This past weekend we wrapped up 4th of July celebrating the birth of our great nation. Today, I'll be discussing PCS Season, BAH Rates in Hawaii, VA loan activity on Oahu through COVID and VA Loan deals over $1 million on Oahu. However, before we start, I'd like to share a little treat with you.  For those of you that weren't here on Oahu this past week, here's my sister in law singing the national anthem at the Macfralane Canoe Regatta in Waikiki on July 4th.

Wasn't that pretty cool? I know a lot of the people I talked to at the beach after said it gave them "chicken skin". She did such a great job performing in front of a huge audience there at the Outrigger canoe regatta at the beach there in Waikiki. Another special thing about this event is there's an armed services division and every year they have a race off between all the divisions of the armed services here on Oahu. Going ini and out through the surf in Waikiki, it was fun to watch. Now we're going to jump into VA loans and some of the stats we've been seeing over the past 3.5 years since COVID started.

VA Loan Home and Condo Sales on Oahu Since 2020

As you can see from the chart here, VA buyers were a lot more keen on buying homes vs. condos early on in 2020. With the lockdowns here on Oahu, condo living was less desirable with all the restrictions and owners couldn't use the amenities they were paying for. In addition to that, home prices were much more affordable in 2020 than they are today. Rates were also much lower.

As the real estate market here on Oahu started to take off, we saw more buyers were gravitating towards condos due to affordability. Although transactions were fairly tight between home and condo sales throughout 2021, rates definitely started playing a factor and by the time we hit 2022, there were significantly more VA buyers acquiring condos than there were homes. Another factor we'll get into on the next chart is the cap on VA loan limits was removed on January 1st, 2020.

VA Sales on Oahu Over $1 Million

To compound the crazy real estate market we witnessed a few years back, was in 2019, President Trump removed the VA cap for home buyers. So, as of January 1st of 2020 there was no limit, as long as buyers could qualify to service the debt. I've since done many VA deals where the buyer got a loan over $1 million with 100% financing. As you'll see in this chart, VA home sales over $1 million far outpace VA condo sales over $1 million. Every quarter since 2020, we've only seen single digit condo sales, with the peak being in the 3rd quarter of 2022 with 9 transactions. In the 2nd quarter of this year, there were 5 VA condo sales over $1 million.

You'll notice those peaks in each year were around the 2nd to 3rd quarter during PCS season. If you're in the process of PCSing away from Oahu, now might be a good time to take advantage of that buyer traffic. For those of you looking to buy now, there's a lot more to chose from and a lot less competition than there was several years ago such as bidding wars, etc. For those considering buying on Oahu, Hawaii has always had the highest BAH in the nation. To see the latest check out the link below to the DOD website.

Need Help PCSing to or from Oahu?

I hope you found the information useful here. If you're looking to PCS to or from Oahu, feel free to contact me to see how I can help. Mahalo!

Home and condo prices on Oahu were down 4.5% from a year ago. This is David Buck with Harcourts Island Real Estate here to give you the monthly statistics for June of 2023. 

Single Family Home Stats

First off, we'll dive into the single family home stats. There we saw the median price for a home drop 4.5%. In June of 2022, that price was $1,100,000. Now, we're at $1,050,000. Sales volume is also continuing that trend of slowing down, which was down 30.5% regarding the number of transactions. We had 357 home sales last year and now we're just at 248.

Median Days on Market are also increasing, which was up 70%.That is going from 10 days a year ago to 17 days today. Stay tuned and we'll be right back with the condo stats.

Condo Stats

As I mentioned earlier, the median condo price was also down 4.5% from June of last year. Last year we saw a median price of $534,000. Now, we're at $510,000. Sales volume was also down for condominiums, going from 626 sales a year ago to 470 sales this year. That's a 24.9% drop.

Last, but not least, median Days on Market is increasing as well going from 11 to 18 days (63% increase). I hope you all had a great 4th of July. We'll be reporting on the local neighborhood reports (later this month). In the meantime, I hope you're enjoying your summer! It's a great time to get out there, whether you're buying or selling real estate.

The Windward Coast of Oahu showed the most strength for both homes and condo sales this past month. This is David Buck with Harcourts Island Real Estate here to report on the local market update for May of 2023 here on Oahu.

