The Real Estate Market Is Shifting Toward Buyers
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Every month the Honolulu Board of Realtors publishes a home sales report for every neighborhood on the island. As you’ll see below, 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 January Real Estate Report Breakdown
We are starting off the year of 2019 with a shifting market.
The last few years have clearly been a “sellers market”, meaning:
- Not many days on market
- Multiple offers
- Homes selling for more than the listed price
The shift now is a little more toward the buyers:
- Homes are staying on the market longer
- Fewer offers
- In January, single-family homes sold for 3.9% lower than list price, on average
This means that it is a good time for buyers.
As for sellers, the market still yields some advantages. Prices are still high. This means you can sell, and still make a profit.
The median prices shown in the chart below can be a little misleading, as the median takes the highest and lowest prices and cuts them in half. The average sales prices tend to be more helpful for truly evaluating market price conditions.
In January, the average single family home price was $967,119, and condo was $490,812. This shows that the market can also be strong for sellers.
ʻEwa Plain Local Report
The ʻEwa Plain is one of the most active markets on the island, with many homes selling, and military personnel PCSing in and out. The constant activity over the whole year, yields buyers and sellers great opportunities.
Featured Sale(s) of the Month
Ocean Pointe has some of the largest homes in the ʻEwa Plain, with newer construction, and comfortable living for larger families.
One recent Ocean Pointe sale was of a single family home with 5 bedrooms, 3 full baths, 2 car garage, and extra parking pad, 2,852 sq. ft. of living space, and a large lot size of 5,080 square feet.
The home was built in 2004, and remodeled in 2017, with many upgrades.
The original list price was $950,000, and it was sold for $930,000, after just 28 days on the market.
Sam’s Story: We Want It…But Can We Afford It?
Wanting to buy a new house, and being able to afford a new house, can sometimes be two different things.
I met with a happy couple just last week, and they are in process of adopting a baby boy (how wonderful)! They own a studio condo, and want to get a 2-bedroom condo, to meet the needs of their expanding family.
However, they don’t have much cash on hand, and some of the bigger houses require a large down payment.
I showed them a reasonably-priced 2 bedroom condo. It needs a little fixing up, but that’s fine with them since hubby is handy. The wife really liked the 2-bedroom condo. She shouted: “Sam, please help us get this place!”
This family touched my heart, so I went to work.
I ran a market study on the new 2-bedroom condo, which showed it was indeed a great value — priced about $20,000 below market pricing.
Then I did a full CMA (Comparative Market Analysis) report on their current studio condo, which they bought five years ago. I found that it was worth much more than they had paid for it.
We next had a meeting with a financial lender, to determine their true manageable living expenses. This was the moment of truth.
By taking the equity in their current home, and adding no extra cash out of pocket, they could afford the larger 2-bedroom home for their growing family.
Just breaking down the steps, analyzing the situation, working with the appropriate resources, and understanding the process, can Make Realty Dreams A Reality!