O’ahu Market Update
March may have marked the month of divergence. The demand and supply indicators for homes and condominiums are moving at different speeds. Home prices were relatively flat as compared to last year, while condominium/townhome prices dropped compared to last year. New listings for sale for homes were flat while new listings for condominium/townhomes increased by 22.1%. Closed sales or demand for condo/townhomes dropped by 22.5% while homes hovered near flat, moving down just 2.5% or 6 sales less than the year prior.
If this trend for condominiums/townhomes continues, buyers may experience improved affordability, more choice, and more time to make the buying decision. Last year, sellers waited 36 days to accept an offer on their home. This year, that number dropped to 31 days. While sellers are experiencing steady demand for homes, they may want to consider being aggressive in marketing and pricing for condominium/townhomes given the drop in demand and increase in competitive inventory.
There are so many factors that are the cause of the current market. Here are just a few:
- Insurance coverage for condominiums increases maintenance fees and eliminates buyer financing for under-insured properties,
- The unpredictability of mortgage interest rates,
- The lack of new housing over the past 30 years, and
- The strength of the dollar influences international sellers and buyers.
