Why West Side Home Prices Are Holding Steady
The real estate market is ever-changing. Happily, Kapolei Realtor Sam Paltikian RS-79996, at Coldwell Banker Pacific Properties: (RBO-16781), is here to explain what it all means for west side homeowners.
Sam Paltikian is a REALTOR-ASSOCIATE®, RS-79996, at Coldwell Banker Pacific Properties: (RBO-16781)
I have more COVID-19 effects to report this month, after the lag effect from the March and April social distancing measures.
- Single-family home median prices rose 3.5% in May! But condo median prices were down 4.4%.
- Closed sales were down 22.5% for single family houses, and condos down 51.2%.
- Days on market down considerably for both categories.
My take? Because fewer people are selling, qualified buyers are competing for the same properties — that’s driving prices up.
ʻEwa Plain Stats
- New listings for single family houses were down 42%, with condos down 54%. This shows that Kapolei / ʻEwa buyers have fewer choices.
- Closed sales were also down for single family houses by 23%, and condos down 28%. This is because there were fewer new listings coming to market.
- Median sales prices were up for both single-family homes and condos, and closing prices were about the same as the original sales prices. Competition from other buyers is keeping prices up.
- Inventory was down for single family houses by 33%, with condos down by 24%. This was the driving factor causing higher prices and shorter days on market.
What does the future bring for July and the rest of this year, considering the lag time effects from the economy challenges due to COVID-19? I am not an economist, and do not predict the future markets, but I would like to share a few facts.
- Home loan interest rates are at 50 year lows, and buyers with secure jobs are buying.
- June new listings are increasing and days to get into contract are short.
- We have 6 military bases on Oʻahu, with personnel moving in/out every year, and the zero down payment VA loan makes it attractive to buy.
- Tourism has been greatly affected, and will take time to recover.
- Sellers can achieve higher sales prices now, and adjust their home up or down, depending on family needs.
- Buyers can realize loan approvals with higher amounts, due to the low interest rates, and achieve that house they having been dreaming to own.
Changing times in real estate requires some extra work: Market education, establishing resources, and house hunting efforts!
If you want to learn more about market conditions for 2020, please contact me for a one-on-one discussion. You can email me at Sam.Paltikian@cbpacific.com or call 808.265.1450.