O‘ahu Home Sales Rise Month-to-Month, Remain Down Year-Over-Year
Year-to-date, median sales prices dip for single-family homes and condos
Closed sales of single-family homes and condos declined year-over-year, dropping 19.7% and 16.9%, respectively; however, compared to a month ago, single-family homes recorded a 12.5% uptick in sales, while condo sales remained steady.
Compared to 2022, the median sales price for a single-family home dipped 1.4% to $1,110,000, while the condo median sales price increased 3.3% to $515,000. From a year-to-date perspective, the median sales prices for O‘ahu properties fell for single-family homes to $1,050,000, a 5.7% decline from last year, and for condos to $502,000, down 1.6%. Around 33% of single-family homes and approximately 26% of condos sold above their original list price, with sellers receiving an average of 99.1% and 99.6% of their original list prices, respectively.
Sales volumes varied significantly, with single-family homes in the $900,000 to $1,199,999 range seeing a 39.2% decline and a 13.1% increase in the more affordable $600,000 to $899,999 range. For condos, the $100,000 to $499,999 price range experienced the most significant decline in sales volume, falling 24.3% year-over-year, while higher price points remained stable.
August saw more active inventory of single-family homes in the $799,999 and below range, rising 33.8% from a year ago. The Kāne‘ohe and Leeward regions experienced the largest increase in units of active inventory, with year-over-year increases of 52.9% and 16.7%, respectively. Condo inventory increased at most price points, with the bulk of the active listings in the $300,000 to $699,999 range, reflecting a 20.7% hike compared to last year.
O‘ahu Home Sales Dip Amid Rising Borrowing Costs
Active inventory and days on market increase as sales volume continues to decline
Both single-family homes and condos experienced a slump in sales as elevated borrowing costs continued to dampen summer buying activity. Single-family home sales fell by 28.2%, and condo sales dropped by 18.5% compared to the same time last year. In both markets, properties that sold in July spent a median of 16 days on the market, just a slight jump up from July 2022, where single-family homes had a median of 11 days and condos had 12 days.
“While the market is different compared to last year, we’re seeing similar trends month to month. Rising borrowing costs have buyers taking a more cautious approach, so homes remain on the market for longer periods, but demand and median sales prices are holding steady due to low inventory,” said Fran Villarmia-Kahawai, president of the Honolulu Board of REALTORS®.
Median sales prices were stable year-over-year, with single-family homes down 1.6% to $1,090,000 and condos even at $500,000. Approximately 53% of single-family home sales closed for the full asking price or more, compared to 65% a year ago. In the condo market, 47% of sales received the total asking price or more compared to 60% of sales in July 2022.
The market also experienced a decline in new listings, with a 28.8% year-over-year drop for single-family homes and a 15.4% fall for condos. However, active inventory for single-family homes and condos remained relatively unchanged from the previous year, with a modest 2.6% growth in active single-family home listings and 9.9% in active condo listings.
Sales Volume of O‘ahu Homes Picks Up Month-to-Month, Still Down Compared to 2022
Properties in both markets spend longer on the market, approximately three weeks
The sales volume of O‘ahu homes improved month-over-month, rising 26.0% for single-family homes and 4.3% for condos in May. However, closed sales declined 23.8% for single-family homes and 36.3% for condos compared to the same time last year.
The median sales price for a single-family home ($1,109,000) was 3.9% below the current record set in May 2022 ($1,153,500). Similarly, on the condo side, the median sales price dipped modestly by about 2.2% from $516,500 in May 2022 to $505,000 in May 2023.
“Despite lower sales volume, the median prices for O‘ahu properties haven’t changed much over the past year,” said Fran Villarmia-Kahawai, president of the Honolulu Board of REALTORS®. “Lack of inventory continues to drive demand as more kamaʻāina strive to become homeowners.”
