Oahu Luxury Homes Continue To Be Buyer's Market
CLICK HERE To View $5 Million + Listings
This is an update to an earlier article examining the activity in the $5MM plus waterfront homes on Oahu. The article below was written in June of 2009 and since that date, another 6 homes in this category have sold out of 31 listings currently available.
That would be one home sold every 45 days more or less, which would translate to the 31 homes currently on the market providing a 46.5 month supply, assuming there were no new listings added to the inventory.
As the article below suggests, it continues to be a great time to pursue a luxury home on Oahu and to choose from a large selection. To be honest, I thought the sold homes might have been higher than the 6 I found, as the market is definately turning in the lower ranges. But as of yet, the buyer enthusiasm has not reached this price range. Here is a little breakdown for you:
3 of the sales were in the $5MM range and sold at discounts to list price of 20%, 15% and 8%.
1 of the sales was in the $6MM range and sold at a discount to list price of 15%
2 of the sales were in the $7MM range and sold at discounts to list price of 15% and 20% respectively.
For those who are paying attention, that means for the folks who are selling ocean front homes in excess of $10MM, there has not been a sale in that price range and category since August of 2008 and it could be a great time to change that.
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For the earlier article, continue below:
Enjoy the Best of Oahu !
To view the current listings Click here .
For the discriminating buyer, the possibility exists that we have now entered the best market to purchase Exclusive properties in Hawaii in years. I've created a link to a website located at the top of this article to view these properties, but thought I'd also spend some time on why I believe the market may be perfectly positioned to acquire these properties now.
As we sit today in the $5MM plus market, there are currently 38 properties available. In the past 6 months, there have been a grand total of 4 sales in this price range in the criteria that I am analyzing which is waterfront properties. The last 2 of these sales were recorded in March of 2009 with the 2 other properties having closed in December and January. In other words, up to 38 homeowners have been waiting over 3 months for someone to purchase their property and no one has come forward.
At the past 6 month activity level, it would take 5 years to deplete the current supply of listings and at the past 3 month level (zero), it is what one could aptly describe as a market that could be within the complete control of a capable buyer. To put this into a historical perspective :
2008 totals 14 closed sales 17 active listings at year end (38 June '09)
2007 totals 9 closed sales
2006 totals 12 closed sales
2005 totals 8 closed sales
2004 totals 9 closed sales
As you can tell from the numbers above, while 8 to 14 sales in this price range and category are the historical range per year, with no sales and no pending sales currently identified on the MLS for the past 3 months, what a great climate to present an offer to a seller that is cash and priced according to the current market conditions.
The search link below is to provide you with an idea of what is currently available. If you would be more interested in having a personalized search prepared for you or would like more information on my market feel free to contact me by email or give me a call at 808-225-3660.
I have made the business decision to only represent purchasers in this price range of homes which allows me to fully represent the purchaser's interests, aid in negotiating strategies and aggressively seek the best terms available for my client, the purchaser. To further avoid potential conflicts with my existing client's interests, before I am able to accept additional clients in this price range, I seek approval from my existing clients.
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Ocean Front for under $1MM This listing is HOT!
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Michael Hege' RA
Kapolei Realty, Inc