Local Neighborhood Home Stats

First off, we're going to jump into single family home sales and like i said earlier, the Windward Coast was hot. On the Windward Coast, home sales were up 50% year over year, going from 6 sales a year ago to 9 sales this past month. Waialae-Kahala was the runner up with a 10% increase. Meanwhile, Makakilo homes saw an 8% bump up in the number of transactions. Meanwhile, every other neighborhood on Oahu was either flat or down regarding the number of sales year over year.

Regarding the appreciation year over year for single family homes, Hawaii Kai took the cake. Year over year, that median sales price was up 8% going from $1,485,000 a year ago.. Now the median price for a home in Hawaii Kai is $1,600,000. Meanwhile, Kailua-Waimanalo saw a 2% increase in median sales price and there were 2 other neighborhoods on Oahu that were up just 1%. So, not a lot of homes are showing a year over year increase in sales price. However, there are some silver linings.

Local Neighborhood Condo Stats

As I mentioned earlier, the Windward Coast of Oahu saw the largest increase for both homes and condos. Now that we're jumping into the condo stats, the Windward Coast saw a 200% increase in sales year over year. That was going from just 2 transactions a year ago to 6 transactions this past month. Following the Windward Coast, Wahiawa saw 100% increase in sales year over year going from 3 to 6 transactions. Kailua-Waimanalo saw an increase of 38%. Those are 3 neighborhoods that did see an increase in sales. Meanwhile, every other neighborhood on Oahu was down regarding the numbers of transactions for condo sales on Oahu.

Our final category is condo appreciation here on Oahu and Waialae-Kahala saw the largest increase year over year. That was up 61% going from $375,000 a year ago to $605,000. Second place year over year was Diamond Head-Kapahulu, which was up 54% and Makaha-Nanakuli was up 21%.

As we talk about every month, every market is local. So to find out what's going on in your particular neighborhood, feel free to reach out and give us a shout. In the meantime, enjoy the rest of your June as we've got the 4th of July coming up right around the corner and God Bless America! Aloha.

Did you know that the median price for single family homes and condos on Oahu was down "just slightly" in the low single digit percentile from a year ago? This is David Buck from Harcourts Island Real Estate here to give you the monthly market report for May of 2023.

Home Stats

First, we're going to start off with the home stats and there we saw a 23.8% drop in the number of transactions. That was going from 344 sales a year ago to 262 sales this year. Now, we're going to jump into that single digit drop, which was 3.9% for the median sales price. The median sales price is still above $1.1 million at $1,109,000. However, a year ago we were at $1,153,500. That, once again is a 3.9A% drop.

We have seen an increase in the median days on market. which is up 110%. That was going from just 10 days a year ago to 21 days, which is still considered a seller's market. It's something we want to keep an eye on that things are slowing down with 23.8% less sales. But, things are selling. It's just taking them a bit longer to sell.

Condo Stats

Condo sales on Oahu took a slightly bigger hit. They were down 36.3% from a year ago. Last year we had 688 condo sales in May and now we're down to 438. The pricing was down 2.2% for median sales price. A year ago, the median sales price for a condo on Oahu was $516,500. Now, we're just at $505,000. In the big scheme of things, that's not real significant considering what's been happening with interest rates and what you hear about in the news. So, just a 2.2% drop in condo price.

It is taking condos longer to sell (similar to single family homes). It was up 100% year over year for days on market. But, that was only going from 10 days to 20 days. Keep in mind, those stats are what's actually selling according to the Honolulu Board of Realtors stats. As we know, there are both homes and condos that get listed for sale that get pulled off the market, so that skews the stats a little bit.

Summer Moving Season

Here we are in the first week of June heading into summer. It's exciting because we have a big moving season for both local people and both inbound and outbound domestic migration. We're also starting to see a little bit of international traffic come back to Oahu. More importantly, this is PCS season for our military. That's a big demographic we'll be seeing this summer buying and selling houses here on Oahu. 

Every market is different and if there's anything we can help you with here on Oahu, feel free to reach out to us.

I can't believe it's been 10 years since I did my 1st episode on HGTV. We're back in the same office space here in Kahala where we filmed that episode and I thought it would be fun to take a step back and see what's changed over the past 10 years.

