Honolulu Real Estate and Community News

June 8, 2021

May | Housing Stats

Steep Competition, High Demand Drives Record-Setting Month for O‘ahu Real Estate

Median sales price for a single-family home reaches $978,000 in May 

Closed sales of single-family homes climbed 63.3% and more than doubled for condos with 135.4% more sales compared to this time last year on O‘ahu. In stark contrast to the low activity of May 2020 amid pandemic uncertainties, May 2021 set new records with the median sales price of a single-family home rising to $978,000 – breaking the previous record of $950,000 set in March 2021 – and properties flying off the market at an unprecedented pace.

The median days on the market for single-family homes and condos hit new record lows of 8 and 12 days, respectively. In May, sellers added 430 new listings for single-family homes and 683 new condo listings to the market, representing 24.6% and 34.2% increases over last year. However, by the end of May, 61% of those new single-family home listings and 51% of new condo listings were already sold or in escrow.

 

“The market’s rapid pace is showing no signs of slowing, and buyers entering the market continue to face stiff competition, especially for homes under $800,000,” said Shannon Heaven, president, Honolulu Board of REALTORS®. “Every day REALTORS® are working with buyers to submit their strongest offer and with sellers to secure the best price for their home. As we mark Homeownership Month in June, we encourage anyone thinking about buying a home to work with a REALTOR®. No one knows the market better and is uniquely qualified to help clients work towards their homeownership goal.”

Posted in Housing Stats
May 9, 2021

April | Neighborhood Stats

O'ahu home sales continued at a quick pace with strong sales volume in April

 

Real estate activity spikes a year after the first stay-at-home order

 

Closed sales of single-family homes and condos rose 51.2% and 88.0%, respectively. The wide year-over-year variance is due to 2020’s downturn in real estate activity spurred by the initial shocks of the pandemic and the first stay-at-home order.

 

More than half of single-family homes – 58.9% to be exact – sold above the asking price last month. Meanwhile, high demand for single-family homes continues to keep the median days on market at a low of just nine days.

 

In April, 30.9% of condos sold above the asking price and condo properties spent a median of 13 days on the market, which tied the record low set in June 2017.

 

While new listings for single-family homes are up 58.3% compared to April 2020, active listings remain down 35.3% year-over-year. The condo market tells a similar story with a 60.5% increase in new listings last month, but active listings are still down 17.6%.

 

“A year ago, O‘ahu’s real estate market saw a steep decline in sales and listings as we were confronted with uncertainty about the pandemic’s impact on our community and economy,” said Shannon Heaven, president, Honolulu Board of REALTORS®. “Sustained demand and low inventory levels remain constants in our real estate market and when paired with historically low interest rates, it creates the fast-paced, competitive environment we see in today’s market.”

 

April Housing Stats 

 

Posted in Housing Stats
April 6, 2021

March | O‘ahu’s Housing Market Sales, Prices Continue to Climb to New Heights in March

O‘ahu’s Housing Market Sales, Prices Continue to Climb to New Heights in March

 

Market for single-family homes shatters records with a new median sales price of $950,000

 

Closed sales of single-family homes and condos saw significant double-digit growth of 19.1% and 52.7%, respectively, compared to pre-pandemic activity last March. For the third consecutive month, the median price for a single-family home set a new record of $950,000, representing a 17.3% year-over-year increase and a 3.5% increase over February’s record of $917,500.

 

With sustained limited supply and high demand, the number of single-family homes and condos sold over the asking price nearly tripled compared to March 2020. During the first quarter of 2021, single-family homes sold over asking price made up 50% of the sales compared to just 19% in quarter one last year, while condos sold above the list price accounted for 29% of the sales compared to 10% in the previous year’s first quarter.

 

“Despite new listings, demand continues to outpace our limited housing inventory,” said Shannon Heaven, president, Honolulu Board of REALTORS®. “This lack of inventory is driving a very active and competitive market for prospective home buyers on O‘ahu.”

 

New listings for single-family homes and condos added much-needed inventory to O‘ahu’s housing supply. Single-family homes marked a 12.6% jump with 439 new listings as nearly all regions saw positive growth. The condo market added 715 new listings, marking a 17.2% increase in listings compared to this time last year.

 

Posted in Housing Stats
March 17, 2021

February | Neighborhood Stats

Posted in Housing Stats
March 11, 2021

February | O‘ahu Real Estate Market Continues a Record-Setting Year

Single-family homes reach a new median sales price high of $917,500 while condo market activity heats up.

 

HONOLULU (Mar. 6, 2021) – According to resales figures released today by the Honolulu Board of REALTORS®, the O‘ahu housing market continued to see strong sales throughout February, with single-family home sales increasing 5.3% and condominium sales soaring 41.1% over last year. Most notably, the single-family home market set a record median sales price of $917,500, a nearly 20% year-over-year increase and a 3.9% jump above last month’s record of $883,000.

