IMPORTANT Do not miss the Oahu Neighborhoods Report providing a recap of the past 24 Months of Sales Data. See: "Oahu Neighborhoods" See Sub Page: "Hawaii Kai Neighborhoods"
This Hawaii Kai SFH Report begins with the results of the 1st. Quarter '09 for a complete perspective
Following this 1st. Quarter Report '09 is the Monthly Report
Feel free to shoot me an email if you do not see the report you need.
( This feature will be updated by the Second Weekend of every Month)
1st. Quarter Report '09 Hawaii Kai Single Family Homes
The ACS % or demand for Single Family Homes in Hawaii Kai continues to be anemic and had increased only slightly since December '08. This is primarily due the fact that all across the Island only the low end price ranges are selling for the most part at this time.
The Median Sold Price has fallen over the past 12 months and continues to fall as more and more listings go into escrow and then are sold while the high end priced listings sit on the market. This will be a continuing trend until some time Mid-Summer when we reach the peak of our selling season and during these four months some higher priced listings will sell and therefore increase the Median Sold prices.
Sales for Hawaii Kai Homes have not really declined overall for the past 12 months and are continuing to rise as the Summer Peak Season comes closer. Although the number of sales are relatively low, they are increasing. Consequently the D.O.M. or the Days On Market are dropping at this time and should continue to drop throughotu the Peak Summer Season of June, July, August and September.
Although the number of New Listings coming onto the market are much lower than 12 months ago please note the decline in Median Sold Prices are much higher than the decline in the number of New Listings. Of particular note see the Median For Sale Price of the New Listings and you will see what I mean. The reason for this is simple, as we get closer the Peak Selling Season the number of New Listings Median For Sale Prices will be higher as this is the best chance all year higher priced inventory has the opportunity to sell as close to asking price as possible.
Inventory build up has been moderate in Hawaii Kai Single Family Homes but will continue to rise during the Peak Selling Season. As you will please note, it is apparent that higher priced listings are now coming onto the market in hopes of selling during their best chance to sell all year as can be seen by the dramatic rise in the Median For Sale Price.
Withdrawn and Expired Listings which depict homes that have not been able to sell and are now have been taken off of the market and most likely returning to market at much lower For Sale prices are now entering the market. The number of Withdrawn and Expired Listings has increased and tells us that there are still many price changes occuring in Hawaii Kai Single Family Homes.
Also note the Pie Charts showing what is For Sale by Price Range, what is in Escrow and what has Sold. This will clearly show you the high number of higher priced listings on the market and what the buyers are actually purchasing. They are purchasing in the low end price ranges such as in Kalama Valley.
Hawaii Kai Condos 1st. Quarter Report '09
The same thing that is happening in Hawaii Kai Single Family Homes as far as demand is happening in Hawaii Kai Condos as well. The demand has been weak for the 1st. Quarter. The demand for Hawaii Kai Condos as risen slightly as the activity level for these condos rise for the Peak Selling Season of the year.
The Median Sold Price for Hawaii Kai Condos has not lost much value at all over the past 12 months and I will tell you why. The reason for this is there is a lack of 'affordable' inventory For Sale. Consequently it is predomently the higher priced units that are selling which is to mean those priced in the $400,000 to $599,999 price range. Upon closer inspection of the Pie Charts we see that what has Sold is the $500,000 to $599,999 price range but...what is going into Escrow are the $400,000 to $499,999 price range.
Of course what is happening right now as well is inventory influx of New Listings that are priced in higher price ranges which is affecting the Median Sold and For Sale Price.
Sales, just like those of the Single Family Homes in Hawaii Kai are starting to rise but the sales volume in units sold is way off from this time last year.
What is different for Hawaii Kai Condos as we can see from the 1st Quarter graphs for the D.O.M. ( Days On Market) is that unlike the SFH's, the Hawaii Kai Condos D.O.M. did not decline but rose.
I anticipate better numbers and conditions for Hawaii Kai Condos in the months to come but after September of this year I fully expect the numbers to worsen to a condition much more profound than what we have seen so far.
Most of reporting for Hawaii Condos labels this area as a "Train Wreck" and I still think it is a "Train Wreck."
Note the number of New Listings coming onto the market as compared to the previous 1st. Quarter of '08. Just like in SFH's, the Hawaii Kai Condos number or New Listings has dramatically dropped and this is purely because of the lack of "affordable inventory" For Sale.
To support this, look at the new Median For Sale Price of New Listings for Hawaii Kai Condos and how much it has dropped as compared to last 1st. Quarter '08. This is what buyers of Hawaii Kai Condos are looking for...prices in the $400,000 to $500,000 price range.
Inventory does not seem to be a concern right now but if you look at the overall rise in inventory For Sale since 1st. Quarter '08 it is another story. On top of that I seriously doubt that inventory will go flat line or decline in the coming months. I believe the inventory go rise significantly.
The Median For Sale Price has dropped significantly over the past year, has still not dropped to where it needs to be as buyers are telling us. This is because the higher priced inventory is now coming onto the market. This, just like the SFH owners of higher priced property in Hawaii Kai know that right now is the best chance they are going to get to unload the higher priced homes. After September of this year they the owners will have to go through significant price reductions to sell these same homes. The owners are simply taking advantage of the Peak Selling Season.
Expired & Withdrawns are at a high and climbing. This tells us why this area is a "Train Wreck" as there is plenty of room for negotiation on prices in Hawaii Kai Condos...as long as the seller has the 'room' to do so.
What does the seller owe? When did they purchase the property? These are all questions that should be answered in investigating whether or not to put in an offer that is lower than asking price. These answers are available to you on the Public Tax Map Records. You cannot get 'blood out of a rock.' No matter how much you negotiate on price, if the seller has no margin left between what they are selling for and what they owe...you are wasting your time.
The Pie Charts tell the story...
Hawaii Kai Single Family Home Monthly Report
Hawaii Kai SFH Year End '08 Report
Hawaii Kai Condos
Hawaii Kai Condo Monthly Report
Hawaii Kai Condo Year End '08 Report
Disclaimer
I hope you all have enjoyed this report and found it beneficial in your research of Hawaii Real Estate. As always, please remember to check as many resources that you personally trust to properly arrive at an overall evaluation of this subject matter. All buyers and sellers should draw their own conclusions and conduct their own investigations. Final Notes
In evaluating Hawaii Real Estate investments you should conduct your research on the data, interview agents and brokerages and consult mortgage lenders. By all means feel free to contact me for your personal questions you may have. I can be reached via the below information:
Mike Gallagher Realtor/Broker/Broker in Charge RE/MAX Honolulu 808-951-3200 Office My Cell: 808-384-9015 My Email: Mikeg@hawaii.rr.com
Neighborhood Reports and a wealth of Hawaii Real Estate subject matter can be found also at: Hawaiirealestatestatistics.com
I wish you all my Aloha and ‘Good Luck’ in your investigations! Much Aloha, Mike Gallagher
P.S.: If you’re viewing this report on the internet please see the New Monthly Feature:
The Honolulu Board of Realtors Statistical Report An Outstanding Resource for all at www.hawaiirealestatestatistics.com
If your property is listed, please disregard. It is not our intention to solicit the offerings of other Brokers. We will cooperate fully. This publication is neither endorsed by RE/MAX or RE/MAX Honolulu. The opinions and information are only those opinions of the author. Statistics are from the Honolulu Board of Realtors. All material is deemed reliable but not guaranteed. Any copying or distribution of this material herein is STRICTLY UNAUTHORIZED without express written permission from the Author.
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