Kahala Office

In addition to my hair color and my aloha shirts fading (yes, I do own the same aloha shirts), I thought it would be cool to revisit some of the neighborhoods in East Honolulu and see how the prices have appreciated over the past 10 years. So, sit back and enjoy. We're going to revisit the areas we shot ini that episode and bear with me. I'm not going to have all the cool production crew around me and microphones. But, I think it will be fun to see what's happened in our marketplace over the past 10 years.

Kalani Iki

Here we are at the entrance to Kalani Iki Valley and the home we saw back then was a 4 bedroom, 2.5 bath listed at $1.1 million. It was over 2,700 square feet under roof. Today, there's a few listings on the market that range from $1,275,000 for only a 2 bedroom, 2 bath. That one is only 1,464 square feet. There's also another one that 3 bedrooms, 2.5 baths at 1,678 square feet and that's listed for $1,499,000. So, prices have definitely gone up since 2013.

There are now 2 sales in the last 6 months and those traded in the $1.3 to $1.4 range. So, at 2,700 square feet what we were looking at back then aa an asking price of $1.1, if I had to guesstimate something like that today would be $1.5 most likely. The maintenance fees have also gone up. That was a concern in the episode. They were $900 back then and they're well north of $1,000 now. However, some of that money has gotten reinvested over the past year or two. They've redone the swimming pool area and the tennis court. So, Kalani Iki is still a trophy area, a great location close to town. That's a wrap on Kalani Iki and it's been wild what's been happening over the past 10 years.

Gateway Peninsula

Here we are at Gateway Peninsula directly behind me and we've got Duck Island directly over my shoulder, hence the ducks you hear on the background. Back in 2013, the unit we were looking at was going for $959,000. They are all pretty much 3 bedrooms, 2.5 baths. That one was completely done and remodeled. Right now, today, there is one in escrow for $1,250,000 at Gateway Peninsula and the last 2 sales that took place were $1,255,000 and $1,370,000.

Prices have shot up at Gateway Peninsula over the past 10 years and you've got great company with the ducks around here. It's a beautiful day in Hawaii Kai and that's what's happening in Gateway Peninsula over the course of the last 10 years. Mahalo.

Aina Haina

Here we are in Aina Haina and the home that we shot in 2013 is directly behind me, but this will give you a good perspective of the valley because what we looked at was in the flats. It's a vast valley with over 1,000 homes. The one we saw 10 years ago was a 4 bedroom, 2 baths and it was listed for $1,299,000. Current inventory right now in Aina Haina is going between $1,098,000 to $1,499,000. But, they're much smaller lots on the sides of the valley more like 7,500 square feet vs. a quarter acre down in the valley like the one we saw. 

A home traded in the last 6 months (very similar to the one we saw) that went for $2.1 million. So, that's a big bump up in price. There's also one right down the way here that's newer construction a similar size that's in escrow for $3.5 million. So, Aina Haina is seeing a lot of appreciation over the past 10 years and that's a wrap.

Summary

We're back at Kawakui Beach Park, which is where Keoni and Eliza made their decision on the house. We're not going to get in that right now. To see their decision, you're going to have to watch the episode. To just recap what's happened in the last 10 years, in Kalani Iki you saw a house back then going for $1.1 million. Something similar today would arguably be worth $1.5  million or more. The maintenance fees have gone up. Gateway Peninsula was at $959,000 back then and arguably something like that would be around $1.3 million today. Last, but not least, Aina Haina, right across the way here was just under $1.3 million. A home of that stature today would be definitely well into the $2 million range. So, if I were to say which one appreciated most, for sure Aina Haina. On a percentage basis, Aina Haina might be that frontrunner as well.

Who knows what the next 10 years will hold?

If you're trying to figure out what's happening here on Oahu or want to get in on this market, every market is different, so feel free to reach out and I'd be glad to help you. Mahalo.

Duke Kahanamoku Beach in Waikiki

Dr. Beach recently came up with his annual list of the top beaches in the United States and Duke Kahanamoku Beach in Waikiki took the #2 spot behind St. George Island State Park in Florida. Not a bad accolade considering all the beautiful beaches in Hawaii (and the mainland). 

