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Values Up, Sales Down

Real estate closings statewide fell a whopping 0.4 percent, exactly four sales off of 1,048. Indeed, title companies hardly noticed ... nor did they allow their aquatically inclined employees to sneak out early for a sunset surf session.

If you worked on Maui last month, you might have had the time to go for a dip: resales took a knock, with closings off 18 percent, or 42 units off of last year’s 239 homes closed. On the other hand, Kauai’s market growth of 20 percent kept their real estate professionals who surf from losing a foot, or at least a couple inches.

While closings kept everyone as busy as ever, something went with it that pleased all who were on commission: values. Across the board, they were up. Every island, every housing type. The runt of the litter was Oahu condos, with a paltry rise of only 6.2 percent. Relative to Maui condos, and that’s but a quarter of the size (try 29.2 percent higher). As for the rest of the state, Maui single family took second in the price-rise sweepstakes, at 12.2 percent, followed by Big Island condos (11.6 percent), Oahu single family (10.7 percent) and Big Island single family (8.2 pecent). Wow, the stars were aligned, or people were rushing in to take advantage of low, but likely to be rising, interest rates.

Question: Was it the offshore market that kept Brutus’ knife at bay? It doesn’t look like it. Overall, in the markets that vacationers love, and often choose to live in, there were 56 fewer sales this March relative to last (aha, so March was cruel, in this one aspect). The main sufferers were Kona (down 26 percent), Kihei (down 23 percent) and Oahu’s fine, gray lady, Waikiki (down 13 percent). However, Kaanapali was up 25 percent and Poipu 50 percent (so keeping body surfers out of the water at Brenneckes did have a positive impact).

This month, Oahu’s real estate market rose again, with the index up another couple of points. While sales were slightly off, prices were way up. New home sales slowed, rents increased, permits were down, but the time on market went down.

Latest month Previous month Year previous Percent
change from
a year ago
HAWAII BUSINESS REAL ESTATE INDEX
Index (1972 = 100) 254.8 228.8 248.9 2.1%
Components:
Resales/number 687 571 690 -0.4%
Avg. resale price/$ 287,651 265,932 266,957 7.8%
Avg. time on market/days 40 46 42 -3.8%
New residential contracts 111 92 123 -9.8%
New residential permits/number 81 110 184 -56.0%
Avg Single-family rents/$month $1,709 $1,689 $1,689 0.6%
HAWAII BUSINESS SPECULATION INDEX
Index (1972 = 100) 136.1 114.7 140.2 -2.9%
Components:
Waikiki condo resales 66 58 76 -13.2%
Kihei condo resales 44 37 57 -22.8%
Kaanapali condo resales 15 11 12 25.0%
Kona condo resales 25 19 34 -26.5%
Poipu condo resales 9 7 6 -50.0%
Total Hawaii Condo Resales 431 393 487 -11.5%
SALES INDICATORS
Oahu single-family and condo resales 574 571 585 1.6%
Maui single-family and condo resales 197 165 239 -17.6%
Big Island single-family and condo resales 207 152 189 9.5%
Kauai single-family and condo resales 66 67 55 20.0%
State single-family and condo resales 1,044 955 1,048 -0.4%


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