$800,000 HOMES FORECASTED FOR OAHU

It was hard to believe local economist, Paul Brewbaker, who predicted in 2003 that median price of single-family homes on Oahu could soar almost 60% from $380,000 to a high of $600,000 by 2005.  The actual median price in 2003 was $389,250 and in 2005, increased to $627,500, so he was right on the mark. 

The University of Hawaii Economic Research Organization predicts the median Oahu home price will reach almost $800,000 in 3 years.  They see the present market as somewhat similar to the market around 2000.  The forecast is based on a recovering economy led by record tourism, historic low interest rates, declining inventory and a shortage of new home construction. The home price forecast for 2015 represents a 37% jump from last year’s median price of $575,000 and a 22% gain from the prior peak in 2007.

Mike Sklarz, President of Collateral Analytics doesn’t expect quite as much of a run up in prices.  He predicts the median home price by the end of 2015 will reach $734,000, not as strong and the UH prediction, but in the same direction.

Brewbaker considers both projections low and expects median prices in the $700,000 by next year.  He doesn’t see anything on the horizon that will keep Oahu home prices from a major rise.  Brewbaker said, “People can believe what they want, but they will probably look back on things in 2015 and say that they should have bought real estate a year ago (meaning 2011).  Three years from now they’ll wish they had”.

About the Author

Sandy Hanley ,

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Born and raised on Oahu, Sandy has a genuine appreciation for the ethic diversity that makes Hawaii so unique and special. Growing up in the islands in a multi-cultural environment is a life experience that enhances her daily real estate business and relationships. Sandy has a diverse and extensive background in real estate sales and management, project sales, vacation rentals and property management. She combines her love of the real estate business and 32 years of experience with a compassionate and knowledgeable approach to all real estate dealings. Her professional designations include REALTORS®, Certified Real Estate Brokerage Manager and Certified Residential Specialist. Although management is now her main focus, she remains active in the real estate community and continues to assist clients in sales transactions. Sandy resides in East Oahu with her husband Tom and their Miniature Pinscher Chihuahua, Dodger. Her son Chris is an attorney and resides in Kailua.

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