Real Estate Near Duke Kahanamoku Beach

Most of the prime real estate near Duke Kahanamoku beach is taken up by hotels such as the Hilton Hawaiian Village and the Hale Koa Hotel. However, if you're looking to own a piece of paradise near Duke Kahanamoku Beach, you might want to consider The Ilikai Apartment Building to the west or perhaps Trump Tower Waikiki or the Waikiki Shore to the east. They're all great condos in their own right. There's also a ton of other buildings if you're willing to walk a bit further.

Other Noteworthy Hawaii Beaches

In addition to Duke Kahanamoku Beach coming in at #2, Wailea Beach on Maui came in at #7 and Poipu Beach on Kauai came in at #9. If you're looking for something to own along one of Hawaii's beaches, feel free to contact us for more information.

Can you believe that Waialae-Kahala home prices were up 116% last month? This is David Buck with Harcourts Island Real Estate here to give you the local market update for April of 2023. We're going to jump into Waialae-Kahala in a second, but first we're going to start of with the single family home sales.

Local Update for Single Family Homes

Ala Moana-Kakaako had the largest increase in the number of sales. It was 100% increase, which was only going from 1 to 2 (sales), because most of the product in Ala Moana to Kakaako are actually condos and not houses. With that said, it was 100% increase since April of '22. There were 4 neighborhoods on Oahu that saw an uptick in the transaction volume for single family homes and there were 2 that were basically flat with no sale increase or decrease. The remaining 15 of the 21 neighborhoods we are tracking were actually down regarding the numbers of sales.

Now we're going to discuss Waialae to Kahala. As I mentioned earlier, Waialae to Kahala saw an increase in the median sales price of 116% in April of '23. The median sales price was $2,375,000 last year and this past month it jumped up to $5,125,000! The reason for such a large jump was that there was only 1 transaction that took place. That sale was on Royal Circle, which is closer to Black Point, on the border of Kahala and Black Point. Whereas, a year ago there were actually 9 sales in Waialae-Kahala. This past month, there was only 1. That was an 89% dip in the number of transactions. The number was a bit skewed (with only 1 sale), but nonetheless that's a huge increase in median sales price.

We also saw some big trades in Kahala and Diamond Head a few months back in that $14-15 million range. In the luxury market, there's still buyers out there for single family homes.

Local Update for Condos

The Windward Coast saw a 200% increase going from 1 sale to 3 sales, regarding condos. Mililani and Hawaii Kai were also up regarding the number of sales year over year. Those were kind of the 3 spotlights, but overall, the transaction volume is down, which is a trend we've been seeing now for over a year. 

More than half of the neighborhoods on Oahu saw an increase in median sales price for a condo on Oahu. The North Shore saw the largest increase, which was up 57%. That was going from $505,000 to $795,000. We're seeing a lot of change in the market. Some neighborhoods are up, some down. To find out what's going on in your particular neighborhood, feel free to reach out and give us a shout. Mahalo!

Can you believe that home sales on Oahu dropped 43% from a year ago? It's to believe... This is David Buck with Harcourts Island Real Estate here to give you the monthly statistics for April of 2023.

Home Statistics

We started this off saying that home sales on Oahu have dropped 43%. If you look back in April of last year, we saw 365 single family home sales on Oahu. Now, we just had 208 this past month. In addition to that, we saw a dip in the median sales price, which was down 9.5%. In April of last year, we had a median sales price of $1,105,000 and now we're at $999,995 (just under $1 million bucks) for that median sales price of a house on Oahu.

The median Days on Market have also shot up from just 10 days (which was a crazy market a year ago) to 24 days, which is still considering a "seller's market". With that said, these last several years have been very challenging for buyers and now there's a lot more opportunities ini the marketplace for buyers. The active inventory is up 35.4%. A year ago, there were only 395 homes for sale on Oahu. Now, there's 535, so there's a lot more to choose from. If you're a buyer in the marketplace, we're in May, heading into summer and there's some opportunities out there. As the market is softening, there's not as many bidding wars. If you're a buyer, you're in a much better environment than a year ago because rates were already starting to get up there in April of last year.

