The housing market in Oahu continues to move forward. September saw increased sales volume and higher median costs when compared to the same month in 2016.
Data that was released by the Honolulu Board of Realtors at the beginning of October shows an increase of 11 percent for median condo prices. These surged from $383,250 to $425,000 and tied the July record. In regards to single-family homes, prices for previously owned properties rose by 1 percent. The median value increased from $750,000 in 2016 to $760,000 in 2017.
When it comes to sales volume, September 2017 experienced 526 condo transactions. This figure is up 3 percent from the previous year when 512 condos were sold. For the same time period, sales of single-family homes were up 14 percent and rose from 329 to 374.
Big Island sales figures for the first three quarters of 2017 have outpaced the 2016 numbers. The Multiple Listing Service (MLS) statistics show that 4,114 properties were sold between January and October. This is a 6.5 percent growth when compared to 2016. The third quarter alone yielded 633 out of 1,865 residential transactions. Different dynamics contributed to the strong housing market. These include a large number of listings in east Hawaii and a willingness of banks to provide mortgages with reasonable terms.
Between July and September, the Puna district alone was responsible for almost 40 percent of Hawaii’s residential transactions. Sales in this region should continue to rise due to a successful combination of available land, appealing houses and good prices. In the meantime, South Kona holds the distinction of having the largest spurt in home sales with an increase of 42 percent over 2016. However, the formula of higher pricing and lower availability of properties on the island’s west side limits the growth potential.
Real estate in North Kohala became more affordable with a median sale price dropping from $785,000 to $700,000, but it’s still the most expensive in Hawaii. The market here remains steady, despite limited inventory in Hilo. Costs for vacant land in South Hilo went up nearly four times within the third quarter. Compared to 2016, prices rose from $45,000 to $170,000. This intense upsurge is caused by lack of new construction. However, residential listing prices decreased slightly.
While the Hawaii housing market is currently flourishing, experts agree that it won’t last. However, it’s expected to prosper for two years on the eastern side and for three years on the Kona side.