Mililani Mauka Single Family Home 2nd. Quarter ‘09 Report

It is a pleasure to see how well the inventory has gone down and the demand has picked up to arrive at this large increase in ACS %. Remember the ACS % is a % of Just Accepted Offers as compared to total inventory For Sale.

Avg. Sold Price is about Flat Line for the past 3 months.

Sales have actually slowed down a little from the end of March ’09 which in my opinion is unusual.

So demand is way up and the number of days to sell a property have dropped very significantly.

The Average For Sale Price of New Listings coming onto the market typically do go up this time of year as higher priced homes have the best opportunity to sell now during the peak selling season.

Here we are going to compare the pie charts for inventory For Sale vs. what is going into Escrow with Just Accepted Offers vs. what has Sold, for both 1^st. and 2^nd. Quarters ’09.

Please be careful to note the differences mainly in the Pie Charts of Homes Sold from the 1^st Quarter to the 2^nd Quarter.

This will tell us how many homes are selling at even more importantly what price points the buyers are choosing to purchase in.

As we can see, the sales have slowed down and the most popular price range for buyers right now is $500,000 to $599,000. This is a big difference during the last 3 months and does not bode well for listings for sale in the $800,000+ price range that are coming onto the market in abundance.

As I have noted in all my Real Estate Reports, buyers are choosing to purchase in the lower price ranges and this is what is contributing to the lowering of the Average Sold Price. Buyers are simply less apt to be ‘hurt’ by a falling market in the lower price ranges.

Those sellers with homes in the higher prices who have chosen not to market their properties until now ‘usually’ would have been o.k. as this ‘typically’ was the best time for them to sell and most likely get close to the price they want. But this year is different and these sellers were not paying attention to what I have been saying about the sales in the lower price ranges and they are going to have a tough time selling.

I wish everyone much Aloha,

Mike Gallagher, Broker in Charge, RE/MAX Honolulu
Ethics Complaints Review Committee Member

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