Condo Statistics

Condo sales also took a dip on Oahu, which weren't down as much as the homes. But, they were down 37.5% from April of last year. Last year there were 672 condo sales on Oahu. Now, there's just 420. So, we're continuing to see of softening across the board. However, regarding the pricing on condos, if you recall last month we talked about the median condo price on Oahu hit a record high. Now, this month we're reporting we're down just 2% from a year ago. So, that's not as much a correction as there was in the single family home market, which was down almost 10%. The median sales price for aa condo on Oahu is now $500,000. Whereas, a year ago it was at $510,000.

We're also seeing an increase in median Days on Market, which was up 66.7%. That was going from 12 days to 20 days. Things are moving quite briskly if they're priced correctly. Another positive side we talked about for buyers as we talked about on the homes is that active inventory is up. It didn't increase as much on the condo side as single family homes, but we saw a 24.8% increase in active condo inventory. In April of last year, there were 917 condos for sale. Now, we have 1,144. These are resale by the way. They are not new construction such as new condo towers coming up in Honolulu. We can dive into that, but I'll put a link here if you want to dive into new condo opportunities are. When we go over these monthly stats, we're strictly talking about resales.

That's a recap for April. Stay tuned as in a week or two here we'll report on the local market update. Otherwise, I hope you're having a great May and wishing all those wonderful Mothers out there a wonderful Mother's Day this weekend. Mahalo!

Happy Mother's Day

Can you believe there was only 1 neighborhood on Oahu that saw an increase in home sales last month? And, only 2 neighborhoods on Oahu that saw an increase in condo sales? This is David Buck with Harcourts Island Real Estate here to give you the local market update for March of 2023.

Local Update for Homes on Oahu

Makiki-Moiliili was the only area on Oahu that saw an increase in sales year over year and that was up 17%, going from 12 sales in March of 2022 to 14 sales this past month. Meanwhile, sales were down in 17 of the 21 major neighborhoods that the Honolulu Board of Realtors tracks. In addition to that, 3 were unchanged. Like I said, there was only 1 that was up year over year. Stand by and we'll get into the median sales price.

Meanwhile, there were 4 neighborhoods on Oahu that saw an increase in median sales price. Aina Haina-Kuliouou saw a 79% increase in the median home price, which was up from $1,830,000 a year ago to $3,270,000. The reason there is there were 4 sales in March and 3 of those 4 sales took place on Hawaii Loa Ridge. Meanwhile, Aina Haina had the 4th sale and Niu Valley and Kuliouou didn't see any home sales this past month. So, that's why you saw a spike in the median sales price because Hawaii Loa Ridge (which is a gated, luxury community) took the cake with 3 out of 4 sales this past month. I anticipate more will happen in the surrounding neighborhoods as we wrap up spring and head into summer in a month or two. We'll probably see a little more transition take place in Aina Haina, Niu Valley and Kuliouou. Stand by and we'll report on the condo stats.

Local Update for Condos on Oahu

Well, condo sales were down in 16 of the 21 neighborhoods that the Honolulu Board of Realtors tracks. Similar to the single family homes, there were 3 of those neighborhoods that saw zero change year over year. There were only 2 neighborhoods that saw an uptick in condo sales. Kalihi-Palama saw the largest increase, which was up 42% and that was going from 12 to 17 sales year over year. Hawaii Kai was the only other neighborhood that saw an increase and that was 26% year over year. Stand by as we have 1 last category to report on, which would be the median sales price increase for condos on Oahu.

The last category we're going to cover is the median sales price for condos on Oahu and Wahiawa saw the largest increase in median sales price for a condo on Oahu and that was going from $260,000 a year ago to $372,500. If you think that sounds low, you're correct in that the median condo price on Oahu actually hit a record in March. So, Wahiawa would be on that lower end of the spectrum. The median condo price on Oahu is now north of $500,000 and we reported on that earlier in the month. Regardless, Wahiawa did see a 43% increase in condo price.

Contact a Local Expert

As we talk about every month in these reports, every market is different. They're all local and different things are happening ini different places. To find out what's happening in your market, feel free to give us a call. 

So it's been just over 10 years since I wrote a blog about the difference between Honolulu real estate and Beaver Creek. Back then, I was just learning how to ski. I just started learning how to ski when my kids started skiing and I'm a little bit better now (10 years later).

