Will Hawaii home values continue to rise?

Will Hawaii home values continue to rise? The latest data shows that the Oahu market is tightening.  The tightening, specifically in the single-family home market, has contributed to a 13.9% increase in the Hawaii median sales price to $625,000 from March 2011 to March 2012. The Hawaii real estate market conditions are poised to show fewer listings coming on the market and therefore the median sales prices would continue to rise.  The March data clearly shows the beginning of this trend.

There are several points to consider for the March data.  Firstly,  the number of new listings is falling.  Year over year it is a stark decline of 20%.  The months of inventory (which the time that it would take to sell all of the current listings, if no new listings came onto the market) has declined by nearly 26% to 4 months.  That means at this rate, if no new listings came onto the market, all of the current inventory (listings) would be sold in 4 months.  Also, the pending home sales has also risen to 7.5% means that the current inventory is being bought more quickly than a year ago.

There are many indications that the trend of a tighter market coupled with higher median sales prices will continue.  With mortgage rates still so very low, if you are thinking about buying perhaps you should consider buying now.