The Honolulu Board of Realtors released its newest data today that backs up what I’ve been seeing for the last few months.  Sale prices for single family homes are off 9.2% from a year ago, bringing the median sale price down to $590,000.  The median price hasn’t been at that level since 2005.

Sale prices for condos are off 11.6% from September last year, bring the median condo sale price down to $296,000.  Prices had been holding steady for this year and even creeping up, even as demand was down, but now that’s given way to harsh market realities.  For Waikiki, one of my main areas of focus, prices dropped almost 20% from a year ago.  Building to building, you will find a wide range of prices for the same basic layout, and some of those are really priced to sell now.

This information is based on closings, so in many cases these were deals put under contract 2-3 months ago.  Even though previous market reports were not showing big declines in prices, in fact prices were declining as many sellers finally realized they had to lower prices to attract shrinking demand.  The statistics are now confirming what has anecdotally been the case.

One looming question for buyers and sellers is whether this will be a continuing trend of declines or whether prices have reached a certain low plateau.  No one can be sure, especially with the economy and financial crisis so up in the air, but if you’re a buyer betting on the low plateau, now may be the time to act.  Loan guidelines are still tight, but there are lenders (local lenders and banks particularly) who are still looking for qualified borrowers.   

If you are a seller and you need to sell sooner than later, my advice continues to be that you need to keep your property in top showing condition, maintain realistic expectations, and most importantly, price your property aggressively as compared to the competition.  Buyers have plenty of options right now, and if you’re priced in the middle or above the direct competition, your chances of generating an offer drop considerably. 

If you are a seller unsure of your position relative to the market and could use some advice, please get in touch with me.  If you are a buyer interested in uncovering the best values, I can put my expertise and resources to work for you.  Or if you would like to speak to a lender but aren’t sure who to call, I can recommend several good loan officers.  Just contact me at (808) 349-8665 or Scott@elitepacific.com, or Miki at (808) 349-8668 or Miki@elitepacific.com.

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