Thank you very much for your support this year! It’s a huge honor to be nominated for this award, since it can only happen from my clients!
Real Estate
Ho! Ho! Hoooomes Continue Up! How Far Can This Trend Go?!
Happy holidays everyone! I hope you are finding yourself happy & healthy as we enter the end of 2016 and into 2017! I can’t believe this is my last post for 2016 already…these years fly by! Speaking of flying, November stats continue to show a “flying” real estate market here on the island, and it doesn’t look like it’s slowing down heading into December. Let’s take a look at the numbers…
Yup, median prices are up, closed sales are up, and days on market are down. All signs continue to point to a strong Seller’s market, as inventory continues to fall. Some of the biggest changes occurred in the number of closed sales with both homes and condos up 19.5% and 17.6% respectively, over last year. We continue the trend in 2016 with more properties selling than coming on the market.
Condos also showed a 13.7% jump in median price over last year, while single-family homes rose 4.8%. In dollars, that’s roughly a $34,000 jump in homes and $48,000 in condos. I think the rise, especially in condos is due to more higher-priced units selling (due to the lack of inventory). The average sales price of condos sold rose 11.4%, which further enforces my feeling.
So what’s in store for December and heading into 2017? Well, it’s pretty obvious that low inventories continue to drive a competitive market here on O‘ahu. Properties are also selling faster despite the holiday season approaching, indicating that Buyers are still aggressively shopping in the market. It doesn’t seem like it’s slowing down any time soon!
I’ll continue to monitor the numbers, especially as President-elect Trump takes office. The Fed has already indicated a rise in bank rates next week, and possibly again through 2017 to offset inflation. Most experts are indicating a rise in mortgage rates to the mid-four percent range, so if you’re on the fence to purchase something, this may be a better time than waiting!
Have a good finish to 2016, and I hope you have a great start to 2017!
ALOHA!
Nick
The Market is Gobble-Gobble-Gobbling Homes!
Hi Guys & Gals, I hope your holidays are kicking into gear and 2016 is finishing strong! The Kawakamis are all preparing for a busy season, and it seems that the market is following suit!
Homes, both house and condo, continue to fly off the market as inventories continue to drop and days-on-market fall. Median prices for condominiums increased by 7% over last year to $396,000, while single-family homes increased by 3.1% to $742,000. Days-on-market, the statistic that accounts for how long an available home sits on the market, dropped to 19 days for single-family homes and 20 days for condominiums. Considering these stats include the finicky multi-million dollar listings, it’s a really strong indication that things fly quickly!
So what does this mean for my clients, especially as we head into the traditionally-slower winter months? If you’re thinking about selling, there are still plenty of Buyers looking for a home. It’s my opinion that the shortage of housing throughout the summer months will give us a good group of healthy Buyers for the foreseeable future. For my clients looking to buy, there are still a lot of great opportunities, especially with these low interest rates. If you’re even considering purchasing something in the next couple of years, keep an eye on those interest rates! With a new president coming into power, and an sensitive bond market, it will be interesting to see how rates react.
Happy Thanksgiving everyone! Looking towards to the end of the year, I hope everyone has a safe holiday season!
Nick
Kapiolani Residence Announces Market Units!
With the successful completion of their affordable release, Korean developer Samkoo has just released the market-priced units for its newest development, the Kapiolani Residence. Located on the makai-side of Kapiolani Blvd, and across the street from 24-hour fitness, the Kapiolani Residence is a 484-unit building geared for people looking for a low-cost, no-frills style of living.
A quick-look at the market pricing shows 1-bedrooms starting at $486,500. Since these are market-priced units (and not a part of the affordable program), buyers only need to qualify under the following specs:
(1) Is a citizen of the United States or a resident alien;
(2) Is at least eighteen years of age;
(3) Is domiciled in the State of Hawaii and will physically reside in the unit to be purchased;
(4) Has a gross income suffcient to qualify for the loan to finance the purchase
If you qualify, and are interested in this project, let me know and I will hook you up with a bunch of information to get you started!
