2008 Honolulu Real Estate Wrap Up
December 31st, 2008 categories: The Market
If you base your assessment of the Honolulu real estate market on the media, this year would seem like it was a bummer of a year. In about June, I decided not listen to the gloom and doom proffered by the mainstream media. Furthermore, I determined to find buyers and sellers that would buy or sell under the market conditions we had in 2008. Guess what, 2008 was a good year…for me. What follows are the keys ideas that are now driving the market.
1. Values are down…some. We are not getting the prices we were two years ago. If you have owned your home since 2003 or 2004, you probably have a significant amount of equity (if you didn’t pull it out via a refinance).
2. The market favors buyers…some. If a property has been on the market for more than 30 days, then a buyer can expect to do better on the price. However, a buyer should not expect to be able to buy a property for 15 or 20% below the list price. Also, if a home has been on the market for a few days, if it shows well and is priced close to its market value, then it would not be unusual for a buyer to pay more than full price for the home.
3. The island of Oahu is a tale of two cities. Core Honolulu (Moanalua, Honolulu, Hawaii Kai to Kailua) is stable, demand is high and good houses in good areas sell fast at prices favorable to sellers. Outlying areas (Kapolei, Makakilo, North Shore, Kaneohe) are experiencing foreclosures, short sales and there is general pressure down on prices.
4. You can’t make generalities. Items 1, 2 and 3 above are generalities and for each one there is an exception. Mililani is an exception. Prices are down some, but there seems to be strong demand for quality homes in Mililani. There are condos in Core Honolulu that have seen significant price drops due to too many units being on the market in the same building, at the same time.
In general, I stand by my Honolulu Real Estate Wrap Up, but if you have a specific question it is best to call me and explain you situation, the property location and quality. Once I understand those things, I can make a very specific recommendation. You can reach me at 808-737-2093 or toll free at 877-737-2093.
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