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Showing signs of life

Oahu home sales in June were up 9.5%, providing hope that the worst is over

By Nina Wu

POSTED: 01:30 a.m. HST, Jul 03, 2009

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There was a glimmer of hope for the residential real estate market on Oahu as June home sales showed a slight jump compared with a year ago, according to the latest statistics from the Honolulu Board of Realtors.

A total of 254 homes were sold in June, up 9.5 percent compared with June 2008, when 232 homes changed hands.

The June median home price was at $569,000, down 9.0 percent from June 2008. It was, however, a slight 3.5 percent uptick from the median price in May.

Condo sales, on the other hand, dropped 17.3 percent to 293 in June, at a median price of $310,000. The condo median price was down 5.3 percent from a year ago but up slightly from May.

"We don't want to seem overly optimistic, but it looks like we could be nearing the bottom of the current market slump," said board President Sandra "Sam" Bangerter.

Board economist Harvey Shapiro characterized the jump in home sales as a seasonal spike, given that many people buy and sell during the summer.

The sales speed, or number of days on the market for both homes and condos, in June was 45, the lowest this year, for both categories.

In January, homes sat on the market for a median of 71 days, according to Shapiro, and for condos the median was 59 days.

Inventory levels on Oahu also continue to remain low. In June there were 1,700 single-family homes on the market, down 18.3 percent from the 2,080 homes a year ago.

Last month there were 2,381 condos on the market, down 11.4 percent from 2,687 a year ago.

"People are sitting on the sidelines waiting to see what's going on," said Shapiro. "I think the attitude now is, if you don't have to sell, you don't."

Still, interest rates this week were at historically low rates of about 5.0 percent or lower for 15- and 30-year fixed mortgages.

Shapiro says he's not sure whether there's a turnaround in the market yet.

"It looks like we're near bottom or even past it," he said.

For the first six months of this year, 1,107 homes have been sold, a 21.7 percent drop from the same period a year ago. Total condo sales through June were recorded at 1,380, a 36.1 percent decrease from last year.

Homes in the metro, Diamond Head and East Oahu neighborhoods continued to command higher median prices in June, while the lowest prices were recorded on the Leeward Coast.

Total sales volume generated for the first six months of the year was $1.23 billion, down 37.8 percent — or $744.8 million — compared with $1.97 billion a year ago.

Times have been tough for real estate agents on Oahu, whose board membership ranks have shrunk by about 10 percent in Honolulu this year compared with last year. Statewide, the Hawaii Real Estate Commission saw license renewals drop 21 percent this year.

Jim Wright, chief executive of Century 21 All Islands, said many part-timers have dropped out of real estate. He lost about 100 agents but still has a core of 350.

The company closed four offices last year, leaving it with 10 in the state. But sales volume has been improving over the last three months.

"This is a seasonal spike," he said of June's home sales numbers. "When you come into the fall and winter, it's going to fall back down again."

More real estate-owned foreclosures are also going to drive price points down, according to Wright. He doesn't expect Hawaii's market to hit bottom until the second quarter of 2011.

Still, he expects to weather the recession.

"We're finally through the red and starting to hit a balance again," said Wright. "We really had to contract the organization and get it in line. We know we're not out of this for a couple of years, but at least we'll be here at the end of the day."

 

NEIGHBORHOOD WATCH

 

Oahu single-family home and condominium resales data for June by neighborhood, with the change from last year:

SINGLE-FAMILY HOMES
No. Neighborhood group Sales Pct. change Median price Pct. change
1 Moanalua-Kalihi 11 -21.4% $600,000 21.5%
2 Honolulu 12 33.3% $730,000 7.4%
3 Kapahulu-Diamond Head 15 66.7% $780,000 -1.3%
4 Waialae-Kahala 7 -12.5% $1,387,500 -4.0%
5 Aina Haina-Kuliouou 3 0.0% $790,000 -2.5%
6 Hawaii Kai 15 0.0% $750,000 -13.8%
7 Kailua-Waimanalo 20 -37.5% $712,500 -5.3%
8 Kaneohe 19 72.7% $619,000 -3.9%
9 Windward Coast 9 50.0% $670,000 -1.2%
10 North Shore 7 250.0% $873,000 -54.9%
11 Wahiawa 3 -25.0% $345,000 -2.1%
12 Mililani 17 -39.3% $570,000 -9.1%
13 Makaha-Nanakuli 18 50.0% $282,000 -32.2%
14 Ewa Plain 49 11.4% $458,000 3.3%
15 Makakilo 10 150.0% $487,500 -29.3%
16 Waipahu 27 92.9% $520,000 -10.0%
17 Pearl City-Aiea 12 -29.4% $555,000 -18.1%

