#1: Homes are selling faster

(MLS data, 06/19/2018)

The median and average DOM (days on market) for properties in Kakaako have been steadily decreasing since the beginning of 2016.

What this means: Homes are selling at a quicker rate than ever before. For potential buyer’s this means there is strong competition for quality inventory as Kakaako continues to improve and develop.

#2 Kakaako median home prices are steadily increasing

(MLS data, 06/19/2018)

The “median sales price” is the sales price in the middle of our data set when we arrange all sales prices from low to high. We have used the median sales price instead of the “average sales price” to eliminate any extravagantly high outliers (which Hawaii real estate tends to have) that can skew the average sales price up.

We can see a general upward trend going from $500K in 2009 up to the $800K-900K range in 2017-18.

What this means: The median sales price suggests what you can be expecting to spend on a home in Kakaako. This likely represents the price range of a 2 bedroom or 3 bedroom condominium depending on which building you are looking in. The gradual rate in which the median prices have increased suggest a healthy market which doesn’t show signs of slowing down.

#3 Close Price to List Price Ratio is decreasing

(MLS data, 08/02/2018)

The Close Price to List Price Ratio represents the average percentage of price a buyer has paid of the asking price of a home for sale in Kakaako. We can see a slight downward trend since October 2017 from a high of over 100% to 97.5% in July 2018.

What this means

When the ratio exceeds 100%, this typically means sellers are receiving multiple offers at or above asking price.A ratio close to 100% indicates that there is a little leverage for potential buyers at the moment, if even just a little. 

Summmary

With homes selling quicker, prices rising higher and offers close to 100% of asking price, trends are indicating a healthy market with strong demand for home in Kakaako. Now may be the best time to get in the ground floor of the fastest growing neighborhood in Hawaii.