with the inventory increasing 19 percent to 1,749 listings from 1,473 units listed during the same month last year.
“We do have projects in the works, but most are a long way from completion and they cater to a more affluent [clientele],” she said.
The latest figures confirm Oahu’s need for housing at the other economic spectrum, Meier said.
And Meier said that the rising home and condo prices will have a ripple effect, so expect rents to rise, too.
Julie Meier, president of the Honolulu Board of Realtors.
New report addresses Hawaii’s housing crisis, saying prices are out of reach for many
The Hawaii Appleseed Center for Law and Economic Justice released a report Wednesday on Hawaii’s “affordable housing crisis,” saying that rents increased by 45 percent between 2005 and 2012, while wages increased by just 21 percent.
Affordable housing, the report says, is defined by spending 30 percent of an income or less on housing.
That means in order to afford the $1,640 fair-market rent for a two-bedroom apartment in Hawaii, one would need to make at least $65,600 per year, or $31.54 per hour.
However, the report says that mean hourly wage for renters in Hawaiian is just $13.86.
The report notes that Hawaii residents pay the highest electric bills in the country — 37 cents per kilowatt hour, three times the national average. Housing and transportation costs combined account for 61 percent of the average income and nearly 100 percent of Hawaii “moderate income” households are “cost burdened” by these expenses.
The report goes on to say that Hawaii has the country’s highest rate of homelessness and that homeownership is out of reach for many Hawaii residents.
“A lack of affordable housing affects not only households living close to poverty— many of Hawaii’s essential workers struggling to find affordable rentals, let alone purchase a home,” the report says. “Many professionals such as teachers and police officers cannot afford fair market rent for a two-bedroom apartment, while those in the service sector earn less than half of the housing wage.”
Earlier this week, the Honolulu Board of Realtors released figures showing that the median price for a single-family home reached a record $700,00 on Oahu in May. Board President Julie Meier warned that the high home prices would have a trickle-down effect and cause rents to rise even higher.
You can check out the full report here.
Bill Cresenzo Reporter – Pacific Business News
Home Valuation
Honolulu median home price could reach $774k by 2015
Honolulu median home price could reach $774k by 2015
Bill Cresenzo Reporter – Pacific Business News
The median price of single-family home in Honolulu could rise 9.8 percent this year to surpass the $700,000 mark, according to a recent forecast from the University of Hawaii Economic Research Organization.
And by 2015, the Hawaii construction forecast by UHERO predicts a single-family home on Oahu will have a median price of $773,800.
The median price of a single-family home for all of 2013 was $647,000, while the current record for the median price of a single-family home on Oahu is $685,000, set in December and July of last year, according to data from the Honolulu Board of Realtors.
The report forecasts the median price of a condominium this year will rise 6.2 percent to $354,400, and that by 2015, the median price of a condo is forecast to hit $376,300. Oahu condo prices hit a record high in February, when the median price of a unit was $359,450, according to the Honolulu Board of Realtors.
“Moderate interest rates and further strengthening of economic fundamentals will stimulate demand for homes and drive prices upward,” the UHERO report says. “While Neighbor Islands are still waiting for a decisive upturn in residential permits, the Kakaako condo boom is leading a strong pick up in Honolulu.”
Oahu housing market continues its hot pace as single-family home and condo prices rise in March
Oahu housing market continues its hot pace as single-family home and condo prices rise in March
Bill Cresenzo Reporter – Pacific Business News
Oahu’s housing market continued on a hot pace in March, with both sales volume and prices of single-family homes up over a year ago.
Condominium prices climbed year over year, but sales volume dropped off.
The median price of a single-family home on Oahu rose to $657,000 in March, an increase of 2.7 percent from $640,000 in March 2013, according to figures released Monday by the Honolulu Board of Realtors.
The number of sales rose 6.5 percent to 246 in March from 231 in March 2013.
The median price of a condominium rose 2.9 percent in March to $350,000 from $340,000 in March 2013, but the number of sales declined 5.8 percent to 387 from 411.
“The Hawaii housing market is showing a great deal of resilience,” Julie Meier, president of the Honolulu Board of Realtors, said in a statement.