Home sales flatten, but condos still ablaze! 🔥🔥👍
Happy October Everyone, and happy beginning-of-holiday-parties season! It’s crazy to think we are here already, and I hope you are all gearing up for Halloween and other fun things as we close out 2016! The stats for September 2016 are out, and here’s my take on the local market…
Single-family homes saw a stall in growth versus last year, as the number of closed sales remained the same. It’ll be interesting to watch this number as we end the year, and see if the trends continue “normal.” We did see a slight bump in median prices versus last year, but it remains inline with the growth of the overall year. The “outlier stat” for September single-family homes was the days-on-market (DOM), which has remained at 16 days for the third straight month. Usually in September, we start to see a little longer DOM, but not this year!
As for condos, number of sales climbed for the third month in a row and rose 6.7% versus last year. It’s hard to predict where condos will go month-by-month, because their production is so heavily tied to market factors and the products vary so greatly. In fact, median price is down versus last month, while last September saw a bump versus that August. DOM are back up to 20, and look for that to shorten again as less new inventory came on the market.
Like I said, it will be interesting to see how the year will fill out. There some factors that seem to follow market trends, and some that don’t. I’m also going to be watching the election results to see if that has any affect on our little island home as well!
Happy Halloween everyone, and a quick note of love to my friends and family in Florida! Hurricane Matthew sucks, but we are here if you need us!
Low Inventory Means a Bump in Prices & Faster Sales
Hope everyone is enjoying this beautiful weather, as we end summer and welcome fall, haha! One day it’s pouring rain, the next is sunny and 197% humidity. Meanwhile, the housing market continues its torrential pace in 2016 as inventories continue to be slim and median prices hover around record-highs!
As our Board President Kalama Kim has stated, “During the month of August, the number of homes for sale dropped compared to last year, and it took just 16 days before the homes which sold accepted an offer. There are buyers who have been in the market for over a year because of market conditions, and run the risk of being priced out of the market as demand pushes prices up.” I don’t have any buyers like that (thankfully), but I can personally attest that the competition out there is intense!
In my opinion, the real news is that prices continue to remain high while days-on-market fall. That’s saying that Buyers are paying near what Sellers are asking, regardless of price, and locking properties into contract earlier than ever. This is even more evident when you dive deeper into the stats and see that 38% of home sales, and 27% of condo sales are bid up over asking price (the highest levels in Oahu’s history). These signs mean Buyers must be fully armed when they enter the market and Sellers have plenty of action. If you’re even thinking about buying or selling, let me know and I’d be happy to dive into your specific needs and help you navigate this crazy market!
As the Summer Finishes, Price Strength Continues
Happy August everyone, and as the mainland braces for the coming fall, we continue to see a strong sales market here in Paradise! As expected, the low inventory has restricted the number of sales last month and pushed median prices higher than last year!
While median prices dropped slightly versus our record-breaking June, both Single-Family (SF) homes and condos are up 6% and 14% over July last year. On top of that, both SF homes and condos are seeing close to 100% listing-to-sold pricing, meaning that even though Sellers are pushing prices, Buyers are willing to pay. The inventory trend will probably soften a little, especially as we enter the cooler winter season, but don’t expect to see a shift from this up market anytime soon.
Snapchat at my Open House!
Is it a sign of the apocalypse? Am I grasping at any attempt to feel young again? Will anyone even use this? Whatever the case, I know you all have been desperately waiting for…SNAPCHAT FILTERS COMING TO OPEN HOUSES! Yes, Ladies and Gentlemen, don’t turn that television dial just yet, because I have got a deal for you!
In actuality, this is merely me trying out something new. Here’s a preview of it, designed after a famous cartoon hunter…
I don’t know how it will go over at tomorrow’s open house, but I figured I should give it a shot and see how it goes! It’s more about the experience anyway, learning how the process works and figuring out applications in the business. If anyone does decide to actually use it tomorrow, then whoopdeedoo!