 
 
CONDOMINIUMS
18 Moanalua-Salt Lake 13 -23.5% $247,000 -17.7%
19 Kalihi-Palama 4 -55.6% $300,000 -4.8%
20 Downtown-Nuuanu 25 4.2% $340,000 -27.4%
21 Ala Moana-Kakaako 25 19.0% $400,000 -2.4%
22 Waikiki 43 -43.4% $235,000 -19.7%
23 Makiki-Moiliili 41 -24.1% $320,000 6.3%
24 Kapahulu-Kuliouou 11 10.0% $435,000 7.0%
25 Hawaii Kai 19 46.2% $426,000 -29.0%
26 Kailua-Waimanalo 10 0.0% $392,500 -22.7%
27 Kaneohe 13 18.2% $365,000 -8.3%
28 Windward Coast 1 N/A $700,000 N/A
29 North Shore 2 -33.3% $217,500 -27.5%
30 Wahiawa 0 N/A N/A N/A
31 Mililani 27 -6.9% $280,000 -23.3%
32 Makaha-Nanakuli 5 25.0% $122,000 -24.2%
33 Ewa Plain 17 6.3% $270,000 -4.0%
34 Makakilo 4 -42.9% $212,500 -29.6%
35 Waipahu 13 -45.8% $235,000 -16.9%
36 Pearl City-Aiea 20 -25.9% $283,500 -0.5%

Source: Honolulu Board of Realtors

HOME SALES

The number of homes sold on Oahu in June with the median price and percentage change from the same month last year:

HOMES
SALES
June 2009 254
June 2008 232
Change +9.5%
MEDIAN PRICE
June 2009 $569,000
June 2008 $625,000
Change -9.0%
CONDOS
SALES
June 2009 293
June 2008 355
Change -17.3%
MEDIAN PRICE
June 2009 $310,000
June 2008 $327,500
Change -5.3%

Source: Honolulu Board of Realtors

 

There was a glimmer of hope for the residential real estate market on Oahu as June home sales showed a slight jump compared with a year ago, according to the latest statistics from the Honolulu Board of Realtors.


A total of 254 homes were sold in June, up 9.5 percent compared with June 2008, when 232 homes changed hands.

The June median home price was at $569,000, down 9.0 percent from June 2008. It was, however, a slight 3.5 percent uptick from the median price in May.

Condo sales, on the other hand, dropped 17.3 percent to 293 in June, at a median price of $310,000. The condo median price was down 5.3 percent from a year ago but up slightly from May.

"We don't want to seem overly optimistic, but it looks like we could be nearing the bottom of the current market slump," said board President Sandra "Sam" Bangerter.

Board economist Harvey Shapiro characterized the jump in home sales as a seasonal spike, given that many people buy and sell during the summer.

The sales speed, or number of days on the market for both homes and condos, in June was 45, the lowest this year, for both categories.

In January, homes sat on the market for a median of 71 days, according to Shapiro, and for condos the median was 59 days.

Inventory levels on Oahu also continue to remain low. In June there were 1,700 single-family homes on the market, down 18.3 percent from the 2,080 homes a year ago.

Last month there were 2,381 condos on the market, down 11.4 percent from 2,687 a year ago.

"People are sitting on the sidelines waiting to see what's going on," said Shapiro. "I think the attitude now is, if you don't have to sell, you don't."

Still, interest rates this week were at historically low rates of about 5.0 percent or lower for 15- and 30-year fixed mortgages.

Shapiro says he's not sure whether there's a turnaround in the market yet.

"It looks like we're near bottom or even past it," he said.

For the first six months of this year, 1,107 homes have been sold, a 21.7 percent drop from the same period a year ago. Total condo sales through June were recorded at 1,380, a 36.1 percent decrease from last year.

Homes in the metro, Diamond Head and East Oahu neighborhoods continued to command higher median prices in June, while the lowest prices were recorded on the Leeward Coast.

Total sales volume generated for the first six months of the year was $1.23 billion, down 37.8 percent — or $744.8 million — compared with $1.97 billion a year ago.

