April 13, 2022

March | Market Update

Single-Family Homes, Condos on O‘ahu Mark Record Median Sales Prices

Luxury sales pull the single-family home price to $1,150,000, while condos rise to $515,500

The first quarter of 2022 closed with new record median sales prices for both single-family homes and condos at $1,150,000 and $515,500, respectively. The March median sales price for single-family homes reflects a 21.1% increase from last year and is 2.2% above the previous record of $1,125,000 set just a month ago. The condo market’s median sales price of $515,500 represents a 14.3% hike compared to this time last year and a 1.1% increase from the prior record of $510,000 set in January 2022.

In March, single-family home sales fell 11.1% year-over-year, while the condo market sales volume remained strong with a 7.3% rise compared to March last year. Combined sales saw a modest bump, up 0.6% compared to March 2021 sales.

Fewer single-family homes were sold in March and the first quarter, with the most significant decline occurring in the $899,999 and below range, down 56.3% with just 70 closings in March. On the other end, the luxury single-family home market is picking up with 27 single-family homes sold in the $3 million and above range, marking a 68.8% jump year-over-year. In the condo market, sales in the $700,000 to $799,999 range recorded the highest volume increase, up 125.8%, with most of these sales occurring in the Metro and Ewa Plain regions.

“More luxury sales coupled with declining affordable inventory and sales are pulling the median price upwards in the single-family home market,” said Chad Takesue, president of the Honolulu Board of REALTORS®“It’s no surprise that rising prices are pushing more prospective buyers to consider condos, driving the steady and strong demand we’ve been seeing for these properties.”

 

Posted in Housing Stats
March 9, 2022

February | Market Update

Condos Outperform Single-Family Home Sales Following Seasonal Lull


Sparse inventory, sustained demand drives new record 
single-family home median price at $1,125,00

The single-family home market continues to lag behind condos in sales, with single-family home sales falling 7.3% compared to last February, while condo sales were up 9.0% year-over-year. Sparse inventory and sustained demand drove the median single-family home price to a new record high of $1,125,000, up 22.6% from this time last year and 7.1% higher than the previous record of $1,050,000 set in August 2021. The condo market saw a modest bump in the median sales price of $497,000, rising 8.6% from one year earlier.

Closed sales through the first two months of 2022 remain ahead of last year, increasing 2.9% for single-family homes and 23.9% for condos. Single-family homes in the $899,999 and below range saw the largest decline with a 54.0% drop compared to this time last year. On the other hand, condos continued to mark strong sales volume for the 15th month in a row with positive year-over-year sales growth, with properties sold at $500,000 and above accounting for most of the sales increases up 28.2%.

“We saw a typical dip in sales in January to February of this year, which we attribute to muted activity around the holiday season,” said Chad Takesue, president, Honolulu Board of REALTORS®. “Along with rising median sales prices for both markets, median list prices are also starting to tick up as sellers take advantage of the lack of competition.”

 

Posted in Housing Stats
Feb. 9, 2022

January | Market Update

Strong Demand Continues to Drive Oʻahu’s Housing Market in New Year

Condos set a new record median sales price of $510,000 

2022 began with a sharp jump in both single-family home and condo sales – combined, O‘ahu’s housing market saw a 28.6% sales increase compared to January 2021. While the single-family home median sales price held steady for the third consecutive month at $1,050,000, the condo market set a new monthly median sales price record of $510,000, surpassing the previous $500,000 set in August 2021.

Single-family home sales were up 12% year-over-year, while condo sales soared 40.8% compared to this time last year. Properties continued to move at a brisk pace, with single-family homes spending a median of 12 days on the market and 14 days for condos.

“Although sales are ahead of January 2021, we’re facing low inventory and rising interest rates that may temper the unprecedented market we saw throughout last year,” said Chad Takesue, president, Honolulu Board of REALTORS®. “However, as long as low inventory, near-record low interest rates and strong demand for housing remain, we’ll continue to see fierce competition and properties move off the market at a fast pace.”

 

Posted in Housing Stats
Jan. 9, 2022

December | Market Update

Oʻahu’s Housing Market Marks Positive 2021 for Sellers


Properties continued to sell at record speed and over the asking price
amid persistent low inventory levels

 

The O‘ahu housing market ended 2021 with a slight decline of 10.0% in single-family home sales and a healthy 15.4% increase in condo sales year-over-year. The median sales price for single-family homes tied the previously set record in August 2021 at $1,050,000, while condos saw a median sales price of $485,000, slightly up from December 2020.

While O‘ahu’s single-family home market saw new listings, pending sales, and total inventory in escrow all drop year-over-year, the condominium market remained strong, with new listings up 13.1%, pending sales jumped 16.7% and total inventory in escrow rose 11.5%. 

“It was clearly a seller’s market in 2021,” saidChad Takesue, president of the Honolulu Board of REALTORS® in 2022.“Not only did properties enter escrow at a record pace, but they often marked multiple offers and sold for a premium.”
 
