Kapolei Homes Are Taking Longer To Sell And That’s Good News For Buyers
Every month the Honolulu Board of Realtors publishes a home sales report for every neighborhood on the island. As you can see, it’s a lot of charts and numbers. Happily, Kapolei Realtor Sam Paltikian is here to explain what it all means for west side homeowners.
Sam’s September Real Estate Report Breakdown
September was a record-setting month for single family home prices in Oʻahu.
The median reached $812,500 (+6.9%), and the average price was $1,053,040 (+9%).
However, closed sales are down 17%, and days on market are up 21%, so the inventory is growing. This is a big change. Not long ago, single family homes and condos were being sold in 7-10 days with multiple offers.
Interest rates have been rising, so many buyers are being more cautious. But a smart buyer could find an excellent deal in this market. A motivated seller may be willing to lower their asking price rather than wait weeks or months for a sale to go through. And interest rates are still below 5%, which is a good deal.
Here are highlights from the island-wide report:
ʻEwa Plain Report
We are clearly noticing some changes in the local housing market conditions. As prices continue to climb (+9%), so does inventory, and closed sales are down 40%, and the days on the market are up 92%. These are definitely changes from days of past, and could be a good time for buyers!
Most Interesting Home Sale Of The Month
Some of the most expensive houses on the west side are in the Beach Villas in Ko Olina. Homebuyers are willing to pay a premium for living near the lagoons, championship golf, and the fine dining options. An oceanfront townhouse in Ko Olina just sold for $2.1 million!
Single-Family Home Sales By Neighborhood
| Neighborhood | # of Sales | Median Sale Price |
|---|---|---|
| ʻEwa Beach | 4 | $775,000 |
| ʻEwa Gentry | 19 | Not Available |
| Kapolei | 6 | $699,500 |
| Makakilo | 19 | $710,000 |
| Ocean Pointe | 12 | $815,000 |
Condo/Townhouse Sales By Neighborhood
| Neighborhood | # of Sales | Median Sale Price |
|---|---|---|
| ʻEwa | 11 | $380,000 |
| ʻEwa Gentry | 7 | Not Available |
| Hoakalei | 3 | $590,000 |
| Hoʻopili | 2 | $507,200 |
| Kapolei | 6 | $373,000 |
| Ko Olina | 9 | $700,000 |
| Makakilo | 12 | $387,500 |
| Ocean Pointe | 18 | $530,000 |
Sam’s Story: What Happens When A Seller Can’t Find A New House
I would like to share a real-life example of how buyers can lose a house they thought they’d be able to purchase.
About a month ago, a family I represent made an offer on a home in Waipiʻo Gentry. The sellers accepted, and both parties were happy. The sale was contingent upon the sellers finding a replacement property within 30 days, which means they needed to have an accepted offer to buy their next home.
The sellers had every intention of moving, as they wanted to have their children go to Mililani High School. The sellers made offers on two houses they liked in Mililani, but both offers were beaten out by other buyers.
When the 30-day contract limit came due, the seller did not have a new home to move to, and decided to cancel the contract to sell. When I informed my clients (the buyers) they were disappointed. They’re renters, and were excited about owning their own home.
I had to gently remind them that their offer was contingent upon the sellers obtaining a replacement property within 30 days. Since they didn’t find a new home, they could legally cancel the Purchase Contract.
This example shows that the contract is the legal fallback position for buyers and sellers. It protects everyone when things don’t go as expected. We are looking for a new house again, and hopefully will soon find the one they will call home!
