Oahu Real Estate Report May 2009

Posted Jun 2, 2009 @ 10:15 pm, Viewed by 371 Visitors, Read 393 Times.

Oahu's median home prices took a big hit last month.  The median price of a single family home declined to $550,000, from  $649,500 in May 2008.  That's a 15.3% drop islandwide.

Median condo and townhome prices fell too.  The May 2009 median sale price was $305,000 versus $337,000 in May 2008.

Home Sales Volume on Oahu

May 2009 had 225 single family home sales, down 10.7% from the 252 homes sold in May 2008. 

For condos and townhomes, there were 263 sales in March 2009 versus 382 in March 2008.  That's a 31.2% reduction in sales from a year earlier.

This year lenders have slowed prospective buyers, putting a big dent in condo and townhome purchases.  Some of those issues include:

- For several months, Fannie/Freddie guidelines demanded that a condo/townhome complex have at least 70% owner occupancy in order to write a loan.  Few properties on Oahu have such high owner/occupant ratios.  This shut out many buyers, unless they had enough money to purchase in cash.  Other ways of financing were VA for military or obtaining a loan from a local bank or credit union which would hold it in their portfolio (and not sell the loan to Fannie/Freddie).   Seller financing was possible if the seller had a relatively low (or no) mortgage outstanding.    Luckily, the restrictions recently eased to 50% owner occupancy.  This should get lending on condos and townhomes moving again.

- Higher FICO scores required for obtaining loans.

- If the property has pending litigation, forget about it.  Lenders won't take the chance now.

- Lenders quit writing loans altogether on Hawaii leasehold properties.  As of today the only lenders we know of writing loans for leasehold properties are local banks taking portfolio loans.  Buyers must be well qualified and the remaining years on the lease must be at least five years longer than the loan term.

Here's how Oahu's home sales and median prices in March 2009 compared with the same period last year by neighborhood. 

Oahu home sales May 2008 vs. 2009
     Homes Sold   Prices Up
Neighborhood   2008 2009       Median Sale Prices  or Down
Honolulu    24   11  $    849,500  $     725,000 ($124,500)
Waialae-Kahala      8   12  $   1,567,500  $  1,367,500 ($200,000)
Kapahulu-Diamond Head    19   14  $     750,000  $     690,000  ($ 60,000)
Hawaii Kai    18   13  $     798,900  $     750,000   ($48,900)
Aina Haina-Kuliouou      8    7  $     760,000  $  1,246,500   $486,500
Kailua-Waimanalo    16  19  $     945,000  $     700,000  ($245,000)
Kaneohe      8    7  $     662,000  $     595,000   ($67,000)
Windward Coast      9    2  $     690,000  $     375,000 ($315,000)
Moanalua-Kalihi      8  13  $     599,500  $     540,000   ($59,500)
North Shore      2    4  $     572,500  $     762,000 ($189,500)
Wahiawa      7    7  $     665,000  $     425,000 ($240,000)
Mililani    22  27  $     606,300  $     565,000   ($41,300)
Makaha-Nanakuli    15  17  $     320,000  $     260,000   ($57,500)
Ewa-Kapolei    36  34  $     472,500  $     415,000     ($2,500)
Makakilo      9  11  $     600,000  $     510,000   ($90,000)
Waipahu    23  15  $     585,000  $     485,000 ($100,000)
Pearl City-Aiea    16  16  $     607,000  $     495,000 ($112,000)

Oahu Neighborhood Price Observations

Home sales above are compiled by the Honolulu Board of Realtors.  Note that each neighborhood varies in sales and price volume.  Neighborhoods in the Honolulu area tend to be more resilient, such as Waialae-Kahala, Aina Haina-Kuliouou and Moanalua.  On the windward side of Oahu, Kailua and Kaneohe are popular areas that also keep pretty steady.

A few sales higher or lower than normal can skew the results for a given month.  For that reason, it's good to look at long term trends to see what to expect and where the values are.

For more information about Oahu home sales, contact Mike Bates (RA) at (808) 548-1220. 

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mikey

mikey Mike Bates is a realtor associate on the island of Oahu. He's lived on Oahu, Maui, Molokai and the Big Island for 28 years and is here to share his knowledge of the Hawaiian Islands with you. Read More

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