Hawaii Randy's Real Estate Opinions: November 2009

In Hawaii we do not see the extreme winter slow down as in parts of the mainland.  The weather is nice year round here.  But even with that said the holiday season usually sees a lull in real estate activity.

This year may see the trend bucked a bit.  The last couple of months, inventory in some of the communities I service have dropped considerably.  Interest rates with discount points at local lenders, are bouncing between 4.5% and 4.75% on a 30 year fixed.  Add to the mix federal tax credits of $8000 for first time buyers and $6500 for repeat buyers.  You may be seeing the forming of a perfect storm.

Buyers are finding homes at great prices and attractive financing.  They are however finding less of them to choose from each day in many parts of the island.  We are also seeing prices beginning to climb for the first time in awhile in some parts of the island.

My normal advice to sellers is to wait until the beginning of the year to put their home on the market.  This year the conventional wisdom may possibly be out the window.  December looks to be a good month for both buyer and sellers.

Buyers, who were going to wait until after the first of the year, may want to start their search now.  Sellers who are getting their home ready for sale may think about jumping in the market now.  The lack of inventory in many areas will put them in a more favorable position.

If you are thinking of entering the real estate market on Oahu, please contact me for a free consultation.

This Mililani sales report covers zip code 96789 which covers both Mililani Mauka and Mililani Area (which includes Mililani Town, Launani Valley and Waipio Acres).

Mililani real estate is beginning to pick up again.  We are still seeing good real estate activity in the Mililani area.  The market is beginning to shift back to a seller's market for the first time in awhile.  Inventory levels are a fraction of what they were even a few months ago.

A few dynamics in the area:  Castle and Cooke has finished selling new homes in Mililani Mauka.  We are continuing to see troop movements at Schofield Barracks, which is contributing to the movement of inventory in Mililani.  Many troops returned for Iraq and Afghanistan putting pressure on the rental market and entry level property sales.

Single Family Homes (resale): Average sales prices in Mililani Town and the valleys stayed are down from the same time last year. Although we are seeing things pick up within the planned community of Mililani Town, the valleys are still sluggish. Mililani Mauka has seen average sale prices begin to increase the last couple of months.  The inventory levels have dropped lower than we have seen in a long time in Mililani Mauka and in Mililani Town, which are putting pressures on the prices. 

Buyers will find this to be a great time to get in the market.

• Prices have stabilized and are seeing pressure to increase.
• Interest rates are at historic low levels.
• Federal tax credits have been extended for first time buyers and are now available to all buyers that meet the income requirements (most buyers)

Sellers will find this a great time to list their home.

• Inventory levels are low giving them less competition.
• Buyers have incentives to buy now.
• Prices have stabilized.

 Condo and Townhouses (resale):  Sales volume and average sales prices in Mililani Town and the Valleys are picking up.  Although they are down from this time last year, with the lowered inventory levels we are seeing things picking up the last 3 or 4 months.  The valleys are not seeing as much activity as within the planned community, but as the inventory levels have dropped in Mililani Town and Mililani Mauka buyers are beginning to look in the valleys again for value. 

Currently Active for Sale (November 17, 2009): 

• 31 Single Family Homes - Mililani Area
• 12 Single Family Homes - Mililani Mauka
• 55 Condos/ Townhouses - Mililani Area
• 15 Condos/ Townhouses - Mililani Mauka

Currently in Escrow (November 17, 2009):

• 24 Single Family Homes - Mililani Area
• 23 Single Family Homes - Mililani Mauka
• 39 Condos/ Townhouses - Mililani Area
• 16 Condos/ Townhouses - Mililani Mauka

 *These numbers were taken from the Honolulu Board of Realtors MLS system and are deemed to be accurate, but not guaranteed.

©2009 Randy L. Prothero