Times have been tough for real estate agents on Oahu, whose board membership ranks have shrunk by about 10 percent in Honolulu this year compared with last year. Statewide, the Hawaii Real Estate Commission saw license renewals drop 21 percent this year.

Jim Wright, chief executive of Century 21 All Islands, said many part-timers have dropped out of real estate. He lost about 100 agents but still has a core of 350.

The company closed four offices last year, leaving it with 10 in the state. But sales volume has been improving over the last three months.

"This is a seasonal spike," he said of June's home sales numbers. "When you come into the fall and winter, it's going to fall back down again."

More real estate-owned foreclosures are also going to drive price points down, according to Wright. He doesn't expect Hawaii's market to hit bottom until the second quarter of 2011.

Still, he expects to weather the recession.

"We're finally through the red and starting to hit a balance again," said Wright. "We really had to contract the organization and get it in line. We know we're not out of this for a couple of years, but at least we'll be here at the end of the day."

 

NEIGHBORHOOD WATCH

 

Oahu single-family home and condominium resales data for June by neighborhood, with the change from last year:

SINGLE-FAMILY HOMES
No. Neighborhood group Sales Pct. change Median price Pct. change
1 Moanalua-Kalihi 11 -21.4% $600,000 21.5%
2 Honolulu 12 33.3% $730,000 7.4%
3 Kapahulu-Diamond Head 15 66.7% $780,000 -1.3%
4 Waialae-Kahala 7 -12.5% $1,387,500 -4.0%
5 Aina Haina-Kuliouou 3 0.0% $790,000 -2.5%
6 Hawaii Kai 15 0.0% $750,000 -13.8%
7 Kailua-Waimanalo 20 -37.5% $712,500 -5.3%
8 Kaneohe 19 72.7% $619,000 -3.9%
9 Windward Coast 9 50.0% $670,000 -1.2%
10 North Shore 7 250.0% $873,000 -54.9%
11 Wahiawa 3 -25.0% $345,000 -2.1%
12 Mililani 17 -39.3% $570,000 -9.1%
13 Makaha-Nanakuli 18 50.0% $282,000 -32.2%
14 Ewa Plain 49 11.4% $458,000 3.3%
15 Makakilo 10 150.0% $487,500 -29.3%
16 Waipahu 27 92.9% $520,000 -10.0%
17 Pearl City-Aiea 12 -29.4% $555,000 -18.1%

 
 
CONDOMINIUMS
18 Moanalua-Salt Lake 13 -23.5% $247,000 -17.7%
19 Kalihi-Palama 4 -55.6% $300,000 -4.8%
20 Downtown-Nuuanu 25 4.2% $340,000 -27.4%
21 Ala Moana-Kakaako 25 19.0% $400,000 -2.4%
22 Waikiki 43 -43.4% $235,000 -19.7%
23 Makiki-Moiliili 41 -24.1% $320,000 6.3%
24 Kapahulu-Kuliouou 11 10.0% $435,000 7.0%
25 Hawaii Kai 19 46.2% $426,000 -29.0%
26 Kailua-Waimanalo 10 0.0% $392,500 -22.7%
27 Kaneohe 13 18.2% $365,000 -8.3%
28 Windward Coast 1 N/A $700,000 N/A
29 North Shore 2 -33.3% $217,500 -27.5%
30 Wahiawa 0 N/A N/A N/A
31 Mililani 27 -6.9% $280,000 -23.3%
32 Makaha-Nanakuli 5 25.0% $122,000 -24.2%
33 Ewa Plain 17 6.3% $270,000 -4.0%
34 Makakilo 4 -42.9% $212,500 -29.6%
35 Waipahu 13 -45.8% $235,000 -16.9%
36 Pearl City-Aiea 20 -25.9% $283,500 -0.5%

Source: Honolulu Board of Realtors

HOME SALES

The number of homes sold on Oahu in June with the median price and percentage change from the same month last year:

HOMES
SALES
June 2009 254
June 2008 232
Change +9.5%
MEDIAN PRICE
June 2009 $569,000
June 2008 $625,000
Change -9.0%
CONDOS
SALES
June 2009 293
June 2008 355
Change -17.3%
MEDIAN PRICE
June 2009 $310,000
June 2008 $327,500
Change -5.3%

Source: Honolulu Board of Realtors

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