Key Honolulu Real Estate Indicators Going The Right Way!
May 6th, 2009 categories: The Market
The April 2009 Honolulu Board Of Realtors Monthly Statistical Report (CLICK HERE FOR A COPY) has been analyzed in a negative manner by the major media. They seem to focus on the on April 2008 to April 2009 drop in median sales price of single family homes from $639,000 to $585,000 (an 8.5% move down). However, when you look deeper, there are three numbers that tell me things are going to be okay. Here they are.
1. Inventory Of Active Residential Listings (page 12). There were 1,822 active single-family listings. This is a 133 listings less than the year before a drop of 6.8% in inventory! 1,822 listings is not a great deal of inventory. In fact, the traditional belief by many brokers is that anything less than 2,000 active SFR listings means we are going into a period that favors sellers. Given today’s interest rates and pent-up demand, if the number of homes for sale should drop under 1,600 we could see a significant shift in the market.
2. Months Of Remaining Inventory (page 16). The number of months of remaining inventory of Single Family Residence (SFR) moved from 14.7 months in March to 9.7 months at the end of April, that is a switch of 5 months! Be aware that 6 months or less of inventory is considered to be a strong sellers market.
3. Number Of New Residential Listings (page 9). Year over year the number of new SFR listings taken dropped by 26.3%, from 639 to 471 homes. New condo listings dropped by 33.3%, from 858 in April ’08 to 572 in April ’09. Combined with #1 and #2 above, this summer season may be a good time to sell, as there may be less competition and more buyers.
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If you would like to discuss your real estate needs, feel free to call me at 808-737-2093 or toll free at 877-737-2093. You can email me at keahi@lava.net.
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