Oahu Luxury Homes Continue To Be Buyer's Market

                   

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Over the past 24 months, while much of the lower price ranges have tightened in inventory and seen list price / sale price improvements, the $5MM and up marketplace continues to languish. 2 years ago, the time required to liquidate the existing listings ( Active units / Sales per month ) was just under 4 years. As we speak today in April 2012, the active listings total 41 and 20 homes have sold since March of 2010, which translates to an inventory in excess of 5 years today at the rate of one home selling every 40 days. 

The sold price as compared to list price has also fallen, with an overall average for the 20 sold homes of 87% of sold price to list price and with the following results in specific price ranges. 

$5MM range = 7 solds - 82% to 96% sale to list price -  avg = 87%
$6MM range = 4 solds - 75% to 93% sale to list price -  avg = 86%
$7-8MM range = 4 solds -  79% to 86.5% sale to list -   avg = 84% 
$10-20MM range = 4 solds - 75% to 100% sale to list - avg = 90%
$20 MM + range = 1 sold - 91% sale price to list -          avg = 91% 

Currently, the Average Days on Market for Active listing is 151 days
The average Days on Market of the 20 sold properties was 99 days. That compares to 64 days on the market for the average of homes priced below $750K.

The above does not reflect a marketplace of abundance, but instead reflects a lack of buyers as compared to the available properties for sale with options galore for purchasers. Purchasers in this market are able to use the statistics above to support their views of values with the weight of limited choices for seller's.  

During the same 24 month period, there were 121 listings that either expired or were withdrawn - having been rejected by the marketplace without success. These properties also become purchasing opportunities.

There is always the question of value in the list price when viewing statistics. Cases in point being one property that sold for full list price and was listed at $17.5 MM and 2 of the 20 selling for 75% of list price. As always, actual value versus list price is the most important consideration and of greatest concern. As advocates of the purchaser, we are able to assist in these areas.
 
For a recent analysis of the market for the past 12 months, follow the link below:
                                 March 2012 Market Report

If you would like to view the current properties on the market and / or the recently closed properties, you can follow this link : Current properties on the market

If you have any questions regarding the Oahu Real Estate market, I'd love to hear from you : Email Michael 

Below are earlier views of the same market for the past few years. Thanks for stopping by.

Aloha ! 

Michael Hege' RA 
Kapolei Realty, Inc
(808) 225 - 3660



                            Sold AT $1,175,000
Just listed ! 92-1323 Hauone Street - MLS #1105424 -  Makakilo Perimeter home with 3,500 square feet, Shows like new construction and has an incredible view. This home is priced at only $1,249,000 and is just lovely - To view this great listing:
   
          CLICK HERE FOR INFO & INCREDIBLE VIRTUAL TOUR 

 CLICK HERE To View $5 Million + Listings  

This is an update (March 2010 )  to an earlier article examining the activity in the $5MM plus waterfront homes on Oahu. The article below was written in June of 2009 and since that date, another 6 homes in this category have sold out of 31 listings currently available.

That would be one home sold every 45 days more or less, which would translate to the 31 homes currently on the market providing a 46.5 month supply, assuming there were no new listings added to the inventory.

As the article below suggests, it continues to be a great time to pursue a luxury home on Oahu and to choose from a large selection. To be honest, I thought the sold homes might have been higher than the 6 I found, as the market is definately turning in the lower ranges. But as of yet, the buyer enthusiasm has not reached this price range. Here is a little breakdown for you:

3 of the sales were in the $5MM range and sold at discounts to list price of 20%, 15% and 8%.
1 of the sales was in the $6MM range and sold at a discount to list price of 15%
2 of the sales were in the $7MM range and sold at discounts to list price of 15% and 20% respectively.

For those who are paying attention, that means for the folks who are selling ocean front homes in excess of $10MM, there has not been a sale in that price range and category since August of 2008 and it could be a great time to change that.

I would love to help you find the place you've always wanted in paradise!

If you'd like to say hello, just click here Contact Michael

For the earlier article, continue below:

Enjoy the Best of Oahu ! 
                         
                     

To view the current listings Click here .

For the discriminating buyer, the possibility exists that we have now entered the best market to purchase Exclusive properties in Hawaii in years. I've created a link to a website located at the top of this article to view these properties, but thought I'd also spend some time on why I believe the market may be perfectly positioned to acquire these properties now.


                 

As we sit today in the $5MM plus market, there are currently 38 properties available. In the past 6 months, there have been a grand total of 4 sales in this price range in the criteria that I am analyzing which is waterfront properties. The last 2 of these sales were recorded in March of 2009 with the 2 other properties having closed in December and January. In other words, up to 38 homeowners have been waiting over 3 months for someone to purchase their property and no one has come forward. 



                       

At the past 6 month activity level, it would take 5 years to deplete the current supply of listings and at the past 3 month level (zero), it is what one could aptly describe as a market that could be within the complete control of a capable buyer. To put this into a historical perspective :

2008 totals         14 closed sales    17 active listings at year end (38 June '09)
2007 totals          9  closed sales         
2006 totals         12 closed sales
2005 totals          8  closed sales
2004 totals          9  closed sales

As you can tell from the numbers above, while 8 to 14 sales in this price range and category are the historical range per year, with no sales and no pending sales currently identified on the MLS for the past 3 months, what a great climate to present an offer to a seller that is cash and priced according to the current market conditions.


                

The search link below is to provide you with an idea of what is currently available. If you would be more interested in having a personalized search prepared for you or would like more information on my market feel free to contact me by email or give me a call at 808-225-3660.


              

I have made the business decision to only represent purchasers in this price range of homes which allows me to fully represent the purchaser's interests, aid in negotiating strategies and aggressively seek the best terms available for my client, the purchaser. To further avoid potential conflicts with my existing client's interests, before I am able to accept additional clients in this price range, I seek approval from my existing clients.

Search website for Ocean Front listings

Ocean Front for under $1MM This listing is HOT!

Let's get started!



Michael Hege' RA
Kapolei Realty, Inc
808-225-3660
mhhege@aol.com