MARKET REPORTINTEGRITY - HONESTY - EXCELLENCE

2009 Average Sales Price Per Transaction for Top 9 Oahu Brokers in Sales Volume

View Larger Graph As part of Choi's commitment to excellence, our Market Report ensures that each client has access to the most up-to-date real estate market information for their specific needs. Buyers and sellers can obtain current information and statistics that allow them to stay apprised of market developments, alert them to dynamic trends, and ultimately enable them to make practical, informed decisions on their investments.

View the latest Honolulu Board of Realtors' MONTHLY STATISTICAL REPORT which analyzes residential resale activity on the island of Oahu.

STATISTICS FOR LUXURY SINGLE-FAMILY RESIDENCES - HONOLULU, HAWAII

The Home Market in General - On March 3, 2010, one of the city’s daily newspapers, THE HONOLULU ADVERTISER, reported on its front page: “Oahu home on rebound – Healthier market boosts sale price 2nd consecutive month” – citing the median price of homes rising 7.3% for January & February 2010, that sales volume increased to 21.7% and inventory had returned to 2005 levels.

This is indicative of the market as a whole and is contrary to what is happening in the luxury market nationwide. It should be clear that the real estate market in Hawaii is much more stable than the mainland.

The Luxury Home Market for Single Family Residences – For those who are not familiar with Honolulu real estate, the highest priced single family residences are in the Kahala and Diamond Head neighborhoods. There are other neighborhoods that may have greater sunrises or sunsets and better beaches, but the luxury market is shaped by what happens in Kahala and Diamond Head.

The Kahala neighborhood is one of our luxury markets with a significant inventory of homes between $1,000,000 and $29,000,000 and a sufficient number of transactions to reflect what is happening in the Honolulu luxury market in general. 

Last year in 2009, the number of sales in Kahala was almost identical to the previous year and the number of sales in Diamond Head were slightly higher. Sales prices were lower, which supported our day to day observation that the market has picked up due to the lower prices. As the year ended, we noted momentum in the market and it was “our expectation that the market will be busier in the first quarter of [2010] than in the same period in [2009]. . . .December 2009 was a good month and we think the momentum is continuing in January.”

In January 2010, there were 4 sales in Kahala, the same number that were sold in January 2009. The difference was that the median price this year was $2,008,250 versus 2009’s median price of $1,650,000. In effect, the median price in January 2010 rebounded to match the median price of $2,025,000 recorded for the year in 2008. 

In February 2010, there were 3 sales (2 by Choi International) in Kahala with a median price of $1,250,000 compared with 3 sales in February of 2009 with a median price of $1,235,000. 

Looking at the year-to-date statistics, there were 7 sales in Kahala during the January & February time period in 2010 and 6 sales for the same period last year.

Even more striking are the Diamond Head statistics, which show 3 sales in January & February of 2010 in contrast to no sales in 2009. 

The numbers are still small for statistical purposes. Choi International’s high sales of $3,500,000 in Kahala and $3,150,000 in Diamond Head can skew the prices higher. It is too early to tell what these statistics will mean, but it was a good start to 2010 and it will be interesting to see what occurs for the rest of the year.

We don’t know if this trend will continue, but what is clear is that despite the economic woes in the rest of the world, the best properties in Honolulu are selling, mostly to people moving here, returning to the islands or to local residents who simply need a place to live. January and February of 2010 saw the return of second-home buyers to the market, which is encouraging. It is not a supercharged real estate market, but it is a market that appears to be reflecting the value of worldwide demand for a temperate climate, pure air and water, safety, terrific health care and for an island culture that appreciates the natural beauty of a tropical paradise.

The Need for Detailed Neighborhood Information - What we have reviewed above are general trends, but general statistics are not very useful in determining the state of the market in a given luxury neighborhood. For example, general market information can be found in the Honolulu Board of Realtors' Monthly Statistical Report for February, which was released on March 1, 2010.

The difficulty with the HBR statistics is that they provide a skewed view of prices in micro-neighborhoods with luxury properties, such as Kahala and Diamond Head. For example, the “Kapahulu-Diamond Head” neighborhood cited on page 6 of the Monthly Statistical Report states there were 7 sales in February 2010, but in actuality there was one sale in the Diamond Head neighborhood that is definitely upscale and, apparently, 6 sales in the lower priced Kapahulu neighborhood. Similarly, the statistics for the report’s “Waialae-Kahala” neighborhood also reflects sales figures from an over inclusive geographic area. The sales for just the Kahala area are noted above.

Given the need for more focused market information for the luxury neighborhoods, it is apparent that Buyers and Sellers need help from agents specializing in luxury real estate. Choi International’s agents have accrued the highest per sale average of the 9 largest companies in Honolulu, because we specialize in the luxury home market and have vast market knowledge to assist our clients in the purchase or sale of high end homes.

The best way to determine what to buy or sell in a specific neighborhood is to have your real estate agent prepare and review a Comparative Market Analysis with you. For example, the MLS service permits us to do searches within very discrete neighborhoods, like Kahala, Black Point, Diamond Head, Lanikai, Kailua Beach and others. It has been our experience that those neighborhoods are less volatile than the market as a whole, reflecting the worldwide demand for spectacular Honolulu properties in outstanding locations.

Choi International stands apart from other companies in our emphasis on representing buyers and sellers of exceptional properties. For further information, please feel free to e-mail us at hawaii@choi-realty.com or call us at 808-734-7711.