Single-family homes and condos spent two times longer on the market than last year at 21 and 20 days, respectively, compared to 10 days in 2022. More single-family home sales closed at the full asking price or more than in the past seven months. However, this figure changes year-over-year, as approximately 45% of these sales in May received the full asking price or more, compared to about 75% of sales in May 2022. The same is true for condos, as roughly 45% of condo sales closed for the full asking price or more compared to 65% of sales in May 2022.
O‘ahu Home Sales Slow in April While Days on Market Improves from Last Month
Single-family home and condo sales volume, median prices, new listings dip compared to 2022
April single-family home and condo sales on O‘ahu slipped 43.0% and 37.5%, respectively, year-over-year, but only 11.9% and 5.4% since last month. Despite fewer sales, properties that sold in April spent less time on the market than one month ago. The median days on market for condos was 20 days in April compared to 24 days in March and 24 days for single-family homes compared to a 36-day median in March.
Our April Monthly Statistics Report shows:
“We continue to see the market settle following the spike in interest rates and rising inflation,” said Fran Villarmia-Kahawai, president of the Honolulu Board of REALTORS®. “Compared to the frenetic real estate market we saw the last two years, sales momentum is sluggish, but median prices are holding steady due to low inventory.”
Median Sales Price for O‘ahu Condos Reaches Record High
Single-family home and condo sales pick up in March after a seasonal slump
O‘ahu’s housing market experienced a boost in activity from February to March, with sales rising approximately 36% month-over-month in both single-family home and condo markets. Although year-over-year sales continued to fall short of 2022 – down 26.5% for single-family homes and 33.9% for condos year-over-year – 236 single-family homes and 444 condos sold in March 2023.
Median sales prices for March 2023 increased from January and February but were mixed compared to a year ago. The monthly median price for single-family homes declined 5.8% from $1,150,000 in March 2022 to $1,083,750 last month. Meanwhile, the condo median sales price in March set a new record of $536,000, 0.4% above the previous record of $534,000 set in June 2022, and a 4% rise year-over-year.
In March 2023, 58.5% of single-family home sales closed at $1,000,000 or more, pushing the median sales price above $1 million. However, the $600,000 to $799,999 price range was one of the few to see a year-over-year increase in sales volume, jumping 70.6% from 17 to 29 single-family home sales compared to the same time last year. Meanwhile, the $800,000 to $999,999 price range accounted for more than a quarter of the month’s sales.
“O‘ahu’s real estate market is rapidly changing, and it’s been an active first quarter despite year-over-year declines in some statistics. While we see advantageous conditions for buyers, including fewer bid-ups and longer days on market, prices are still high, which incentivizes sellers to list their property,” said Fran Villarmia-Kahawai, president of the Honolulu Board of REALTORS®.
Though the housing market is no longer experiencing the frenzy of a year ago, buyers are showing their interest in purchasing a home. According to U.S. News:
“Housing markets have cooled slightly, but demand hasn’t disappeared, and in many places remains stronglargely due to the shortage of homes on the market.”
That activity can be seen in the latest ShowingTime Showing Index, which is a measure of buyers actively touring available homes (see graph below):
The 62% jump in showings from December to January is one of the largest on record. There were also more showings in January than in any other month since last May. As you can see in the graph, it’s normal for showings to increase early in the year, but the jump this January was larger than usual, and a lot of that has to do with mortgage rates. Michael Lane, VP of Sales and Industry at ShowingTime+, explains:
“It’s typical to see a seasonal increase in home showings in January as buyers get ready for the spring market, but a larger increase than any January before after last year’s rapid cooldown is significant. Mortgage rate activity this spring will play a big role in sales activity, but January’s home showings are a positive sign that buyers are getting back out there . . .”
It's important to note that mortgage rates hovered in the low 6% range in January, which played a role in the high number of showings. What does this mean? When mortgage rates eased, buyer interest climbed. The jump in home showings early this year makes one thing clear – while rates may be volatile right now, there are interested buyers out there, and when mortgage rates are favorable, they’re ready to make their move.
