Honolulu (KHON2) In this edition of Living Akamai we asked Kay Mukaigawa of Engel and Volkers if the real estate market is still crazy and if she could explain what happened last year.
“Yes, the market last year was very strong and in August of 2021, median prices for single family homes hit over $1 million for the first time ever. They teetered up to $1,050,000 and our year ended with median prices at $990,000 for single family residences. The condo market on Oahu was as strong as ever too.”
Kay has spoken many times about the 1031 Exchange and we also wanted to know more about what the market looks like right now as well as the inventory.
“It continues to remain strong and single family residences still command a very high demand. There’s simply not enough supply and even if COVID numbers drop, the work from home concept will likely not go away. On the single family sector, we currently have less than a month’s supply available for buyers.
Six months is seen as a balanced market. If there’s over six months of supply, it’s a buyer’s market. Under six months of inventory would mean it’s a seller’s market. With less than a month’s supply, we are definitely in a strong seller’s market today To calculate this absorption rate, we divide the number of available listings by the number of sold transactions from the prior month. Simply put, we have a lot more demand than supply.”
Those looking for more information about this and other topics, visit evrealestate.com