"Low inventory in real estate is a good indicator that the market is stabilizing," says Bernie Tong, Realtor and partner at Prudential Locations.
"Our inventory levels are so low, we're seen multiple offers on existing listings, sometimes for a higher than asking price," says Tong
"The tax credit means more buyers are out there right now, and low inventory means less competition for sellers for all these buyers."
Historically, inventory drops can be an indicator that prices are ready to rise.
While it's anyone's guess as to whether that will happen or not this time, this unique market does has an upside for some buyers.
"This is a great market for move-up buyers," says Tong
Downsizing is also a trend that Tong
is seeing more often as a way to reduce expenses or to move into something smaller and reduce maintenance and lowering utility costs.
recently helped a couple sell their 40-year old 3,400-square-foot home to buy a brand new 1,600-square-foot home in Ka Makana, in Ewa.
They now have half the square footage and very little maintenance, since the house is newly built.
"The low inventory means it's fairly easy to sell a home right now," says Tong
"I was recently trying to schedule a showing of a short sale in Ewa Beach and the listing agent told me she'd already received six offers in one week on the property and has stopped showing it."
attributes the drop in inventory to several factors including the tax credit, an increase in consumer confidence, and the time of year.
"Sellers historically will pull off listings around the holidays," she
says it's simple: To get the tax credit, a buyer needs to be in escrow by April.
"I've been advising my clients with entry level properties to list now because there are more buyers out," she