Are Pending Home Sales declining in Hawaii?

As we see a Pending Homes Sales decline nationally as reported by the National Association of Realtors, are they declining in Hawaii?  The Hawaii market has not suffered as greatly as many markets have during this economic downturn, but we are still keeping a close eye on the monthly statistics coming out to be assured that we continue to be on a good trend. The Pending Home Sales index tracks the number of properties going under contract and is considered a leading indicator to watching existing home sales. So, it is likely a good predictor of the existing home sales numbers as well as the median sales price.

We are awaiting the end of the month to properly analyze the numbers to know the true story, but it is likely that we will see a decline in pending home sales, but not because the market is slowing.  The numbers are dependent not just on demand for housing, but also supply.  The Hawaii real estate market has seen a substantial decline in available inventory from the this time last year.  As we reported at the beginning of May, we have seen a decline in available properties to sell of nearly 20%.  If you have been following us on twitter (www.twitter.com/bonnebaker), you have been seeing our tweets about how fast properties are selling and how many are selling before hitting the market, in all price ranges.  Be prepared if you are a buyer, the market is moving very fast because of the low inventory.

So, yes, we likely will see a decline in pending home sales, but it simply because there is not much coming on the market.  The important figures will be the days on market number and the median sales price figures, both of which likely will show nothing but strength in our market.

We at Bonnebaker LLC, keep a close eye on the market statistics to help give our clients tools to make the best decisions when buying and selling real estate. Let us help you get up to speed with the market and assist you in prepared to make a purchase or with selling a property.  Say, ‘Hi’ to Malia Meenderman, Realtor, and she can help you begin the process.