Our First Time Skiing in Beaver Creek, CO

What I want to do now is talk about the difference between Aspen real estate and Honolulu real estate. We covered the trip to Beaver Creek back then, but since that trip to Beaver Creek we've probably done dozens of trips here to Aspen, CO. We just love this place. The real estate prices here are just wild!

Aspen Condos Seen from Gondola

Aspen Condos

For instance, in the town behind me, you can have wood framed construction condos built in the 1970's, with no amenities and no covered parking and they're trading for several thousand dollars a square foot. You can't find anything under $2,000-3,000/sq. ft. in this town.

Honolulu Condos

Park Lane in Ala Moana, Built in 2017 and Waiea in Kakaako, Built in 2016

For that same equivalent back in Honolulu, you're able to get relatively new construction in a building like Park Lane or Waiea, where you have all these high end amenities and ocean views. So, that's kind of the contrast you get between these two towns.

What Makes Aspen Unique

As you can see behind me, there's just a finite supply of real estate. It's similar to Honolulu in that more people want to be here than are leaving. What's really wild is during COVID, there was an article that came out in the Wall St. Journal and Realtor.com that talked about how real estate in this town was exploding. Between March to September of 2020, there were 46 home sales north of $10 million here in Aspen. Meanwhile, during that same period on Oahu there were only 2 home sales north of $10 million. That really shows the difference.

On top of that, this (Aspen) is a town of only 6,000 full time residents. Whereas in Honolulu, we have roughly a million. So, there's a big contrast between the two markets. Both are beautiful in their own ways.

Can Oahu Condos Compete?

Back to these condos here in Aspen. They're trading for crazy multiples of several thousand $ a square foot (or more). The highest we saw on Oahu during COVID was actually north of $5,000/sq. ft., so we one (outlier) transaction that could compete with Aspen.

Waikiki Shore Penthouse #1200 Sold for $5,710,000 on August 5, 2021

That was a penthouse condo at the Waikiki Shore, which is the only oceanfront condo in Waikiki. It was 1,158 square feet and traded over $5,000,000. The reason for that is that building has been gobbled up by a lot of Japanese investors because they get an accelerated depreciation over 7 years. On top of that, it's one of the few legal vacation rental buildings in Waikiki with that square footage.

Trump Tower Waikiki and Ritz Carlton Waikiki are Legal Vacation Rental Condos

Others to keep in mind, that don't trade that high and aren't in as good a location (as Waikiki Shore) is Trump Tower Waikiki as well as Ritz Carlton. Both are beautiful buildings and beautiful brands. However, there's not much money left on the table in those 2 towers when you factor in the management fees. You can control your costs a bit more at Waikiki Shore and those owners can net a bit more, but at $5,000/square foot, it's going to take awhile to make your money back.

Red Mountain in a Class Alone

Red Mountain Seen from Aspen Gondola

What I'd like to talk about straight back behind us is Red Mountain. In Red Mountain, you have some crazy real estate prices, of which trade higher than oceanfront homes in Kahala. In the last couple of years, we've had a few trades (on Oahu) north of $20 million. There was one in Lanikai and Kahala has been notorious over the years (for higher prices). This year, we had one at $15 million. But on Red Mountain, that's what some people are paying just for the dirt on a lot. There was a trade that happened up there a summer or two ago. It was $70 million for a single family home. That's almost double the highest sales price for a house ever sold on Oahu.

Ajax Seen from Hike Near Red Mountain

So, just to get perspective, that's Red Mountain there. But, if you were to flip that (or huli in Hawaiian) the angle around and look back up at Ajax or Aspen Mountain, which we're on in this gondola, that's the view you're waking up to. It's southern facing. It's spring skiing right now. You can see the snow here on the mountain, but everything on Red Mountain is getting the sun throughout the day. So, it stays a bit warmer.

Honolulu Still a Bargain

To recap, similar to that blog I wrote 10 years ago, Honolulu real estate prices are a bargain. Especially when you compare them to here in Aspen. If you're looking to buy something in Honolulu, give me a call or if you're in the market here in Aspen and want to explore this exclusive community, I don't have my license here yet, but I'm in communication with a lot of great agents here on the ground. So, feel free to give us a call and reach out. I hope to see you on the ocean or on the snow.

Ocean or Snow, Give David a Call