Jan 2015 Market Update
Key Factors: Inventory and Lending Will Drive 2015 Housing Market
The first set of statistics for 2015 were released by the Honolulu Board of REALTORS® this week showing prices continuing to rise, though the number of closed sales during the month were down compared to January 2014.
When asked what factors are driving the market this year, Kalama Kim, REALTOR® and Principal Broker at Coldwell Banker Pacific Properties, talks about low inventory.
“Even though pending and closed unit sales dropped during the month of January, the low levels of inventory has kept prices moving upward,” Kim says. “Many buyers have offered and lost out on properties to purchase because of the level of competition caused by low inventory. That experience may motivate buyers to make higher, stronger offers on other properties.”
Of course, with fewer homes on the market, the demand from buyers has been very strong.
“Lack of new construction has been a challenge for the last decade and has not kept up with the population growth,” Kim adds. “This leads to fewer options for buyers and less inventory overall.”
Looking forward to other factors that may influence housing on Oahu in 2015?
“The lending industry, including the mortgage interest rate and underwriting flexibility,” says Kim. “If mortgage interest rates stay low and lenders are more lenient in lending money, it is likely it will have a significant positive affect on the housing market.”
Sales of Single Family Homes and Condos | January 2015
Source: Honolulu Board of REALTORS®
Source: Honolulu Board of REALTORS®
The number of single-family homes that closed in October was up with 298 sales closed in October, as compared to 290 in the previous year — up 2.8%. Year-to-date sales volume figures are up 1.8% — meaning that even though 2013 was a record year, 2014 could be even better. Stats show sales volume to be brisk in the condo market as well. For October, 448 condos closed escrow — a 6.9% increase over last year when 419 units closed. And condo sales for the year are also up .2%.In the Ewa Plain, the most recent stats show an astounding 62 single-family homes and 35 condos closed escrow. Twenty-six single-family homes closed in Kailuaand 21 in Makaha.
On the North Shore, 17 homes closed — a two-year record high for the neighborhood. Wahiawa’s 10 closed sales ties the two-year high — as well as a two-year high for median prices in the neighborhood at $550,000.
Median Sales Price of Single Family Homes and Condos as of October 31, 2014Source: Honolulu Board of REALTORS® 
The number of closed sales were down in January as compared to January stats from a year ago. Single-family home closed sales were down 14.6%, from 246 in January 2014 to 210 last month.Condo sales volume was also down 7.7%, from 310 during the first month of 2014 to 286 last month
Pending sales in both categories were down as well. The low inventory of available homes, as has been the case for the past twelve months, will continue to influence the number of closed sales. In some cases, inventories are extremely low — Mililani, Wahiawa, and Kalihi are particularly depleted, according to Kim.
Yet, it may indeed be the lack of inventory, attributing to the lower number of sales, which are pushing prices upward.
This month’s hottest markets include neighborhood’s where sellers received 100% (or more) of their original asking price.Single-family markets that remain hot:
- Ala Moana-Kakaako: 119.6%
- Kaneohe: 100.1%
- North Shore: 100%
- Wahiawa: 101%
- Ewa Plain: 102.5%
- Kailua-Waimanalo: 100.8%
- North Shore: 100%
For a closer look at neighborhood-by-neighborhood trends in your area, or to see which neighborhoods on Oahu are hottest, contact Neaulani a neighborhood specialist at Coldwell Banker Pacific Properties.