Single-family homes were in high demand throughout 2021, but sales leveled off in the last quarter of the year as buyers faced low inventory and a slight rise in average mortgage rates since the summer and early fall.

“With high demand and dismal inventory of single-family homes, buyers turned their sights to condos, driving competitive activity in some areas and leading to low supply in this market as well. As a result, every price point in the condo market saw more sales in 2021 and every region across Oʻahu marked more sales,” added Takesue.

 

Posted in Housing Stats
Dec. 27, 2021

2022 Predictions

Three Predictions on the Strength of the Real Estate Market in 2022

*Disclaimer: All real estate purchases involve risk of loss.

The real estate market in 2021 was undeniably hot. As we approach the new year, many homebuyers and sellers are wondering what to expect in 2022. 

Mike Simonsen, founder of Altos Research, identified trends in the real estate market during the pandemic well before the headlines. He returns to offer a high level forecast for 2022 with three predictions: 

 1. Demand will continue to be strong into 2022.

Homes are moving faster than they typically do in December. Elevated demand is a bullish sign for 2022. 

Days on Market

2. Low inventory will continue to be a major issue.

Inventory has been on a downward trajectory for years, and recent strong demand has only accelerated the trend. While 2022 will start with record low inventory levels, rising interest rates may cool the market enough to allow some inventory to build back up. 

Low Inventory

 3Home prices will remain high into 2022.

In 2021, median home prices jumped by about 10% nationally. Tight inventory and strong demand will keep prices high - a strong sellers market - but economic changes (such as inflation and rising interest rates) could have a cooling effect on the market. 

Median Home Prices

Disclaimer: All real estate purchases involve risk of loss.
Posted in blog article
Dec. 9, 2021

November | Market Update

 

Condos Outpace Single-Family Homes in Sales, New Listings
Selling at a record pace, condos spend a mere nine median days on the market

 

Closed sales activity for single-family homes lags behind the condo market, with single-family properties marking just a 9.8% increase in sales compared to 47.7% jump for condos in November. The median prices for single-family homes and condos tied the previously set record prices at $1,050,000 and $500,000, respectively.

Though single-family homes continue to move into escrow at a quick pace of 11 days, it’s the condo market that set a new record low median days on the market of only nine days. Buyers scooped up condo properties an entire week faster compared to November 2020’s median of 16 days on the market. Meanwhile, around 61% of single-family home sales and 42% of condos sales closed over the asking price in November.

“It’s evident that O‘ahu buyers are entering the market well-prepared and are wasting no time, working with their REALTORS® to get their offers submitted and accepted as soon as possible,” said Shannon Heaven, president, Honolulu Board of REALTORS®.“Additionally, a large portion of sellers are receiving bids above their original list prices, which tells us that we remain in a competitive market despite the expected holiday lull.”

 
Year-over-year new listings for single-family homes dropped 5.5%, with just 358 new properties entering the market in November. On the other hand, sellers added 639 new condo listings, representing a 13.9% uptick compared to this time last year.
 
“Sales in both the single-family home and condo markets appear to have leveled off over the past few months. However, we continue to exceed 2020 sales, which dropped due to the initial waves and economic fallout of the COVID-19 pandemic,” added Heaven.

 

Posted in Housing Stats
Nov. 7, 2021

November | 2 reasons why waiting a year to buy could cost you

Thanks to Keeping Current Matters for sharing below.

If you’re a renter with a desire to become a homeowner, or a homeowner who’s decided your current house no longer fits your needs, you may be hoping that waiting a year might mean better market conditions to purchase a home.

To determine if you should buy now or wait, you need to ask yourself two simple questions:

What will home prices be like in 2022?

Where will mortgage rates be by the end of 2022?

Let’s shed some light on the answers to both of these questions.

 

What will home prices be like in 2022?

Three major housing industry entities project continued home price appreciation for 2022. Here are their forecasts:

Freddie Mac: 5.3%

Fannie Mae: 5.1%

Mortgage Bankers Association: 8.4%

 

Using the average of the three projections (6.27%), a home that sells for $350,000 today would be valued at $371,945 by the end of next year. That means, if you delay, it could cost you more. As a prospective buyer, you could pay an additional $21,945 if you wait.

 

Where will mortgage rates be by the end of 2022?

Today, the 30-year fixed mortgage rate is hovering near historic lows. However, most experts believe rates will rise as the economy continues to recover. Here are the forecasts for the fourth quarter of 2022 by the three major entities mentioned above:

Freddie Mac: 3.8%

Fannie Mae: 3.2%

Mortgage Bankers Association: 4.2%

 

That averages out to 3.7% if you include all three forecasts, and it’s nearly a full percentage point higher than today’s rates. Any increase in mortgage rates will increase your cost.

 

What does it mean for you if both home values and mortgage rates rise?

