Great news for Oahu sellers. 2012 was one of the strongest seller markets we have seen in the past five years or so. The median sales price for a home on Oahu at the end of 2012 was $620, 000, up 7.8% since the same time last year while the median price condo sale was $317,500, up 4.8%. In 2011, Oahu median home sales were hovering around $575,000, and median condominium prices were at $300,000. The total number of sales increased as well, up 6.5% for homes and 8.2% for condominiums compared 2011. Low inventory can be attributed to the major reason why sellers received an average of 97% of their list price as opposed to 95% in 2011 as well as historic low interest rates and affordable housing prices.

While we already know what the past Oahu real market has been the past five years, looking ahead for this year is what really counts. In order to give you some insight into the 2013 real estate market here in Oahu, here are some predictions of what the Oahu and surrounding area real estate market may have in store for buyers/investors and sellers.

The Oahu real estate market in 2013:

  • Continued high buyer demand
  • Slightly more inventory attributed to bank foreclosures
  • Increase in sales and growth
  • Slower prices increases
  • Sellers can still expect to receive close to their asking prices because of the overall historic shortage of inventory.
  • Return to a more normal and stabile real estate market  

While the Oahu and national housing market have not fully recovered yet, expect to see a return to a more normal real estate market and sales volume with slower price increases here in Oahu. Sellers will still be able to seller their homes within 95%-97% of their list price, provided their homes are priced right. Some buyers/investors may wish that they had not waited to buy because high demand will continue to create price increases. Although, prices are still affordable and interest rates low. However, since no one knows for sure the outcome of unemployment numbers or how the new Obamacare will affect businesses and our economy, we will have to wait and see. Although, optimism and increased consumer confidence may help speed up our economic recovery. For the end of 2013, expect to see the Oahu real estate market returns to a more normal, healthy and stabile market.

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