Monthly Archives: September 2011
Good news for those that think Honolulu real estate is spendy… according to these statistics, here in Hawaii we look pretty good! Honolulu, at $614 per square foot, isn’t the cheapest in the U.S., but we are far from being the most expensive, with Manhattan, New York at $1,068 per square foot. Compared to Paris at $3,287 and Oslo, Norway at $2,099, our real estate looks affordable!
Here’s what Colin Dobrin of Credit Sesame has to say:
“That the real estate market is in turmoil is hardly news. In fact, U.S. new-home sales fell yet again in August, hitting a six-month low, according to the Commerce Department. The median sales price moved in the same direction and is now at 7.7% below year-ago levels. With bad news hitting the real estate market month after month, it’s easy to lose sight of the bigger, global picture. Namely, even though many economists predict that prices may continue to fall, thus expressing a view that U.S. real estate is still over-priced, real estate in America’s top cities is cheap when compared with the rest of the world. Consider this: at an average $1,068 per square foot, Manhattan real estate is prohibitively expensive for most Americans- yet is more than three times cheaper than real estate in Paris, an average $3,287 per square foot. In this infographic, we put America’s real estate prices in a global perspective.”
By Paul H. Brewbaker, Principal, TZ Economics
Oahu Housing: Double-Dip? Or “just” complexity….
- This was not Oahu’s worst recession; not its worst recovery
- Employment gains much larger on Oahu than on neighbor islands
- Unemployment rate on Oahu would be third lowest in the country if Oahu were a state (less than 5%, approximately the “full employment” rate for US.)
- Tourism: a big shock from Sendai, in a travel segment that currently is only one-third its share of Hawaii gross product compared to the early- to mid-1990’s
- Domestic travel “recession”, 2010 recovery, and 2011 erosion illustrate the importance of lift (capacity) and energy costs, two supply-side factors
- Oahu housing markets tight- lack of inventory, foreclosure overhang of secondary importance, months of inventory remaining low compared to 1990’s cycle- possibility of appreciation beginning as soon as the end of 2012
- All Oahu’s domestic tourism loss occurred between shutdown of Aloha Airlines and shutdown of Lehman brothers, from March to September 2008, sustained recovery will require additional scheduled seats
- New Asia markets are bright spot for travel (plus Canadian oil)- non-Japanese visitor arrivals, excluding Canada, rising almost 50 percent per annum; new direct flights bode well for investment
During the month of August, the highest sale on Oahu for a single-family home was a massive 6,300 square foot, home on Kahala Avenue, which sold for 4.9 million. The highest condo sale was a 2 bedroom, 2 bathroom unit on the 35th floor of the Hokua Building for 2.5 million.
In August, there were 68 new single-family listings over 1 million, and 44 closed sales over 1 million. There were 29 new condo listings over 1 million, and there were 7 closed sales over 1 million.
The median price paid for island properties in August was $560,000 for single-family homes, and $310,000 for condominiums, which is a decrease of 12.7 percent for single-family homes and an increase of 2.3 percent for condominiums, compared to the month of August in 2010.
According to the days on market indicator, sales of single-family homes closed at a faster pace last month than a year ago, with single-family homes listing for 31 days. Condominiums closed at a slower pace last month compared to a year ago, listing for an average of 44 days.
Interest rates are currently at an all-time low starting at 3.75% with 1.521 points, to 4% with zero points! Check with your mortgage lender for options to fit your personal needs.
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Entrance leads to a grand two-story lobby. Security features an intercom, keyed elevators that allow residents to only travel to their floor and private guard. Air conditioning is central. Guest parking available. There are some commercial units at street level facing the mall.
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