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.