If you have been competing for housing on Oahu, you won’t be surprised to hear that sales prices are exceeding list prices. But, did you know that according to the Honolulu Board of Realtors, the number of single-family homes that sold over the original asking price was up 168.1% in the fourth quarter of 2020? Wow!
Low Inventory on Oahu
The increase in competitive bidding was also felt in the condo market. The number of condos that sold over the initial asking price rose 93.2%! What accounts for these trends and increases? You guessed it — it all boils down to inventory, or lack thereof. Lower interest rates have given buyers more purchasing power, but short supply has pushed the prices up. Way up in some instances.
Buyers Looking For More Space, Away From Town
It’s also interesting to note that the highest annual sales increases for single-family homes occurred in Kailua, the North Shore, and the Ewa Plain regions. Could it be that Buyers are navigating away from town? The pandemic does appear to be influencing Buyer decision-making. The desire for less congested neighborhoods and larger living spaces seem to be on everyone’s “must-have” lists. Even among condo Buyers, we saw a 31.7% increase in sales for condos with four or more bedrooms.
Will These Trends Continue?
It’ll be interesting to see if these trends continue in 2021. Only time will tell, but if the first two weeks in January are any indication, homes selling over the asking price are here to stay. At least for a while.