For the first time since I have been selling Real Estate the Median Sold Price for a Single Family Home in April ’09 was $585,000. This is primarily due the amount of homes selling predominantly on the West Side of the Island in Neighborhoods of Ewa, Kapolei and Makakilo.
Compounding this trend is the fact that most of the Short Sales and Foreclosures are occurring in these same areas and each time a new Short Sale or Foreclosure records as a sale, each one brings down the value of the homes surrounding these distressed property sales.
It would not be prudent to continue with this article without lambasting the City and County Government for raising our taxes on almost everything they can possibly think of. What’s next? Tax on the air we breath?
What do taxes have to do with Real Estate? Well, if you are thinking about either selling or buying a home you might want to think about what all these new taxes are going to do to your closing costs, your ability to sell or buy property, the effect upon our crippled economy and subsequently, overall real estate sales.
ACS % is determined by dividing the amount of Just Accepted Offers (only 4 day old data) by the entire inventory for sale. This gives a true measure of how healthy the market is doing. Inventory for sale plays a big part of the ACS figure. If the inventory is inordinately high then it is most likely the ACS % will be lower. Conversely, if the inventory for sale is low the ACS % will most likely be higher.
It is also important to note that if the amount of Just Accepted Offers are zero or a very low number the ACS % will be lower as well.
Demand as evidenced by the ACS % is picking up and way up from this time last year!
ACS %’s are not high for Condos! The demand for Condos right now remains low, as they should, because Condos are leading the downturn in this market. Although the demand has risen dramatically since December ’08, a 17% ACS is nothing to rejoice about. Consider the theory that Condos are affordable and should be one of the most sought out investments right now and in years to come. As a real estate investor, my plan, which I recommend my readers to follow, is to watch the Condo market closely and look for the bargains that are available. Invest in the right one for you and in years to come as the market stabilizes I believe you will see a solid appreciation in Condo prices as they will become a key area of interest for investors.
Mililani Mauka is off the charts!
Please remember when you want to rejoice about numbers you see like the one above in this graph for Mililani Mauka Condo Sold Prices, you must realize that this number is the result of higher priced condos going into escrow and recording as sales and that this is a typically a 45 day process. It does not necessarily mean that the Mililani Mauka home values are rising. Look for long term graphs and data like Quarterly Reports to determine whether or not home values are increasing or decreasing.
Remember when you are about to rejoice with high ACS % data you still have to realize that the amount of sales are down, way down, for many neighborhoods all over the Island. This is an overriding factor for all Oahu sales right now. We can only hope that with the higher ACS figures we will see higher sales numbers come to fruition.
A close eye should be leveled upon the Median Sold Prices and the number of Sales of areas in West Oahu, particularly Ewa. Since most buyers are choosing to purchase in West Oahu because of affordability we may be able to assume that when we see a flattening out or bottoming out of these numbers and shortly afterwards, the numbers begin to rise, we might be in a new rising market. However…timing a market is almost impossible.
For those folks who are either buying or selling in West Oahu you have the ‘get out of jail free card’ today, as you will no doubt sell your property a lot sooner than most folks selling at or below the Median of $585,000 on this Island.
For those buyers who want a much newer home at great prices…
”Head West Young Man…Head West.”
On a Final Note…New Information for Home Buyers and Sellers…On the Internet
”What makes choosing one Real Estate Brokerage over another to sell or buy a property for you?”
There are many factors that will need to weigh in your decision in choosing one brokerage over another to help you with your real estate. More important factors should be:
1)Has the brokerage had any experiencing in selling or buying homes in your neighborhood of choice?
2)Ask the same question for the agents you are interviewing. Ask for their “Production Report” since the time they were licensed. I cannot stress the importance of this enough.
3)Does the agent and Brokerage have a strong internet presence? Are they leaders in this area?
Now the percentage of internet buyers looking for their home choices on the internet has risen to 87% as of 2008 and rising.
It becomes critical for both a buyer’s or seller’s success that the internet searches provide the most exposure of seller’s properties and the most resources for buyers.
How is the best internet search conducted?
In a word…GOOGLE!
Here is the key to Internet Home Searches: Google Search: “HAWAII REAL ESTATE”
I recently became aware of the following website on the internet that quickly became one of my favorites - HawaiiLife.com. I believe you will be fascinated in finding what this website will do for you.
The Main Page Looks like this:
This website utilizes MLS Systems from All Over Hawaii! Mulitple MLS’s-One Website! Click on Any Island and you will get all listings.
You can click on any listing on the Map or click on any listing in the Left Hand Column of Photos and it will bring up al details of the listing.
Here we have chosen the parameters of Kailua between $700,000 and $1.5 Million. You can either click on the listing on the map or the left hand column to receive full details of any listings
Then you click on Details and see full MLS details.
You can even Zoom In and Out from the Listing Locations.
The point I would like to make with you is:
Use Websites that will give you more…More Exposure to a Wider Audience and Wider Exposure to More Resources.
The available choices of internet sites to use are astronomical and it is your responsibility to seek out the ones that you feel will give you what you want.
I encourage you to explore all the internet has to offer in doing your Real Estate research. You will of course have to choose the Search Engine that will produce the widest range of options as well as the most popular options according to the number of “hits” or “views” a website receives. This is how search engines partly decide which sites to list in descending order, first, second, …
My favorite choice has always been Google for a Search Engine. You might like another search engine. Explore Search Engines.
Remember this: 87% of all buyers use the Internet to find a home.
If you need advice or particular data for an area, I probably have it or I can get it. Feel free to contact me with your questions, concerns or opinions at Mikeg@hawaii.rr.com
Much Aloha, Mike Gallagher Broker in Charge RE/MAX Honolulu Ethics Complaints Review Committee Member-Honolulu Board or Realtors
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