She noted that single-family homes, on average, were on the market for only 17 days, compared to 22 days a year earlier. Condos were on the market an average of 25 days.
The March numbers are consistent with findings by the University of Hawaii Economic Research Organization, which predicts that the median price for a single-family home on Oahu will hit $700,000 later this year and reach $774,000 by 2015.
Hawaii real estate outlook for 2014: Sunny with a chance of rain
Jan 22, 2014, 2:21pm HST
Duane Shimogawa Reporter – Pacific Business News
The 2014 Hawaii Real Estate Forecast on Wednesday at the Hawaii Convention Center saw the return of the “wizard,” some amazing photos of a Japan ski trip and mostly positive predictions for this year’s industry outlook.
On hand were some of the biggest names in Hawaii’s real estate industry, including panelists from Jones Lang LaSalle, Colliers International Hawaii, Ambard & Co. Commercial Real Estate, Prudential Locations and Bishop Street Commercial.
Wendel Brooks III, who recently left CBRE Hawaii to head up rival Jones Lang LaSalle’s retail operation, kicked the event off with a retail forecast that looks mostly sunny with a possibility of rain in 2014.
“Plan on delays,” he said in his presentation. “Construction will cripple parts of Oahu [and] rents will continue a slow upward trend. We have seen the bottom.”
Brooks also said that retailers and restaurants Hawaii should soon expect to see include Sonic Drive-In, Olive Garden, H&M, Bloomingdale’s, Ulta Beauty, Urban Outfitters, Sport Chalet, Dick’s Sporting Goods, DSW Inc. and Uniqlo.
Additionally, he pointed out that Hawaii should expect the expansion of retailers and grocery stores such as Safeway, Target and T.J. Maxx.
Bishop Street Commercial’s Matt Bittick took to the podium next but not before taking a “selfie” with Hawaii News Now’s Howard Dicus, who also was the moderator for the event, attended by some 700 people.
Bittick predicted that by the end of this year, the office market vacancy rate in Honolulu will hover around 13 percent, which is slightly lower than what CBRE Hawaii reported in the fourth quarter of 2013.
A year ago, nearly 15 percent of Honolulu’s office space sat empty, CBRE Hawaii said.
Whatever the case, Bittick noted that office space in Honolulu is still cheaper when compared to other markets such as San Francisco.
For Mark Ambard of Ambard & Co. Commercial Real Estate, who made sure to show the audience some of his recent Japan ski trip photos during his presentation, the industrial market will require lots of patience.
“Space is available, but not abundant [and] business growth is still relatively slow [with] current spaces often not matching current users,” he said in his presentation. “Develop now if you can find land. Rents will go up [so] tenants should lock in now. Land is gold, get now, develop now.”
From one colorful presentation to the next, Mike Hamasu of Colliers International Hawaii didn’t forget to bring his popular wizard hat to the podium.
His investment report encompassed some positive numbers for 2013 with $3.9 billion in sales, a 78 percent jump from the $2.1 billion recorded in 2012.
Led by hotel and apartment sales, the investment market is as active as it has been since the Great Recession.
And Hamasu, who jokingly mentioned that he is accepting donations for a new wizard hat, said he projects to see more of the same in the investment market in 2014.
One third of Oahu homes sold for more than asking price in 2013
Jan 21, 2014, 1:42pm HST
Bill Cresenzo Reporter – Pacific Business News
One-third of single-family homes on Oahu sold for above their asking prices in 2013, setting a record for the island, according to a report.
The previous record was set in 2005, when bid-ups stood at 23 percent.
Around 20 percent of condominiums sold for prices higher than their listing prices.
For example, a home in Diamond Head sold for $2.51 million, when the asking price was $1.98 million. A condo in Waikiki’s Island Colony sold for $244,000 when the asking price was $199,000.
“Homes that sell for more than the listing price, or bid-ups, are the surest indicator that prices will continue to rise.”
The Honolulu Board of Realtors reported earlier this month that the median price of single-family home hit $685,000 in December, which tied with the record set in June 2007.
Oahu single-family home price in December ties previous record
Bill Cresenzo Reporter – Pacific Business News
The median price of a single-family home in Honolulu in December tied its previous record of $685,000 set in July 2007, according to figures released Tuesday by the Honolulu Board of Realtors.
