REPORT FROM PRUDENTIAL LOCATIONS – Prudential Locations, Hawaii’s largest locally owned real estate firm, is pleased to announce the release of its 2012 Oahu Real Estate Market Report showing positive and steady growth in homes sales throughout the year.
At the beginning of the year, Prudential Locations predicted homes sales would increase by 4 percent, and overall median prices would rise by 3 percent during 2012. These projections proved to be true due to a combination of an improving economy, low interest rates and high demand for available inventory, according to Bill Chee, CEO at Prudential Locations.
“Based on our 40-plus years of experience and comprehensive market research capabilities, Prudential Locations is in a unique position to provide the in-depth analysis and insights contained in our annual market recap report, which in turn empowers buyers and sellers to make wise real estate investment decisions,” Chee added.
Highlights from Prudential Locations’ O’ahu Real Estate 2012 Recap Report include:
- All indicators are at or near record levels. Properties are selling quickly and most sellers are getting close to — or more than — their asking price.
- All current market conditions point to increased upward pressure on sales and prices. The extremely low number of properties available for sale may be constraining the expected growth in number of sales.
A closer look:
- Sales: Oahu single-family home sales were 3,072, a 6.4 percent increase over 2011. Condominium sales were 4,221, a 7.4 percent increase over 2011.
- Median Price: The Oahu single-family 2012 median price is $625,000, an 8.1 percent increase over 2011. The condominium median price is $315,000, a 5.0 percent increase over 2011.
- Appreciation: The amount of home appreciation varied depending on region and neighborhood, with 68 percent of Oahu neighborhoods showing an increase in median price in 2012 pointing to a broad-based price shift.
- Bid-Up: 21.4 percent of all homes sold in 2012 — or more than one in every five homes — were bid-up above the asking price. For condos, 12.7 percent — or more than one in every eight condos — were bid-up above the asking price. For homes under $500,000, about 44.3 percent were bid up over the asking price in 2012 — almost one out of every two homes.
- Days on Market: The Median Sold Market Times, or the number of days for a property to enter into contract, dropped from 36 days in 2011 to 32 days in 2012 for single-family homes, and from 42 days in 2011 to 32 days in 2012 for condos. This is a good indicator of strong buyer demand.
- Available Inventory: Current inventory of properties available for sale is 790 for single-family homes and 1,180 for condos. These are the lowest levels on record in 30 years. Given strong buyer demand, it appears that the extremely low number of properties available for sale is constraining growth in number of sales in 2012.
- Distressed Property: The number of distressed sales dropped by almost half in 2012. About 8.5 percent of all residential property sales were either short sales or lender sales, down from 15.5 percent in 2011. O’ahu’s Leeward and Ewa regions are still the hardest hit with distressed property sales of 34 percent and 28 percent respectively.
- Interest Rates: Mortgage rates are at record lows. The current rate for a 30-year conventional mortgage is 3.32 percent, effectively putting Oahu homes “on sale,” as well as increasing the number of buyers who can afford to buy.
To meet the real estate needs of buyers and sellers, Prudential Locations will soon release its 2013 forecast analyzing the current market, historical performance and leading macro-economic indicators.
“We are delighted to see how well O’ahu’s real estate market has recovered in 2012, and look forward to what we hope is continued strengthening in home sales in the new year,” Chee added.
Established in 1969, Prudential Locations LLC is Hawaii’s largest locally owned and operated real estate company. Visit www.PrudentialLocations.com to learn more.