The fierce competition between buyers resulted in sellers receiving more than their asking price in 48.5% of single-family home sales and 29.1% of condo sales compared to only 19.8% and 8.9%, respectively, in February 2020. The record-setting pace of sales continued in February, as single-family homes spent only nine days on the market.

“Demand for limited inventory and increased purchasing power through low-interest rates has placed sustained upward pressure on prices,” said Shannon Heaven, president, Honolulu Board of REALTORS®. “While the record-setting median price and pace are good news for sellers, it creates a challenging environment for buyers who are up against the tough competition.”

Approximately one-third of single-family homes sold were in the $700,000 to $899,999 range, nearly even with the sales a year ago. However, sales in the $1,000,000 and over range doubled, jumping to 111 sales compared to 55 sales in February 2020. The $400,000 to $499,999 range accounted for 21.3% of sales in the condo market and saw the largest increase in sales volume, up 53.2%.

“For many, the path to homeownership is unique, and the expertise, guidance and professionalism REALTORS® provide is more important than ever,” added Heaven.

 

New listings for single-family homes and condos declined by 19.3% and 2.5%, respectively, offering no relief to the difficulties presented by the lack of inventory. There are 774 active listings for single-family homes and 1,979 active listings for condos available on O‘ahu.

Posted in Housing Stats
Feb. 23, 2021

February | Are Current Housing Prices Overvalued?

Thanks for Mark Fleming, Chief Economist, First American Title Corporation, for sharing below.

 

House Prices Are Hot, But Is Housing Overvalued?

Punxsutawney Phil may have signaled six more weeks of winter, but in housing, it looks like spring (home buying) has already arrived. Typically, the housing market winds down a bit in the winter, but America’s housing market is booming, even in the colder months. The First American Data & Analytics nominal house price index indicates unadjusted home prices nationwide increased by 12.4 percent in December compared with one year ago and are nearly 21 percent above the housing boom peak in 2006. While nominal prices have risen, house-buying power has grown even faster, increasing 21 percent year over year due to historically low rates and still rising incomes for those employed. Even though purchasing power is outpacing price appreciation, the rapid rise in house prices does prompt fears of a repeat of the 2008 crisis, even among some in the housing industry. But last time was different.

 

“Nationally, house-buying power continues to exceed the median sale price and that implies housing is not overvalued today. Even locally, this time is different.”

The housing market today is not the same as the housing market during the bubble years. Most importantly, today’s housing market is not overvalued. Considering only the nominal level of house prices is not sufficient to determine whether the market is overvalued or not. Lower mortgage interest rates and rising incomes correspond with higher house prices as home buyers can afford to borrow and buy more. If housing is appropriately valued, house-buying power should equal or outpace the median sale price of a home. Looking back at the bubble years, house prices exceeded house-buying power in 2006 nationally, but today house-buying power is nearly twice as high as the median sale price nationally. Of course, real estate is local and not all markets are created equal.

 

Most Top Markets Are Undervalued…With a Few Exceptions

Of the top 50 markets tracked, only three markets, all located in California, were overvalued, meaning the median existing-home sale price exceeded house-buying power, in December. The market with the highest overvaluation was Los Angeles, where the median consumer house-buying power in December was just over $590,000, significantly below the median sale price of a home at approximately $729,000. San Francisco and San Jose were also overvalued, although to a lesser extent. However, all three overvalued markets are still significantly less overvalued than during the national housing boom peak in March 2006. Los Angeles, for example, was overvalued by approximately $286,000 in 2006, more than twice what it is today.

The remaining 47 markets are actually undervalued, many significantly so. In fact, in December 2020, the average percentage difference between house-buying power and the median sale price of an existing home in these 47 markets was nearly 59 percent. In 2006, only 34 markets were considered undervalued, and the average percentage difference between house-buying power and the median sale price of an existing home was 39 percent. Even locally, this time it’s different.

 

Where Does the Housing Market Go From Here?

The First American Data & Analytics preliminary nominal house price index anticipates continued strengthening of house price appreciation through February. As the housing market heads into the spring home buying season, the ongoing supply and demand imbalance all but assures more house price growth. During the housing bubble, rapid house price appreciation was not entirely supported by economic fundamentals, but in today’s housing market, nominal house price appreciation has been driven by a historic shortage of supply relative to demand and rate-driven surge in house-buying power. Many find it hard to believe, but housing is actually undervalued in most markets and the gap between house-buying power and sale prices indicates there’s room for further house price growth in the months to come.

 

Posted in Housing Stats
Feb. 11, 2021

January | Market Update

Steep Competition Drives Positive Market Activity for O‘ahu Real Estate Sales

 

Single-family homes sales set a record median price of $883,000

 

HONOLULU – According to resales figures released by the Honolulu Board of REALTORS®, the O‘ahu housing market continued to gain positive momentum into the new year with closed sales of single-family homes and condos increasing 9.8% and 3.4%, respectively over last year. The median sales price for single-family homes set a new record of $883,000, marking a 14.7% increase year-over-year and 1.5% more than last month. Compared to the previous year, the condo median sales price increased 5.4% to $452,000, which is a slight decrease of 0.7% from last month.

