Oahu's Balancing Market
The market continues to move towards a balanced market where neither buyers nor sellers have significant negotiating leverage over the other. That means demand has slowed, allowing buyers to take more time to select the right property to purchase and consider their options. Fewer homes sold (down 26.5% for homes and 33.3% for condos) and a decline in homes/condos for sale (28.9% and 25.8%) translates into more inventory for buyers to choose from allowing them. Buyers who purchased last month paid 96.7% (homes) and 98.5% (condos), a far cry from the 102% and 100% of the list price they had to pay a year ago to buy a property.
In a balanced market, sellers have to be more patient as it took 36 days last month for a home to accept an offer and 24 days for a condo/townhome to accept an offer. Moving forward, sellers and their Realtor will have to navigate the competition by presenting their properties in a way which will accentuate their highlights and market them to ensure active buyers take notice.
Even though the economy and real estate market has slowed, foreclosures are still a very small part of the market, making up only 1.8% of the active inventory on the island. That said, there may be unlisted opportunities or a ghost inventory on its way. In any event, whether buying or selling, a market which continues to shift requires an eagle eye and a professional Realtor to navigate the market like a seasoned captain navigates unpredictable stormy waters.
Read the full report from the Honolulu Board of REALTORS® here.