Market Update for

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Market Update for Hawaii Developers Council
Harvey A. Shapiro Research Economist Honolulu
Board of Realtors Email harveys_at_hawaii.rr.com
July 21, 2005
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HDC
7/21/2005
Why is the Oahu housing market soaring?
High Demand for Housing
Low Financing Costs
Extremely Limited Inventory
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HDC
7/21/2005
Results for the First Half 2005
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HDC
7/21/2005
Increased demand has resulted in HIGHER PRICES
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577,800
257,000
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HDC
7/21/2005
Residential properties are selling faster

• Median number of days properties were on the
  market before sales agreement (listing date to
  contract date)
• Year Single Family Homes Condominiums
• 1995 72 82
• 67 80
• 56 67
• 2001 45 42
  
• 26 27
• 2005 2nd quarter 17 17

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HDC
7/21/2005
PREMIUMS are being paid for residential
properties

• Percent of Properties with sales prices gt asking
  price
• Year Single Family Homes Condominiums
• 1995 1.7 2.2
• 1997 4.0 4.5
• 1999 7.1 4.7
• 2001 11.2 8.9
• 18.2 10.4
• 2005 2nd quarter 28.0 26.2

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HDC
7/21/2005
Inventory is extremely limited
The number of available listings being actively
marketed is now only a fraction of what was
available in the early 1990s!
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HDC
7/21/2005
Historically low mortgage rates
Watch Out Theyll be rising!
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HDC
7/21/2005
However, Oahu properties are currently more
AFFORDABLE than theyve been!
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Estimate
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HDC
7/21/2005
In Summary
Residential sales expansion for thirty-two (32)
quarters
Price appreciation continues
Properties are selling significantly faster
Premiums paid above asking price
Inventory availability continues low
Affordability is still very favorable
Sales in 2005 will be similar to last years and
prices will increase about 20 - 25 Another
EXCELLENT year for residential real estate!