Posted on: Friday, December 27, 2002

The Honolulu Value/Price Model

• Mortgage rates drop to lowest level since 1965
• Hawai'i mortgage rates sink again to low point
• Hawai'i mortgage rates
• Neighborhood snapshots
• California median home price jumps to new high

This chart illustrates current median prices for single-family homes in Honolulu vs. predicted or "model" prices. Predicted values are based on an intrinsic value supportable with current local economic conditions — in other words, what our homes should be priced at. As the chart shows, the actual median price frequently fluctuates above or below the predicted fundamental price, which is a reflection of under- or over-valuation of the market. Currently, the model and actual median price are very close, which indicates that homes are generally fairly priced.