Hawaii home prices finally begin to slip
Hawaii home prices finally begin to slip - 2004-08-16 - Pacific Business News %28Honolulu%29
Hawaii home prices finally begin to slip
Now that the monthly home sales reports are in from all four operating counties, a trend is emerging in the Hawaii residential real estate market -- slippage from record highs.
Median home prices in July fell $1,800 on Oahu, $8,500 on the Big Island and $21,500 on Kauai compared to June. The Maui price was up $51,000 from June but down $53,000 from May.
Median home prices at a glance, based on July sales:
Maui: $567,000. Condos: $281,425.
Oahu: $480,000. Condos: $217,000.
Big Island: $280,000. Condos: $290,750.
Kauai: $506,500. Condos: $373,500.
Some real estate agents privately say that demand is beginning to abate, partly because rising prices have priced some people out of the market, and partly because in some areas all the good homes have been snapped up already.
"We're starting to get more buyer resistance," said Maui Realtor Roy Sakamoto. "I think we'll see that through the rest of the year. That's my hunch."
Honolulu Board of Realtors President Mary Begier said the affordability picture, at least in her area, isn't as bad as it looks, because more than one-third of homes and condos on Oahu are selling for $250,000 and less.
On the Big Island, median home prices remain below $300,000 southeast of Hilo but are hard to find below $400,000 on the Kona side.
Housing inventory is so scarce on Kauai that vacant lots sell in the same range as lots with homes on them. Of 36 vacant lots sold in July, the median price was $587,000, more than last month's median home price.
In some businesses, when prices are high, you make more widgets. But just as it takes a few years for cattle producers to respond to high price by growing more calves, it takes time to build more homes, and the permitting process can further extend the timeline.
Hawaii home prices finally begin to slip
Now that the monthly home sales reports are in from all four operating counties, a trend is emerging in the Hawaii residential real estate market -- slippage from record highs.
Median home prices in July fell $1,800 on Oahu, $8,500 on the Big Island and $21,500 on Kauai compared to June. The Maui price was up $51,000 from June but down $53,000 from May.
Median home prices at a glance, based on July sales:
Maui: $567,000. Condos: $281,425.
Oahu: $480,000. Condos: $217,000.
Big Island: $280,000. Condos: $290,750.
Kauai: $506,500. Condos: $373,500.
Some real estate agents privately say that demand is beginning to abate, partly because rising prices have priced some people out of the market, and partly because in some areas all the good homes have been snapped up already.
"We're starting to get more buyer resistance," said Maui Realtor Roy Sakamoto. "I think we'll see that through the rest of the year. That's my hunch."
Honolulu Board of Realtors President Mary Begier said the affordability picture, at least in her area, isn't as bad as it looks, because more than one-third of homes and condos on Oahu are selling for $250,000 and less.
On the Big Island, median home prices remain below $300,000 southeast of Hilo but are hard to find below $400,000 on the Kona side.
Housing inventory is so scarce on Kauai that vacant lots sell in the same range as lots with homes on them. Of 36 vacant lots sold in July, the median price was $587,000, more than last month's median home price.
In some businesses, when prices are high, you make more widgets. But just as it takes a few years for cattle producers to respond to high price by growing more calves, it takes time to build more homes, and the permitting process can further extend the timeline.
posted by DP at 5:46 PM
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