The list is out! The Top 100 Realtors in the State of Hawaii has been published by Hawaii Business Magazine.  

The numbers are based on the dollar volume of sales in 2011. I am thankful to be named on the list for the second straight year.

This list is the only objective measure of Realtors in Hawaii.  Whatever else an agent may accomplish, being on this list says that he or she has worked very hard and had some great success closing a lot of business.  In real estate, experience counts as much as anything else.  

Thanks to all my clients for their business, and most of all thank you God for your blessings! 

Listed for sale last week for $750,000, this Aina Haina house received 7 offers over asking price! It should close in June way has now sold at $777,500, WAY over asking price.  

It's a SELLER'S MARKET.  

A great classic 1950's one story house on flat lot, with a nice big yard.  Beautiful original hard wood floors in the living room and bedrooms. 

This large family room opens to spacious
yard. Great family home in one of Hawaii's most desired school districts. See
Large prof pictures here.

Check out the beautiful original hard wood floors. 

How is the market?  5 people have asked me this question since this morning.  Of course it's common for people to ask me this, but right now I sense that many people don't see a clear direction for the market right now. 

We can look back and see that since last year prices around Oahu have risen 5% on average for all home sales on Oahu.   But where is it going? Everyone wants to know .

(I predicted the bottom of the over 2 years ago, and also predicted the top of the market in 2005.)

First some median price data from the last 12 months.

• Hawaii kai prices are down 9.9% to $819,500
• Kailua prices are up 9.7% to $850,000
• Kaneohe prices are down 1% to $577,500
• Median prices in Mililani are up 19% to $602,500
• Diamond Hear prices are down $40k to $975,000
• Ewa beach prices are up 7.4% to $475,500
• Metro Honolulu prices are down 2.8% to $699,500
• Pearl City prices are up 3.4% to $592,250
• Waipahu prices are down 0.4% to $498,000

The problem is, there are very few homes for sale, and therefore very few homes selling.  The inventory of homes available has dropped yet again, remaining at the same 5 year low we have been at since January. Since there will probably never again be any major new construction projects in Metro Honolulu or East Oahu, the inventory of homes for sale will remain low for the next few years, until there is some other major catastrophe or economic crisis.  

So I predict prices will slowly rise for the next few years, and level out when interest rates rise in 2013.  As rates rise, people will be less willing to sell their home and move elsewhere, due to the payment increase.  There will be fewer buyers but also fewer sellers. I've had dozens of my clients tell me they "can never move again" after their most recent refinance.  I'm in the same boat.  

Via PBN:
"The number of foreclosure filings in Hawaii dropped in February, with half as many properties in some phase of the foreclosure process as a year ago, according to new data from RealtyTrac    RealtyTrac Latest from The Business Journals Follow this company .

There were a total of 473 foreclosure filings — including notices of default, public auctions and bank repossessions — in Hawaii in February, or one for every 1,098 housing units.

That was 27 percent fewer than January and 50 percent fewer than February 2011, Irvine, Calif.-based RealtyTrac said."

 I've been saying for that last 3 years that the market bottomed in early 2009, and that prices would begin to rise soon. 

To illustrate that this did occur and that the market turn is now known as fact, I've created this infographic below with numerous statistics that verify the Hawaii Real Estate market has been on the upswing for over 2 years now.

People are often shocked when I tell them how strong Oahu real estate has been over the last 10 years.  Prices remain very steady and in some areas are up over the last few years, primarily due to the limited inventory of homes for sale. 

The U.S. Census showed that Hawaii's 2010 population calculations show
Oahu is growing by
200,000 between 2005 and 2030. 

If the population on Oahu grows at roughly 8-percent in the next 20 years, in 2030 the population would be around 1,1 million.  

Here is how we've grown in 1980: 

1980: 763,000

1990: 836,231

2000: 876,156

2010: 953,207.  

At this point, the island is not seeing enough new housing construction to keep up with this demand, which is why rents and home prices are so high.  In the next 10-20 years, the shortage of housing will continue to be the problem that will drive prices higher and higher.  

Grade   With Dependents      Without Dependents

E5           $1899.00           $1701.00

1289  and 1864.  That's the number of homes and condos available on Oahu, respectively.  Those are the lowest numbers since fall 2005.  The lowest number of homes available in 2006-2009 so far was 1600.  Perspective - it's only 5.4 months of inventory!

No wonder my buyers have had a hard time finding homes to buy, while my sellers have been selling quickly with multiple offers. No wonder my clients looking for a water front townhome in Hawaii Kai are having a hard time.  Usually there are a dozen to choose from, but not anymore. 

Is it the low rates? The tax credit? The economy bouncing?  Whatever it is, the inventory only proves again that Oahu is the best place to buy and hold real estate!

Sold this morning for $3.15million, this classic Hawaii Kai beach front home in Portlock is the new retirement home of my clients.  With 3 bedrooms, 2 baths, and a 1bedroom 1bath separate cottage,  this property has the most important thing in real estate: location.  It sits on the ocean in quiet Portlock, with an amazing view of Diamond head, Moanalua Bay, and the Pacific Ocean.  It's also a short paddle out to some fun surf.

Check out the amazing view!  You can see the surf spot called Seconds right there.  That is Diamond Head in the distance.  Congrats to my clients on their beautiful new home! 

When it comes to putting a house on the market, determining
the right asking price is one of the most important decisions you can make.
Whether selling  Hawaii real estate, Maryland luxury
homes or just about anything else, setting the right price for your
home will help you attract more potential buyers and will also help you get
your home sold more quickly and at a reasonable price. With the help of a
qualified and experienced real estate agent, you should have no problem setting
the right price for your home.

When determining an appropriate asking price for a property,
real estate agents take several things into consideration. Some of these
include:

- Comparable listings and sales

- Sold comps

- Withdrawn and expired listings

- Pending sales

- Active listings

- Square foot cost comparisons

- Market dependent pricing

When examining comparable listings and sales, real estate
agents look at similar homes in the neighborhood that have been listed for sale
over the past six months. When finding comparable listings, real estate agents
typically restrict their search to those homes that are within 10 percent of
the same square footage as your home. They also consider physical barriers and
other neighborhood dividing lines, as even homes located across the street from
each other can have a significantly different value depending upon certain
factors.

When looking at those listings that have sold within your
neighborhood, real estate agents also consider the original list price compared
to the final sale price, the number of days the home was on the market before
it sold and things such as amenities, lot size and other factors that may
differentiate your home from other homes on the market.

In addition to considering those homes that have sold in the
neighborhood, real estate agents also consider those homes that were withdrawn
from the market before they were sold. By looking for patterns and other
commonalities among these homes, the agent can better determine a price that
will help get your home sold quickly and at a fair price.

While you may be tempted to set a price that is higher than
the real estate agent's recommendation, keep in mind that homes lose their
freshness after being on the market for more than a few weeks. By setting a
price that is too high, your home will go stale and will need to be removed
from the market for a period of time. Therefore, in order to get your home sold
more quickly while also getting a fair price, be sure to give serious
consideration to the price suggested by your real estate agent.

About The Author - Realtor Kevin Koitz specializes in Potomac
homes for sale and is a member of the Koitz Group in the Washington
DC area.