As housing prices climb on Oahu, expert describes how to build equity

HONOLULU (HawaiiNewsNow) - Locations – Hawaii's leading real estate firm – published its Oahu Residential Real Estate Report for September 2017. The report, which analyzes sales activity for more than 350 Oahu neighborhoods, concludes that Oahu home values continue their steady climb into fall, with condo median prices tied for the highest median price on record and Days on Market remaining at near-record lows.

The Oahu median condo price hit $425,000 in September, tying for the highest condo median on record. The same median price was reached in July 2017, just two months ago. Prices continue to rise in 2017 over previous years. Homes are selling faster than ever. The median days on market for Oahu homes hit 16 days – sellers are accepting offers in just over 2 weeks.

With prices rising steadily for the past several years, home equity is on the rise all across Oahu. Homeowners who purchased a home more than five years ago could have $150,000 or more in home equity.

"One of the primary benefits of homeownership in Hawaii is that home values continue to increase over time. Homeowners who purchased a single-family home at the median price in 2012 or before could now have $150,000 or more in home equity," says Scott Higashi, President and CEO of Locations.

"In our current market, the combination of still very low interest rates and home equity built over time is allowing move-up homeowners to find the home that best suits their needs. However, homeowners need to be prepared to act quickly when they find the home of their choice. Half of all single-family homes sold in less than 16 days in September. A bright spot for condo buyers is that there were more condos for sale this summer than last summer."

The Oahu median condo price reached $425,000 in September, tying for the highest median price on record. The same median price was reached in July 2017, just two months ago. Home prices in September reached $761,000, a 3 percent increase from last year. Prices are continuing to rise in 2017 over previous years.

Sales are strong and increasing across Oahu. In 2017, both single-family home and condo sales hit their highest point in more than a decade. Time to sell is dropping significantly in 2017, with Days on Market for both single-family homes and condos at or near-record lows. Low Days on Market is an indicator of competitive real estate market conditions and strong demand. Condo inventory for sale has increased in 2017, welcome news for future homeowners. There are more condos for sale this summer than last summer. When inventory is low, sales are constrained and competition for available properties increases.

Months of Remaining Inventory, also called absorption, is at record lows in 2017, the tightest supply conditions in more than 10 years. If no new properties came on the market, the existing supply would sell out in less than 3 months. Months of Remaining Inventory is also an indicator of the supply-demand balance.

Bid-ups are the percent of sales sold for over asking price with multiple offers. An indicator of demand and rising prices, bid-ups are holding steady at peak highs into the fall of 2017.