Buyer's Blog Update 7/1/2021
Oahu’s Current Housing Market
Once you and/or your significant other have committed to buy a home, have agreed upon the most important features in the home you are looking for, and are confident you can execute an exit plan if your plans unexpectedly change, understanding the current market is critical. You may already be aware the Oahu’s housing market is extremely tight. Here is a summary of May’s sales statistics:
The May median price for single-family homes set a record at $978,000 (22.7% higher than May 2020) and for condos was $457,750 (14.7% higher than May 2020). Demand for both single-family homes and condos remains extremely strong. 63.3% more single-family homes sold in May compared to last year and 135.4% more condos sold. Pending sales of single-family homes in May were 80.8% higher and pending sales of condos were 158% higher than last year. The lack of inventory is driving prices significantly higher. There is currently only 1.2 months of single-family home inventory and 2.3 months of condo inventory.
How does this crazy market factor into your strategy? If you must have a single-family home, realize the listing price is likely the lowest price a seller is willing to take unless you are buying at the high end of the market (single-family homes above $2 million and condos above $700,000). Inventory around the median sales price is so tight, that you must make sure you can afford to pay $100,000 or $200,000 over asking and cover the down payment if the house does not appraise. You will likely be competing against cash offers and offers with a significant down payment. Many sellers are accepting the highest offer with an appraisal clause.
Not all condo and townhouse complexes are experiencing the same market, yet the most popular are. It is critical to understand the competitive landscape within the complexes that meet your needs.
Hiring an experienced buyer specialist with the right tools improves your chance you will successfully buy a home that meets your needs. Contact us if you are ready to take the next step. We can tailor searches for you on our state-of-the-art website and help you make a compelling offer and guide you through the transaction.