The median price of Waikiki condominiums is up 29% for the year according to the Honolulu Board of Realtors. But does this mean each and every Waikiki condo is worth 29% more this year than last? Does it mean you have missed your chance as a buyer to get a great buy? Not quite.
It’s a combo of two factors, an overall rise in prices – last year the median sales price for condos was $280K and this year it is now $360K up 29% YTD as of Oct. 31 – coupled with a doubling of sales in the mid-priced condo market. Put these two together and you get a remarkable rise in median prices and what I would describe as a “hot market.”
What Does This Mean for Waikiki Condo Sellers?
For sellers it means that your condo is most likely worth a bit more this year than last. There are simply fewer condos on the market. Low interest rates and positive national news for the recovery in real estate is leading to more and more buyers.
What I am seeing for the most part is a modest rise of 5-10% or so, year over year for most condo complexes here in Waikiki. Not all. Some are stagnant and a few are still dropping. The big change is the doubling of sales activity in the mid range condo market for condos priced from $400,000 to $700,000. In October of 2012 twice as many condos sold in this range as in 2011.
The under $400K value condo market saw approximately the same amount of sales as did the luxury over $700K range. So if you had your condo on the market in the last year or two and it was priced in that $400-$700K range and you didn’t sell, now may be the time.
If you are wanting to sell your condo and trade up now would also be a good time, especially if you want to move from the lower range to a higher range. Most agents are happy to offer a Free Market Analysis. They are usually available just for the asking. If not, I am always happy to voice an opinion on the current market value of your condo.
What Does This Mean for Waikiki Condo Buyers?
As for those interested in buying into the Waikiki condo market, interest rates are still low and prices are on the rise. Now would be a good time. Be selective. It’s a very local market. There are still great buys out there if you know where to look or have expert guidance.
Waikiki is still a steal compared to some of the other resort areas here in Hawaii. Low prices, low HOA’s, and a plethora of activities just outside your door make it a best buy in anyone’s book. If you’re looking for a Great Buy in this hot market then check out my Waikiki Condo Blog.