Single Family Homes in Mililani
May 13th, 2008 by Harvey ShapiroThe Mililani community consists of a large number of homes built by Castle & Cooke over the past few decades. This neighborhood is geographically defined by the Honolulu Board of REALTORS® as Tax Map Key, Zone 9, Section 5 and part of Section 4.
Single family home sales have followed the islandwide trends, with sales dropping off during 2007, but seemingly abating this year. During 2007, there sere reported sales of 314 single family properties which was a decline of 9.8% from 2006 sales. This falloff was just ahead of the O`ahu overall drop in the same time frame of 10.2%. This year, in the first four months, 93 single family properties changed hands, a slight 1.1% decline from a year ago which was by far the best neighborhood sales performance on the island for this time period.
The median price paid for Mililani homes has been remarkably stable. The median price for 2007 was $630,000, the same as the O`ahu median, and this was a 3.3% increase from the median $610,000 paid in 2006. Prices were lower through April of 2008, but they exceeded those of 2007 by 0.5%. The highest price paid during 2007 for a single family dwelling here was $1,400,000 and was $915,000 in the beginning of 2008.
Sales occurred more quickly in this area than for overall O`ahu as shown by the Days on Market indicator. In 2007, this statistic was 39 days, four days faster than in 2006 and more than a week faster than for O`ahu as a whole. This year, the indicator is showing a longer time required to sell, 49 days, a slowdown from 37 days one year ago.
Speaking of stability, look at the number of homes for sale in Mililani. In April there were 94 available dwellings on the market compared to 93 at the same time last year, an increase of just one property, while inventory for all of O`ahu increased 13.3% in the same time comparison. The median asking price has declined somewhat since last April to $640,000.
For further information about recent activity in your specific neighborhood, check out the information available on the Honolulu Board of REALTORS® website www.HiCentral.com or contact a REALTOR® in your area.
May 14th, 2008 at 10:42 pm
Harvey,
This goes to what I was speaking of in one of my previous blogs. I stated areas such as Leeward, Central, and Windward Oahu will see more activity in the next months and less activity in East Oahu and Honolulu, thus impacting the medians. I think it’s a matter of affordability and new lending standards.
It will be interesting see what actually happens during the summer months. I see inventory growing at a rapid pace and sales slowing at an equally rapid pace. Can we expect prices to fall sharply over the next year or two?
May 15th, 2008 at 9:27 am
Russ: I think if we were on the mainland, I would definitely expect prices to fall sharply, but in Hawaii, I don’t think there has been a dramatic drop in prices, although I would anticipate a slight drop just because of the supply and demand factor.
May 15th, 2008 at 9:40 pm
HKMMM: There’s no dramatic drop in prices though I do see exisitng listings having multiple price drops. Perhaps it’s because sellers are still coming out pricing strong then later chase after sitting on the market for months before selling at a much, much lower price that they started at. Some would say, “missing the opportunity” to get a quick sale and higher price.
I see Oahu following the mainland and outer island trend. Leeward, Central, and Windward Oahu have already a softening trend. East Oahu and Metro Oahu will follow. If it’s about consumer demand, I’d say about 85% of people think the market is falling so demand will definitely drop in the coming months as buyers are waiting it out. There’s been very little activity at open houses lately. Sign in sheets are almost blank. However, over the past few days since the media has been hitting hard about the market cooling, I’ve noticed an influx of sellers entering the market perhaps trying to sell before the market really bottoms out. Supply is outpacing demand and it’s just the begining. Later this year and 2009 will have higher supplies.
I’m not sure why you think if we were on the mainland you would expect prices to fall sharply but not here. That’s am confused about. Why is East and Metro Oahu somehow imune from what going on most everywhere else in the country including most everywhere else in this state? Being last in line doesn’t mean it’s not in line.
May 16th, 2008 at 12:40 pm
Hi Russ: The reasoning behind me saying that if we were the mainland is because I heard a story on the national news of a couple who bought a home for 450k and they are now getting divorced and have to sell it for 100k less. I’m not sure if they over payed for their property in their area, but those stories are just unheard of here in Hawaii. I also thought about Las Vegas in that their real estate sky rocketed a couple years or so back and now they are too developed and people are losing money on places they thought were going to be great investments. I saw the development in Las Vegas similar to all those developments that are occurring now on the Ewa side, but I just have a feeling that even with those developments, we won’t end up like Las Vegas, I don’t feel dive in prices. I know there are a lot of other factors as well. I agree with you in that I can see sales slowing tremendously as well, but I don’t know about dramatic drop in prices.