Down a little, up a little, down a little, up a little.
That’s kind of been the trend for Oahu home prices this year, and it continued in May with a dip.
The Honolulu Board of Realtors released a report Thursday showing that previously owned single-family houses sold for a median $770,000 in May, down 1% from $778,000 in the same month last year.
For condominiums the median sale price slipped 2.9% to $417,500 from $430,000 in the same period.
The broad measure of Oahu housing costs this year has been feathering close to levels of last year, and after five months are a bit lower.
Through May the median price for single-family homes was down a minuscule 0.1% to $775,000 from $775,500 in the same period last year, while the condo median sale price was down 2.4% to $415,000 from $425,000.
The slight declines suggest that 2019 could be the year that a string of annual median price increases and new record highs for home prices in Hawaii’s largest residential real estate market is discontinued after a seven-year run.
However, the University of Hawaii Economic Research Organization in late April issued a report forecasting small increases — 2% to 3% — for Oahu median home sale prices for the year.
Sharon Au, principal broker and part-owner of Properties of the Pacific LLC in Kaimuki, said she’s been advising clients to list homes at prices equal to what comparable properties have sold for, or even a little less to generate more buyer interest, as opposed to a higher price as was common in recent years.
“To me right now it’s clear we’re all seeing a softening in the marketplace,” she said. “It is slightly changing. It’s not truly a buyer’s market, but it is changing from the seller’s market we’ve had for the last several years.”
Au, who’s been in the local real estate business since 1985, characterized the market as a “healthy leveling off.”
One factor sapping the momentum of home price growth is fewer sales.
The number of single- family home sales edged down 3.6% to 320 last month from 332 a year earlier.
Condo sales rose 5.1% to 520 in May from 495 a year earlier. But for the first five months of this year, condo sales are down 7.7%, and single-family home sales are down 1.9%.
In addition to fewer sales, buyers have more inventory to choose from, which increases competition between sellers and makes it harder to command higher prices.
There were 1,576 single-family homes listed for sale last month on Oahu. That was the highest level since 2011, and compared with 1,278 listings in May 2018.
The number of condo listings slipped to 2,350 in May from 2,404 in April but was still at the second-highest level since 2009 and compared with 1,978 condo listings in May 2018.
One factor that could help elevate sale volumes is how much interest lenders charge on a mortgage.
“The 30-year fixed mortgage rate recently fell below 4% for the first time since January 2018, which may drive consumers to make home purchasing decisions as we move into the summer months,” Jenny Brady, president of the Honolulu Board of Realtors and an agent with Hokua Hawaii Realty LLC, said in a statement.
The average 30-year fixed mortgage rate slipped to 3.99% at the end of May, according to mortgage firm Freddie Mac. On Thursday the company said the average fell to 3.82%, which was the lowest rate since September 2017.
Home sales in the Honolulu Board of Realtors report represent completed sales that typically reflect purchase agreements signed one to three months earlier. The report also does not include new homes sold by developers. The median price is a point at which half the homes sold for more and half for less.
HOME SALES
The number of homes sold on Oahu in May with the median price and percentage change from the same month last year:
HOMES
SALES / MEDIAN PRICE
May 2019 320 $770,000
May 2018 332 $778,000
Change -3.6% -1.0%
CONDOS
SALES / MEDIAN PRICE
May 2019 520 $417,500
May 2018 495 $430,000
Change 5.1% -2.9%
Source: Honolulu Board of Realtors
ON THE MOVE
Coldwell Banker Pacific Properties has announced the following:
>> Marita E. Hyde has rejoined the firm’s Leeward office as an independent agent. Previously she was an office manager for Hyde Painting & Repair as well as a referral agent for NRT. Hyde started her real estate career in 2006 and joined Coldwell Banker Pacific Properties around that time.
>> Keane Ishii is a new independent agent for the firm’s Diamond Head-Kahala office. Ishii previously served as a realtor-associate at Engel & Volkers.
>> Chance Knell recently joined Coldwell Banker Pacific Properties’ Honolulu office as an independent agent. Knell was previously a realtor-associate at Foster Realty.
