Oahu Real Estate Update Q1 2011

This is the Oahu Real Estate Update for the first quarter of 2011 brought to you by Kahala Associates - http://www.KahalaAssociates.com.

Unemployment rates among the lowest in the country continue to bolster Oahu's economy, allowing for year-over-year gains in the number of homes and condominiums sold and helping to keep prices relatively stable in the short term and extremely stable during the recent recession which continues to effect many other markets.

Compared to the 1st Quarter of 2010, the number of Closed Sales increased 3.6 percent for single-family homes and 7.1 percent for condos. Year-over-year gains in purchase demand testify to the strength and appeal of our unique island home.

In pricing, condominium values gained some ground last quarter with a 4.1 percent increase in Median Sales Price to $315,000, while for single family homes, a surge in the sales of lower valued homes on the island caused the Median Sales Price to dip by 5.3 percent to $559,000.

As expected, home values are neighborhood specific and appreciating values are equally common. Contact us for help determining your home's value.

Finally, Months Supply of Inventory -- an indicator we watch closely, continues its decline posting a 1st quarter supply of single family homes at 5.6 months and for condominiums, an even 6 month supply.
While a 6 month supply points to a balanced market, activity below the 6 month marker is usually one of the first signs that a Sellers market is on its way; good news for Sellers as we enter the 2nd and 3rd quarters; historically busy selling periods.

Buyers are also well situated right now with interest rates still below 5.0 percent on 30-year fixed mortgages, however the shrinking supply means Buyers need to be pre-qualified and ready to move quickly when its time to make an offer. Multiple offers from competing buyers are not uncommon for well priced, well presented homes at this time.

Current talk about increased mortgage lending restrictions and signs of a Seller's market on the horizon should give ready Buyers the green light to move forward at this time.

For more information about the Oahu real estate market, visit the Market Trends page of our website -- "Kahala Associates.com". Simply click on the "Trends" menu of our home page. There you'll also find our Luxury Market Trends report with information specific to the $1 Million Plus real estate market.

Until next time, that's the Quarterly Market Report from Kahala Associates for the 1st Quarter of 2011.

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