Oahu home prices rose slightly in Novem­ber

Honolulu Star-Advertiser - - BUSINESS | BUSINESS REPORT - By An­drew Gomes agomes@starad­ver­tiser.com

Oahu home prices con­tin­ued their mostly slow and steady rise this year, notch­ing 3 per­cent gains in Novem­ber.

The mea­ger in­crease last month was close to par for the year to date, and it looks cer­tain that the price ap­pre­ci­a­tion for all of 2017 will lag behind last year’s gains.

Still, prices in Hawaii’s pri­mary hous­ing mar­ket will set a sixth con­sec­u­tive an­nual record since wa­ver­ing for a few years af­ter the Great Re­ces­sion in 2008.

The most re­cent mar­ket data were re­leased Wed­nes­day by the

Honolulu Board of Real­tors, and cover prices and trans­ac­tion vol­umes for pre­vi­ously owned homes sold in Novem­ber.

Sin­gle-fam­ily homes sold last month for a me­dian $773,500. That was up

3.1 per­cent from $750,000 in the same month last year.

Con­do­mini­ums sold for a me­dian $405,000 last month, up 2.5 per­cent from $395,000 a year ear­lier.

For the first 11 months of this year, the sin­gle-fam­ily home me­dian sale price is $758,000. That’s 3.1 per­cent above the com­pa­ra­ble fig­ure last year, $735,000. The gain last year over the prior year was 8.3 per­cent.

IN THE condo mar­ket, the me­dian sale price through Novem­ber is the same as the me­dian for the month alone, $405,000. That’s 4.1 per­cent higher than $389,000 for the first 11 months of last year. The gain for 2016 over 2015 was 5 per­cent.

The me­dian price is a point at which half the sales were at a higher price and half at a lower price.

The small in­crease in the me­dian price last month oc­curred de­spite con­sid­er­ably stronger de­mand.

Sale vol­ume rose 12.9 per­cent for sin­gle-fam­ily homes, to 332 last month from 294 a year ear­lier. Condo sale vol­ume jumped 19 per­cent to 501 from 421 in the same pe­riod.

Scott Hi­gashi, pres­i­dent and CEO of lo­cal res­i­den­tial real es­tate bro­ker­age firm Lo­ca­tions, said the vol­ume gains showed mar­ket strength.

“Novem­ber was an­other strong month for home sales, with dou­ble-digit in­creases for both sin­gle-fam­ily homes and con­dos,” he said in a re­port ear­lier this week that also pro­claimed there are no signs of de­mand


Ear­lier this year, there were sev­eral other months with dou­ble-digit sale vol­ume in­creases. For the year through Novem­ber, the num­ber of sales is up

5.8 per­cent for sin­gle-fam­ily homes and up 7.6 per­cent for con­dos.

Sales counted in the lat­est re­port are ones that closed in Novem­ber, and largely re­flect purchase con­tracts signed one to three months prior.

Lo­cal economists have said that buyer de­mand is rel­a­tively strong be­cause of a grow­ing econ­omy, record tourism, low un­em­ploy­ment and low mort­gage in­ter­est rates. Also, some of the up­ward pres­sure on prices is due to not enough new homes be­ing built in re­cent years to keep up with pop­u­la­tion growth. As prices rise, though, it makes many homes un­af­ford­able to more peo­ple, and that can have a brake ef­fect on price ap­pre­ci­a­tion.

THE Univer­sity of Hawaii Eco­nomic Re­search Or­ga­ni­za­tion in Septem­ber fore­cast that Oahu’s sin­gle-fam­ily home me­dian sale price should tick up about 5 per­cent next year to $791,000 while the me­dian condo price will in­crease about 7 per­cent to $433,000.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.