The figure represents a 14.2-percent increase from the $600,000 median price tag that home buyers paid in December 2012.
December also saw a dip in sales to 293 single-family homes sold, from 291 in December 2012.
“That is pretty typical for this time of the year,” said Julie Meier, president of the board of realtors. “We want to keep our eyes on the median sales price, especially for single-family homes, given that this month’s medianprice ties the market’s highest peak at $685,000.”
The median price of a condominium was $330,000, a 1.5 percent decline from $335,000 during the same month last year.
Single family homes, on average, were on the market for 22 days, while condos were on the market for 27 days.
For all of 2013, condo sales increased 11.8 percent to 4,874 units sold, from 4,361 units sold during all of 2012. The median price of a condo rose 4.6 percent to $332,000 in 2013 from $317,500 in 2012.
The median price of a single-family home for all of 2013 rose 4.8 percent in 2013 to $650,000 from $620,000 in 2012. Sales of single-family homes rose 4.6 percent to 3,312 homes sold, from 3,166 homes sold in 2012.
Oahu homes hit highest median price in five years
Jul 8, 2013, 10:23am HST
Duane Shimogawa | Reporter- Pacific Business News
Oahu’s housing market hit a new high last month with the highest median sales price for single-family homes in more than five years, according to statistics released Monday by the Honolulu Board of Realtors.
The $677,250 median price for a home in June was 9 percent higher than the $620,000 median price from the same time period last year. The previous peak was $685,000 in June 2007, which is just 1.1 percent higher than June’s figure.
The number of home sales rose 10 percent last month to 308 sales from 279 sales in June 2012.
Oahu’s condominium market also continued on its red-hot pace with double-digit percentage increases in both the number of sales and the median sales price.
In June, there were 392 condo sales, which was 15 percent more than the 342 sales in June 2012.
The median sales price of a condo last month was $330,000, an 11 percent increase from $297,000 during the same time period last year.
Home and condo sales also sold faster last month compared to a year ago with both categories on the market for a mere 20 days.
Oahu Real Estate Market Update – MARCH SALES AND MEDIAN PRICE INCREASE FOR BOTH SINGLE-FAMILY HOMES AND CONDOMINIUMS, ACCORDING TO THE HONOLULU BOARD OF REALTORS
MARCH SALES AND MEDIAN PRICE INCREASE FOR BOTH SINGLE-FAMILY HOMES AND CONDOMINIUMS, ACCORDING TO THE HONOLULU BOARD OF REALTORS®
HONOLULU — The Honolulu Board of REALTORS® released resale figures today for the month of March. According to the analysis conducted by the Board, using data collected from its computerized Multiple Listing Service (MLS) system, the statistics are:
Number of Sales | This Month Compared To | Median* Sales Price | This Month Compared To | |
March 2013 | 231 | $640,000 | ||
March 2012 | 222 | +4.1% | $625,000 | +2.4% |
Number of Sales | This Month Compared To | Median* Sales Price | This Month Compared To | |
March 2013 | 585 | $346,700 | ||
March 2012 | 338 | +73.1% | $311,750 | +11.2% |
*Median price means half the prices were above and half below the given price.
During March, sales of single-family homes and condominiums increased by 4.1 percent and 73.1 percent, respectively, from March 2012. The median price paid in March was $640,000 for single-family homes and $346,700 for condominiums, increases of 2.4 percent and 11.2 percent, respectively, compared to the same month last year. According to the Days on Market indicator, sales of both single-family homes and condominiums occurred at a faster pace last month compared to a year ago. Single-family homes were on the market for 22 days and condominiums for 15 days.
“Momentum is strong in the Honolulu market, with sales and median prices increasing for both singlefamily homes and condominiums,” said Kevin Miyama, president of the Honolulu Board of REALTORS®. “The March resale figures for condominiums were impacted by the presale of 174 units at Holomua – the majority of which listed between $299,000 and $400,000, indicating great demand for affordable housing. But even without those closed sales, the number of condo sales increased by an impressive 21.6% percent over last year.”
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 1,500 boards of REALTORS® in the nation and, with over 5,300 members, one of the largest trade organizations 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 who pledge 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.)