Foreclosures in the State of Hawai`i have been on the rise and the federal government today introduced an initiative to forestall losing a home.
This program, “Project Lifeline,” was actually conceived by the five largest lending institutions in the US. If you’re a homeowner who’s behind in mortgage payments 90 days or more, this program calls for a 30-day reprieve during which you can negotiate with the lender to work out a more affordable payment plan.
This initiative applies to all types of loans, not just sub-prime loans which previously earned a 5-year rate freeze if a host of conditions are met.
The stock market reacted positively to this program, but time will tell if it’ll produce positive results, especially in Hawai`i.
Sales in this well-established area have been strong and median sales prices advanced in 2007. For research purposes, the Downtown-Nuuanu neighborhood is defined by the Honolulu Board of REALTORS® as Tax Map Key , Zone 2, Sections 1 and 2.
For the 2007 year, this area had one of the smallest sales declines on O`ahu. There were reported sales of 342 units compared to 349 in 2007, a manini drop of 2.0%, compared to the 13.8% decline for condominiums islandwide. There were 28 condo sales here this January, compared to 34 a year ago.
The median sales price increased from $315,000 in 2006 to $349,000 last year, an increase of 10.8%. The priciest condominium unit in this neighborhood sold for $1,950,000 in 2007, whereas the highest sale in 2006 was $1,078,000.
Sales in this neighborhood last year were quicker than in 2006 by two days, with the Days on Market indicator at 40 days, from listing date to an Agreement. This sales speed was faster than the overall O`ahu statistic of 42 days.
For further information about how your specific neighborhood performed, check out the Honolulu Board of REALTORS® website www.HiCentral.com or contact a REALTOR® in your area.
The Wai`alae-Kahala neighborhood is not only a beautiful area but it is situated at the end of the H-1 freeway and it is home to the most expensive dwellings on O`ahu. For research purposes, the Honolulu Board of REALTORS® defines this geographic area as Tax Map Key , Zone 3, Sections 5.
Sales in this residential area have been solid and even increased in 2007. There were 136 reported sales for the year, compared to 127 in 2006, an increase of 7.1%. This sales expansion is counter to the overall O`ahu statistic of a 10.2% drop in single family home sales. In January this year, only 7 sales were completed, as opposed to 15 a year ago.
The median price paid for a property in this neighborhood was $1,400,000, both in 2007 and 2006. Notably, this is the only neighborhood on O`ahu with a median price above $1 million, and even with fewer sales in January, the median price was $1,351,000. The highest sale during 2007 was $11,250,000 and this sale was significantly higher than the 2006 maximum sale of $9,000,000.
The Days on Market indicator, from listing date to an Agreement, was 46 days in 2007, one day faster than for overall O`ahu. In 2006, this figure was much higher, at 75 days.
For further information about how your specific neighborhood performed, check out the Honolulu Board of REALTORS® website www.HiCentral.com or contact a REALTOR® in your area. If you have an area you’d like analyzed in this blog, please leave me a comment.
Sales for January, as reported today by the Honolulu Board of REALTORS® (HBR), came in pretty weak but this wasn’t unexpected. The prices, however, were at current levels and in line with estimates.
Dana Chandler , newly-elected President of HBR, said, “We continue to be fortunate that sales prices on O`ahu are being maintained at 2007 levels. The first couple months of each year are historically slow in the housing market, but there are many buying opportunities for O`ahu properties as demand has dwindled and sharp buyers and sellers should be able to negotiate mutually beneficial sales agreements.”
There were reported resales of 228 single family homes and 342 condominiums last month. A year ago, these numbers were 263 and 418, for sales decreases of 13.3% and 22.5%, respectively. Leeward O`ahu single family home sales held up the best, down only 7.6% from last year. On the condo side, East O`ahu bucked the downward trend and added 42.1% in sales.
The median prices paid for properties in January were $600,000 for single family homes and $324,000 for condominiums. The single family home price was exactly the same as last year and the condominium price advanced by 1.3%.
If we look at the geographic regions, we get a different picture. The single family prices in both Metro O`ahu and on the North Shore were more than 20% higher this year. For condos, the median price in East O`ahu rose by 5.8%, to $545,000.
The all-important dollar volume dropped but, thanks to higher prices, not as much as the sales. Total dollar volume for January was $345.5 million compared to last year’s $368.9 million, a decrease of 6.3%, or $23.4 million.
In my newspaper quote, I said, “The local economy appears to be poised for a slowdown, but the weaker dollar could attract new demand from overseas purchasers. Look for both adjustable and fixed mortgage rates to continue downward, making financing for those who can qualify much less costly.”
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Interest Rates For This Week
In the Federal Reserve publication (H.15) of interest rate indexes (not indicies ), the 1-year figure fell 8 basis points, to 2.23, and the 10-year number was 3.67, which is up from last week by 9 basis points.
The Pearl City-Aiea neighborhood is in the center of the island, above Pearl Harbor, and is home to many condominium projects. For research purposes, the Honolulu Board of REALTORS® defines this geographic area as Tax Map Key , Zone 9, Sections 6 through 9.
Sales declined significantly in 2007, but the median sales price paid for a condo was higher. There were reported sales of 431 units in 2007, down 25.7% from 2006. In December, 29 units were exchanged which was a drop from 40 one year ago.
The median price paid for a condo in this area was $302,5000 during 2007. This price was an increase of 4.3% from 2006 when the median price was $290,000. The median price returned to 2006 levels in December, at $290,000, compared to $317,000 at the same time a year earlier. The highest price for a condominium in 2007 was $546,000.
The Days on Market indicator, the time from listing date to a contract, was 34 days for 2007 which was more than a week faster than for the rest of O`ahu. The sales speed was slower by 4 days, however, from the prior year.
For further information about how your specific neighborhood performed, check out the Honolulu Board of REALTORS® website www.HiCentral.com or contact a REALTOR® in your area. If you have an area you’d like analyzed in this blog, please leave me a comment.
