Market Update for Hawaii Developer’s Council July 21, 2005 Harvey A. Shapiro Research Economist Honolulu Board of Realtors
HDC Why is the Oahu housing market soaring? 7/21/2005 High Demand for Housing Extremely Limited Inventory Low Financing Costs
Results for the First Half 2005 HDC7/21/2005
Increased demand has resulted in HIGHER PRICES HDC7/21/2005
$577,800 $257,000
Residential properties are selling faster: Median number of days properties were on the market before sales agreement (listing date to contract date) YearSingle Family HomesCondominiums nd quarter 1717 HDC7/21/2005
PREMIUMS are being paid for residential properties: Percent of Properties with sales prices > asking price YearSingle Family HomesCondominiums nd quarter HDC7/21/2005
Inventory is extremely limited The number of available listings being actively marketed is now only a fraction of what was available in the early 1990’s! HDC7/21/2005
Historically low mortgage rates HDC Watch Out – They’ll be rising! 7/21/2005
However, Oahu properties are currently more AFFORDABLE than they’ve been! HDC7/21/2005
Estimate
In Summary… Residential sales expansion for thirty-two (32) quarters Sales in 2005 will be similar to last year’s and prices will increase about 20% - 25% Another EXCELLENT year for residential real estate! Properties are selling significantly faster Price appreciation continues Premiums paid above asking price Inventory availability continues low HDC Affordability is still very favorable 7/21/2005