Report: Oahu Housing Market Resilient

Home sales have slowed in the Honolulu housing market, but a new report finds that by several measures the Oahu real estate market is showing strength not seen on the Mainland.

According to the Hawaii Business Journal, Prudential, in its monthly Oahu analysis, focused on a metric it uses to gauge market resiliency of the market: months of remaining inventory, how long it would take at current sales pace to sell all current listings at market value.

That metric held steady in March, even as bad credit mortgage loan woes across the United States continued to mount and spark widespread concerns.

Given steady median prices - for homes, roughly flat, and for condos, up about 3 percent from year-before levels - and a decreased number of active listings, the firm thinks the Hawaii housing market still looks good for sellers and for its agents.

Especially compared to some of the declining Mainland American markets, the prospects for Hawaii mortgage activity and home sales look bright.

“Because there is less inventory on the market, buyers are finding that there is more competition when bidding on a property, and sellers, with fair market value listed homes, will discover that they are likely to receive multiple offers,” Prudential Locations said.

MRI - months of remaining inventory - is a little above five months. That’s the amount of time it would take for all homes currently on the market to be absorbed.

Prudential Locations said six months is a point of equilibrium where the market may fairly be described as equally good for both Hawaii mortgage seekers and sellers. Five months is a better market for sellers.

SOURCE: Pacific Business News