New Year Sees Home Sales Fall by Half, Median Sales Prices Dip Modestly
Single-family home median sales price falls below $1 million
The new year began with closed sales of O‘ahu properties falling significantly year-over-year, with single-family homes dropping 54.0% and condos declining 50.2%. After 17 consecutive months of single-family home prices reaching $1,000,000 or more, January ended with a single-family home median sales price of $970,000, representing a 7.6% decline compared to January 2022. The condo market also saw the median sales price dip 2.9% to $495,000.
“The median sales price for a single-family home on O‘ahu fell below the $1,000,000 mark because costlier financing is placing some downward pressure on prices,” says Fran Villarmia-Kahawai, president of the Honolulu Board of REALTORS®. “Sellers are having to adjust their approach as buyer demand wanes due to elevated interest rates.”
Properties are spending a median of 24 days on the market, roughly double the time compared to last year when the median for single-family homes was 12 days, and the condo median was 14 days. New listings are also slowing, dropping 16.3% for single-family homes and 21.5% for condos. Despite this, active inventory continues to grow compared to 2022, up 77.2% in the single-family home market and 23.7% in the condo market.
I read a few articles a week to keep up with housing market trends, and this one made incredible sense as I've seen in my own practice, and in O'ahu's market. There is so much "poor housing news" meant to drive traffic etc.. this I felt was worth sharing. Although originally published in Aug of 2022, and from Sacramento, CA,- the comments still hold mostly true here on O'ahu, although now I feel our market is warming up again from a STALE winter. Also, the meme's got a great laugh from me!
I hope you enjoy reading as much as I did, pasted with link to full article.
Thank you for the post: SacramentoAppraisalBlog.com.
Advice for buyers & sellers in today’s housing market
The housing market has shifted, and today I have some practical advice for buyers and sellers. This is coming from hundreds of conversations every month as well as stats I’m pulling...
ADVICE FOR BUYERS:
Don’t lowball like it’s 2008: It’s not a name-your-price market, so you still have to make reasonable offers instead of way below market value. I find some buyers think it’s 2008, and that’s not the vibe right now. For instance, a property was priced well at $450,000 and a buyer offered $320,000 (final closed price was $455,000). If you get lucky at a low level, great. I’m just saying, being reasonable rather than lowballing is likely a better strategy.
O‘ahu Home Sales Cool in 2022 Amid Rising Mortgage Rates
Single-family home and condo sales volume saw double-digit declines
despite a strong start to the year
In December, sales for single-family homes plummeted 46.6%, while condo sales were down 39.3% year-over-year. The median sales price for a single-family home dipped slightly to $1,049,500, while the median condo sales price rose to $502,500.
In the single-family home market, the $800,000 to $999,999 range saw a whopping 225% increase, with 143 listings available at the end of the year compared to just 44 listings in December 2021. In the condo market, active inventory most significantly increased primarily in the mid to upper price ranges. Year-over-year, active inventory in the $400,000 to $1,999,999 price range rose by 50%.
2022 Year-End Stats
In 2022, O‘ahu’s real estate market was marked by transition. The year began similarly to 2021 with intense competition among buyers, with mortgage rates still hovering near historic lows and ended with headwinds when these rates rapidly and sharply rose. Key highlights included:
The year ended with 3,474 single-family home sales, a 23.2% year-over-year decline. The year-end median price climbed to $1,105,000, an 11.6% increase compared to the 2021 annual median price of $990,000.
In 2022, condo sales also fell, ending the year with 6,353 closed sales and down by 11.8%. Year-end sales were still well above pre-pandemic sales volume dating back to 2007. The condo market ended the year with an annual median sales price of $510,000, up 7.4% from a year ago.
“While O‘ahu’s real estate market started the year strong, the steep rise in interest rates and fluctuation in inventory are shifting the market dynamic,” says Fran Villarmia-Kahawai, president of the Honolulu Board of REALTORS®. “Although buyers face higher financing costs, they now have more options to choose from, and competition isn’t as fierce.”