Oahu’s Housing Market Remains Sluggish

Median sales prices rise slightly as sales volume dips for both single-family homes and condos

According to resale figures released by the Honolulu Board of REALTORS®, the spring season started with little momentum. In March, single-family home sales dipped by 2.5% year-over-year and condo sales fell 22.5%. The median sales price for single-family homes rose to $1,100,000, marking a 1.5% year-over-year increase. Conversely, the median price for condos dropped to $500,000, down 6.7% from last March’s record-setting price of $536,000.

Single-family home sales priced $899,999 and below experienced a modest uptick, with 70 sales, marking a 6.1% increase compared to 66 last March. Meanwhile, the largest decrease in sales volume occurred for single-family homes purchased in the $900,000 to $999,999 price range, down 28.1% or 9 sales from a year ago. Condo sales observed an uptick in the $200,000 to $399,999 range by 11.8% or 10 sales, but declined sharply in the $1,000,000 and above range, dropping to 25 from 52 last March, or 51.9%. Sales in the $400,000 to $799,999 range also fell by 28.5% year-over-year.

“Elevated mortgage rates have prompted another slowdown in market activity,” said the President of the Honolulu Board of REALTORS®. “However, there are still positive signs, with strong demand for single-family homes in affordable price ranges and increasing pending sales.”

Both single-family homes and condos typically entered contract within one month. Median days on market for single-family homes and condos were 31 and 29 days, respectively. However, single-family homes continued to draw buyers, with 280 pending sales, an 8.5% year-over-year increase. Condo contract signings remained steady compared to last March, with 439 pending sales, a moderate 1.1% decrease.

Pending sales in the $800,000 to $999,999 range continued to mark a sizable share for singlefamily homes, with 81 contract signings this March, growing 15.7% year-over-year. Additionally, condos priced between $300,000 to $599,999 contributed nearly 50% of the month’s pending sales. For single-family homes, 23% of sales closed above the original asking price compared to 24% last year. Meanwhile, condo sales above asking price decreased to 18% from 21% the same time last year.

“The journey to homeownership is unique for everyone based on their needs. Working with a REALTOR® ensures clients have the support and expertise needed to navigate shifting market dynamics,” the HBR President added.

New listings in the single-family home market remained nearly steady compared to a year ago, with 291 new listings, a slight 0.7% decline. Meanwhile, condos added 647 new listings, up 22.1%. Overall, new listing volume rose in both markets for the first quarter, with single-family homes up by 9.7% and condos up by 16.2%.

March concluded with a 7.4% increase in active inventory for single-family homes, driven by rises in the upper price range at $1,600,000 and above, up by 23.2%, and the $1,000,000 to $1,599,999 range, up by 9.2%. Conversely, inventory in the $999,999 and below range declined by 7.5%. In the condo market, active inventory surged by 29.6% year-over-year, with significant increases across most price points, offering buyers more options. The $300,000 to $499,999 range skyrocketed 84.9%, with 464 units available, compared to 251 a year ago.

First Quarter

Despite these challenges, first-quarter sales grew 6.1% for single-family homes but fell by 7.1% for condos.

Year-to-date (Q1) median prices reached $1,070,000 for single-family homes and $505,000 for condos, a 4.4% and 1.0% year-over-year increase, respectively.

Through the first quarter of 2024, single-family home sales in the $1,000,000 and above range increased to 340 from 292 in Q1 2023, rising 16.4%. However, single-family homes priced at $999,999 and below decreased by 5.2%, with 253 sales compared to 267 in the same period last year. For condos, sales in the $400,000 to $499,999 range slumped 19.6%, with 164 sales compared to 204 in Q1 2023. Sales volume for condos priced at $1,000,000 and above also dipped, with 71 sales compared to 102 during the same period last year, a 30.4% drop.

View the full report at https://issuu.com/advantagerealtyhi/docs/march_2024_oahu_real_estate_report

New Year Sees Oahu Home Sales Rise

Properties stay on market a bit longer, but continue to move into escrow in under 30 days

According to resale figures released today by the Honolulu Board of REALTORS®, single-family home sales rose 22.7%, while condo sales ticked up 6.2% compared to this time last year. Month-to-month, the new year started much like 2023 ended, with minimal upticks in sales of single-family homes at 1.1% and condos at 7.4%.

Median sales prices in January 2024 closely resembled year-end figures in late 2023. Single-family home prices reached $1,021,016, up 2.5% month-to-month but down 2.8% from the year-end median of $1,050,000. In January, the median condo price was $502,500, a 1.5% dip month-over-month and a 1.2% drop from the year-end median of $508,500. Year-over-year, single-family home prices grew by 5.3%, while condo prices saw a modest 1.5% increase.

Properties stayed on the market slightly longer than they did a year ago but still moved into escrow in less than a month. Both markets marked median days on market of 29 days, compared to 24 days in January 2023.

Both markets experienced an uptick in new listings. Single-family home listings grew 6.3% year-over-year, with 285 new properties for sale. Sellers added 581 new condo listings to the market, an 11.1% year-over-year increase. By January’s end, active inventory levels for single-family homes rose 10.2%, and condos increased 12.7% year-over-year. However, compared to January 2020, just before the pandemic, active inventory levels remained down 25%.

“New listings mean new opportunities for buyers at all price points,” said the President of the Honolulu Board of REALTORS®. “However, Oahu’s housing market still faces the persistent challenge of low inventory, which keeps our housing prices elevated despite cautious market activity.”

Sales volume for single-family homes increased across all price points, with the most substantial surge observed in homes priced at $1,300,000 or higher where sales more than doubled. In January 2024, sales in this range skyrocketed by 113.3%, with more than 70% of sales in this category coming from the Kailua, Diamond Head, Metro, and Hawai‘i Kai regions. Condos in the more affordable price range of $300,000 to $499,999 recorded the highest sales volume, while sales in the outer price bands of $199,999 and below and $900,000 and above significantly declined, at 52.4% and 33.3%, respectively.

“As evidenced by the market activity, everyone’s journey to homeownership is different. There are so many personal factors to consider when buying a home, and the best thing you can do is work with a REALTOR® who can bring the market knowledge, negotiation skills and experience to help you achieve your real estate goals,” the HBR President added.

Contract signings for single-family homes dropped most in the $800,000 to $999,999 range, with only 56 pending sales compared to 84 last year, down 33.3%. In the upper price range of $1,200,000 and above, there were 92 pending sales, a 16.4% drop. Condos in the $200,000 to $399,999 range saw a 14.7% year-over-year decrease in contract signings, while the $400,000 to $599,999 range experienced a moderate 8.4% increase in contract signings.

Year-over-year, transactions closing above the original asking price remained consistent for single-family homes but decreased for condos. In January 2024, 23% of single-family sales closed above asking, compared to 25% of sales in January 2023. Roughly 17% of condo sales closed above asking, compared to 21% of sales this past year.

View Full report at: https://issuu.com/advantagerealtyhi/docs/january_2024_oahu_real_estate_report