Many of Hawaii’s residential real estate leaders expect the market to be stronger this year, though limited inventory is a primary concern.
That concern was among many topics discussed in PBN’s newsroom on Thursday, where seven real estate executives met with PBN editors and reporters to talk about their industry.
“It’s still brutal for buyers”, said Myron Kiriu, president of Prudential Advantage Realty. “You’re having properties, priced right, with between six and 20 offers now and only one person gets the property.”
“There’s tons of demand but not enough inventory”, Kiriu added. “Most guys I talk to think there will be a price increase.”
Planned subdivisions – including Castle & Cooke Homes Hawaii Inc.’s 5,000-home Koa Ridge development and D.R. Horton (NYSE: DHI)-Schuler Homes Division’s planned 11,750-home Hoopili project – won’t necessarily satisfy the amount of inventory needed.
“We just see so many people disappointed with what they see in the inventory,” said Carole Manuwa, a Realtor with East Oahu Realty. “There’s a lot of old inventory and it just doesn’t satisfy everyone. Even with those new projects, you will still have people who prefer a neighborhood.”
John Harris, broker/owner of Re/Max Honolulu, estimated that new single-family-home development is at least three to five years down the road, and inventory of single-family homes on Oahu is at about 1,000 – the lowest the industry has seen in a while.
Looking into 2013, the real estate executives said they expect to see more buyers from foreign markets as interest from Asia continues to grow.
“It’s hard to measure the Chinese market; some of that is coming through Canada,” said Myra Brandt, owner and broker of Kahala Associates.
“Japan is still our primary buyer but Australia is the second.”
Read more about PBN’s residential real estate meeting in the Feb. 22 print edition of Pacific Business News.
Article courtesy of Pacific Business News, written by: Jenna Blakely, General Assignment Reporter. Posted on Feb. 7th, 2013.