Real estate prices have dropped below $500,000 for the first time in more than two years and are down 15 percent since last fall, according to a survey released Monday by KAUA Real Estate.
The market is on the cusp of another record low of $450,000 in 2019, according the survey.
A decade ago, KAUX was forecasting a market this low in 2021, based on projections from both private and public market participants.
KAUY reported that the market was in for another record-low for 2019.
“It’s the worst we’ve ever seen for a single year, we have not seen a single market in terms of the prices falling below $400,000,” said Jeff Zettl, chief economist at Zettlican Group.
“We’re going to be in for some very, very painful sales and very, many years of a slow, steady decline.
So it’s just really tough to keep it going.”
Zettl said he believes that real estate prices are likely to keep falling this year.
“I think it’s pretty clear to me that prices are going to continue to fall for some time,” he said.
The survey found that just over 30 percent of all respondents think the median price for a home is under $400k.
Only 25 percent said they think the price of a home for sale is above $400K.
Only 10 percent of respondents think that a home in their region is worth more than $400 million, according and the lowest share of respondents ever.
The median price of the homes sold in the city of Honolulu was $480,000.
The median price in the San Francisco Bay Area was $470,000, and the median home price in Seattle was $479,000 according to KAUAA.
A home in the Bay Area costs $2.9 million, but the median selling price in San Francisco was $3.1 million, while the median sale price in Honolulu was just $1.9.
Kauai’s median home sale price was $4.2 million.