You’ll pay more in mortgage payments each month if both variables increase. Let’s assume you purchase a $350,000 home this year with a 30-year fixed-rate loan at 2.86% after making a 10% down payment. According to the mortgage calculator from Smart Asset, your monthly mortgage payment (including principal and interest payments, and estimated home insurance, taxes in your area, and other fees) would be approximately $1,899.

That same home could cost $371,945 by the end of 2022, and the mortgage rate could be 3.7% (based on the industry forecasts mentioned above). Your monthly mortgage payment, after putting down 10%, would increase to $2,166.

 

The difference in your monthly mortgage payment would be $267. That’s $3,204 more per year and $96,120 over the life of the loan.

If you consider that purchasing now will also let you take advantage of the equity you’ll build up over the next calendar year, which is approximately $22,000 for a house with a similar value, then the total net worth increase you could gain from buying this year is over $118,000.

Bottom Line

When asking if you should buy a home, you probably think of the non-financial benefits of owning a home as a driving motivator. When asking when to buy, the financial benefits make it clear that doing so now is much more advantageous than waiting until next year.

 

Posted in blog article
Nov. 7, 2021

October | Market Update

O‘ahu’s Housing Market Holds Steady Ahead of Holiday Season Lull
Median prices of single-family homes stand at $1 million, condos at $500K


Closed sales rose year-over-year with single-family homes ticking up modestly 10.4% and condo properties surging higher to 27.3%. The median sales price for a single-family home fell slightly from the August 2021 record of $1,050,000 to $1,000,000, while the median condo price tied the August record of $500,000.

Single-family home sales in the top price range of $2,000,000 and up range skyrocketed 188.2%, followed by closed sales of properties in the $900,000 to $1,099,999 range increasing 67.2% compared to October 2020. Year-over-year, the condo market recorded more than double the sales in the $600,000 and up range, though the bulk of sales occurred in the $300,000 to $599,999 range. The Metro region accounted for the majority of the sales volume growth, with 343 condo sales in October, rising 68.1% or 139 sales above last October. So far this year, closed sales of single-family homes and condos are up 22.6% and 58.8%, respectively. 

“The market appears to be holding steady, and the increase in closed sales for all properties is a welcome sign that Hawai‘i families are getting their offers accepted and moving into their homes,” said Shannon Heaven, president, Honolulu Board of REALTORS®. “Homeownership is about much more than simply owning a home. It poses many benefits including building equity and generational wealth and reaping the benefits of tax deductions and deductible expenses.”

Posted in Housing Stats
Oct. 6, 2021

September | Market Update

2 Out of Every 3 Single-Family Homes Sell for Over the Asking Price in September

Year-over-year market activity continues to mark gains, but month-to-month closed sales dip

Closed sales of single-family homes and condos in September continued to outpace sales activity from the same time last year, recording 8.4% and 34.9% increases, respectively. However, sales dropped slightly compared to August, with single-family homes down 0.2% and condos dipping 8.9%. The median price for a single-family home remained at $1,050,000, while the median condo price rose 7.4% year-over-year to $478,000.

Around 57% of single-family homes sold in September were priced at $1 million and above, and the most volume growth occurred in the $1,000,000 to $1,399,999 range, with more than double the sales as last September. Roughly two out of every three single-family homes sold last month closed above the original asking price. The practice of bidding over the asking price was most prevalent in the Ewa Plain region, representing more than 80% of the region’s third-quarter sales.

Sales of condo properties in the $700,000 and above price range more than doubled year-over-year with 129 closed sales compared to just 57 last September. Meanwhile, 39.6% of condos sold for more than the asking price in the third quarter, especially in the Central, Ewa Plain, and Makakilo regions, where this occurred in over 70% of sales.

“We’re seeing a slight decrease in total sales month-to-month as families focus on the return to the school year and prepare for the holiday season, which is typical for this time of the year,” said Shannon Heaven, president, Honolulu Board of REALTORS®. “Despite the modest dip in market activity, the majority of homebuyers continue to bid over the asking price in the hopes of securing a property to call home.”

Posted in Housing Stats
Sept. 14, 2021

August | Market Update

Median Price for Single-Family Homes on O‘ahu Tops $1 Million

Sustained demand for housing and significant sales volume at higher price points drive record-high median prices for single-family homes and condominiums in August

Last month, single-family homes and condos reached new record-high median prices for the second consecutive month at $1,050,000 and $500,000, respectively. The persistent competition in affordable price ranges and more closed sales at higher price points in both single-family home and condo markets are putting upwards pressure on median home prices.
 
The $1,050,000 single-family median sales price is 25.1% higher than a year ago and up 5.8% above last month’s record. This is the fourth consecutive month single-family homes have set a record median, and except for April, a new record has been set each month this year. Sales jumped 14.9% compared to last August.
 
The condo market attracted buyers at all price points, with year-over-year condo sales rising 65% last month. The $500,000 condo median sales price is up 16.3% over last August.
 
The statistics in both single-family and condo markets followed similar trends with more new listings, low median days on market and increased offers over asking.

 

Posted in Housing Stats