 

Steep competition continued to drive the market’s pace, with single-family homes spending a mere median of nine days on the market before entering into a contract. This speedy pace ties with the record low nine days on the market set in September 2020. In addition to quick transactions, sellers received more than their asking price in 54.6% of all single-family home sales in January. Condos spent more time on the market than single-family homes, with a median of 18 days on the market, but this rate is 45.5% faster than the median days on the market last year. Meanwhile, nearly 30% of condo sales closed above the original asking price, which is more than triple the amount compared to last January.

 

“With numerous buyers entering bids over asking price, a significant decline in new listings, and historically-low interest rates, homes are flying off the market,” said the president of the Honolulu Board of REALTORS®. “The best thing you can do if you’re interested in entering this highly competitive market is to work with a trusted REALTOR®, who can apply crucial market expertise and guide you through the process to put your best offer forward.”

 

While single-family homes in the $600,000 to $999,999 range accounted for 56.4% of closed sales last month, most sales increases were generally in the upper price ranges. Homes sold at $800,000 to $999,999 increased by 61.5% and properties sold in the $1 million and up range hiked up 64.1%. In the condo market, properties in the $500,000 to $699,999 price range saw the largest increase in closed sales, up 35.3%.

 

“Though buyer interest in condos appears to be picking up, single-family homes continue to demand consumer attention as the hot-ticket item,” Heaven added.

 

Typically, new property listings see a bump in the new year; however, new listings were down for both single-family homes and condos at 14.7% and 5.3%, respectively. There are 790 active listings for single-family homes and 1,992 active listings for condos available on O‘ahu.

Click here for Jan sales info graph

Posted in Housing Stats
Feb. 2, 2021

December | Neighborhood Stats

If you don't own a home, you might want to consider buying now after checking out stats below, from our friends at First American Title.

Single Family home sales closed in December 2020.

Click here for more info

Posted in Housing Stats
Sept. 26, 2019

August | Market Update & Bill 89 Short Term Rentals

Do you know anyone affected by Bill 89, regarding short-term rentals?

What questions can we help answer? 

O'AHU HOUSING SALES AND MEDIAN PRICES HOLD STEADY IN AUGUST

“Overall, August was a quite stable month for Oahu’s residential real estate market compared to last year,” said Jenny L. Brady, President of the Honolulu Board of REALTORS®. “Sales were at about the same level as 2018 and prices have been steady as well, with the majority of single-family homes and condominiums selling within a narrow price range. We continued to see double digit increases in active listings for both single-family homes and condominiums throughout this year. While properties have remained on the market a little longer, the median days on market is still under a month.”

During August, sales of 360 single-family homes and 512 condominiums closed, a 1.7 percent increase and 1.7 percent decrease, respectively, from the same month last year. This brings total single-family home sales on Oahu to 2,427 for the first eight months of 2019, down just 0.7 percent over the same time period one year ago, while total condominium sales were 3,608, a 6.4 percent decrease. The median price for single-family homes declined marginally by 2.5 percent to $790,000, while the condominium median price decreased by 1.8 percent to $419,500. The year-to-date median prices paid for Oahu properties in the first eight months of this year were $785,000 for single-family homes and $425,000 for condos, unchanged from the 2018 prices for the same time period.

 

Posted in Housing Stats
Oct. 10, 2018

September | Oahu Single-Family Homes Median Price Tops Previous Record

HONOLULU (Oct. 6, 2018) — Oahu’s single-family home median price in September topped the previous record set in August according to resales figures released today by the Honolulu Board of REALTORS®. 

In September, the median price for single-family homes increased by 6.9 percent to reach a new high of $812,500, passing the record set August 2018 at $810,000. The median price for condominiums rose by 0.7 percent to $428,000. Sales for single-family homes declined by 17.4 percent and condominium sales also decreased by 2.9 percent from the same month last year. According to the Days on Market indicator, the median days for single-family homes was 17 and 20 days for condominiums.

“We’re starting to see Oahu’s housing market shift a bit with the decline in sales for both single-family homes and condominiums despite the fact that more inventory has become available,” said Darryl Macha, president of the Honolulu Board of REALTORS®. “Consumers seem to be watching and waiting to see if mortgage interest rates are going to continue to rise. However, for those potential homebuyers who are on the fence,’ this is the time to buy since there is more inventory to consider and mortgage rates are still below five percent.”

The information contained in this report is provided to the National Association of REALTORS® and the Hawaii State Department of Economic Development, Business and Tourism for its official reports. This report reflects information about resales of existing properties only and does not include new home sales. All of the MLS information is compiled from sales reported during the cited months; this data is known only after closing of escrow.

Posted in Housing Stats