Honolulu real estate update

November 21, 2009 by · Leave a Comment
Filed under: Hawaii 

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Oahu real estate has fared much better than the other neighbor islands, reported Allison Schaefers of the Honolulu Star-Bulletin on September 16, 2009.  Her article claimed that “Oahu posted 302 foreclosures in August, or one per every 1,109 households.”  It seems that Honolulu homes for sale may have fared better than the rest of the island.  In fact, according to Anne C. Lee’s Fast Company article written for the November 2009 issue, Honolulu has the highest median home price of $569,500.  Interestingly, this is more than time times greater than the lowest median home price in the nation of $55,700 in Saginaw, Michigan.  Honolulu’s median price has also held strong against the national numbers.  The article claims “the national median price for existing single-family homes in the most recent quarter is $174,000.”

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Allison Schaefers had more good news for Honolulu homes for sale in her latest article in the Honolulu Star-Bulletin, published on October 5, 2009.  She claimed that, “it was a September to remember for Honolulu’s residential real estate market as both home sales and prices rose for the first time in a long while.”  By looking at the numbers, “single-family home sales jumped 13.5 percent to 244 and the median sales price rose 1.7 percent to $590,000.”  These are good signs for real estate in Honolulu that has suffered tremendous losses in the last few months.  The article’s expert, Lawrence Yun, the chief economist for the National Association of Realtors, was also optimistic.  He said, “Consumer psychology appears to be decisively turning for the better as the housing market has been showing signs of bottoming, if it is not already past a bottom point.”  Yun believes lower home prices and lower mortgage rates coupled with the homebuyer tax credit have helped to improve Honolulu’s numbers.

oahu-beachfront-real-estateHonolulu has been a good performed compared to the neighbor islands that have suffered much more extensively.  Analysts believe this difference is due to the amount of homes on Kauai, Maui, and the Big Island that are second homes for many people who claim primary residence on the U.S. Mainland or Asia.  Typically, in times of economic recession, second homes are the first assets to be released to gain liquidity.