ResalesHonolulu: Improved Market Attracts Buyers
Honolulu, the state capital of Hawaii is considered the cultural as well as the political center of the Islands. It"s also the leading destination of visitors. Many stay and enjoy the white sands of Waikiki Beach, while others use Honolulu as a base to puddle-jump to the other popular Islands.
From the moment you disembark from your plane or boat and get a lei greeting of flowers put around your neck, you"ll know why Jack Lord stayed on long after his series Hawaii 5-0 left the airwaves. Tropical beauty mixes with a rich, emotional history, as visitors go from the beaches and mountains where they can forget their cares to Pearl Harbor and the sobering sight of Battleship Row, where the listing rusted hull of the USS Arizona recalls the terrible attack that brought America into World War II.
Time heals all wounds, and by the 1990s, Hawaii was a favorite place for Japanese investment and recreation. The Japanese recession of the last decade affected Island real estate profoundly, but Realtors are saying that Honolulu is back to a brisk seller"s market.
"Honolulu represents the "best of both worlds,""" says Realtor George Krischke. "Living in a tropical paradise with top-ranked beaches, hiking trails and perfect climate year round, together with all the benefits a cosmopolitan city."
"This is truly the best market for buyers and sellers we have seen in years," says Krischke. "How could it be great for buyers and sellers? Well, here is why. Mortgage rates are at record low levels (not seen since 1967) and prices are still attractive (compared to where prices have been during the past 12 years since the market peaked in 1990). Great for buyers. However, since 1997, steadily increasing buying demand has been "absorbing" the available inventory to levels not seen since records were kept in 1986. Great for sellers."
Says Krischke, "The median sales price for single-family homes in the metro Honolulu area "year-to-date through 6/30/2002" is at $380,000 (up 15 percent compared to last year) and $155,000 for condominiums (up 3.3 percent compared to last year same time frame)."
"For single family housing, the market in June remained strong," explains Realtor Barbara T. Erskine, "but the median prices and number of units sold decreased from May. The median price in June was $330,000 island-wide, and 339 homes sold. But condos saw the highest median price since October, 1997, $158,000, up 6.8% over May. There were 413 units sold in June, compared to 468 in May.
"Through the first half of the year, prices are rising for both single family and condo housing, up 10.5% over 2001 for houses and 7.5% for condos. Numbers of homes sold are also up substantially, 11.3% for homes over 2001 and 15.7% for condos. Experts generally believe the strong demand reflects a shift of money out of the stock market into real estate, and the support of continued low interest rates."
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