Thursday, September 28, 2006

Oahu home prices plummeting

The Honolulu Advertiser carries this report:

There's been a dramatic turn in O'ahu's residential real estate market in the last year.

It's as though value is evaporating into the salty air — $50,000 here, $150,000 there, $720,000 in Choi's case.

This turn hasn't been reflected in regularly reported median sale prices, which continue to be up in year-to-year comparisons. The median price for a single-family home on O'ahu in August was $635,000, up 1.6 percent from a year ago.

The whole article is a must-read. This is the one that we all knew was coming; irrefutable proof that we're transitioning to a buyer's market. More highlights:

According to O'ahu home sale data available at Kaufman's Web site, OahuRE.com, there were 1,798 cases of sellers dropping their asking price last month, compared with only 633 a year earlier.

The number of price drops for homes on the market, which includes more than one drop for the same property, has been steadily rising from 1,081 in January to 1,604 last week. The average drop for single-family homes was 7.6 percent.

It's a fire sale, folks!
The median list price on O'ahu hit a peak in May 2005 at $850,000 and now stands at $770,000. Median list prices for single-family homes have been below their year-ago levels in each month this year except January.
The whole thing, including some nifty graphics, is here.

3 Comments:

At 6:43 PM, Blogger Saltworks said...

So, is everyone going to abandon the island? I seriously doubt it. Somehow I think that prices will not fall more than about 15 to 20% max. Why should they fall any more than that? Is the economy that bad? Is everyone out of work? Does nobody want a nice single family home anymore? People need to keep their heads. The world is not coming to an end. A 20% correction in home prices is *not* the ruin of the world.

 
At 11:41 AM, Anonymous Anonymous said...

Im glad I sold my home in Jan06. Its not a good time to buy into the marke now. If you can get out of the market now do it fast. It might be too late. Homes in Hawaii will fall about 50 percent. Schuller homes will be offering new 3 bedroom homes for 300,000. I will wait three years before i buy again. Remember price fall. Home Prices all over the world are falling. The US is lagging for several years now. The US dollor has dropped and will continue to drop over the next couple of years. If I had money to invest in a home now i would wait. start shopping around for the new developement. They are offering better deals but Dont buy now.

 
At 6:25 AM, Anonymous Anonymous said...

Absolutely right, do not buy now. The slow down which has started right now is just the beginning. 50% are possible over the next years. Also, the dollar is overvalued and will drop soon against other major currencies.

 

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