Waikiki is a populous neighborhood within the city of Honolulu on Oahu island in the state of Hawaii. It is located on the island's southern shores along Waikiki Beach, where some of the island's most coveted – and most pricey – real estate lies. The Waikiki real estate market is highly competitive due to the limited number of properties with beachfront views. Most of the real estate available in this area are condos rather than detached, single-family homes.
Waikiki real estate suffered, along with the rest of Hawaii, after the U.S. economy began to see a downturn in late 2008 and eventually fell into recession. As markets across the nation saw home values plummet and the number of distressed homeowners rise, so too did Waikiki. Prices that had so recently been at all-time highs began to tumble, leaving many owners owing more on their properties than they were now valued for, and the number of foreclosures in Waikiki saw a significant rise in the immediate periods after the crisis.
Though many Waikiki condos for sale still have yet to reach their pre-crash values again, the market has begun to show at least some slight signs of improvement at times, though most indicators have taken a pattern of alternating rising and falling, and the market still has a long way to go to match the numbers in its heyday. In July, Waikiki condos had an average selling price of $431,233, down significantly from June's figure of more than $568,000. The number of condos sold in July was down as well, by 18% from 61 to 50.
One positive indicator in July in the Waikiki market was the number of days properties spent up for sale before closing, which fell to 73 in July from 106 in June and 84 in May. The number of new listings in July fell a bit as well, down 21% to 112. Because sales volume was down this month, the total inventory rose. It stood at 593, up slightly from June's figures but encouragingly down 8% annually. The average listing prices for home hitting the market rose to more than $537,000 from about $460,000 in June and $382,900 in May. The average price for sold distressed properties in June was $237,333, showing that there are certainly some homes that can be snatched up for considerably low prices. June saw an inventory of 32 distressed properties in Waikiki, up 81% annually, an indication that the number of homeowners in trouble has risen significantly in the past year.