2017 Oahu Housing Market Sets Several New Records

The 2017 annual median prices of both condominiums and single-family homes hit all-time highs for the fifth consecutive year.

Additionally, three all-time records were set in June 2017 when the median price of single-family homes hit a monthly high of $795,000 — as close as it has ever come to the $800,000 benchmark — while selling at a brisk 12 days on the market for single-family homes and 13 days for condos. Also a record, the July median price for condos reached $425,000 for the first time, and repeated again in September.

“In terms of inventory, it’s encouraging to see more condominium and townhome units being actively listed,” says Sue Ann Lee, Honolulu Board of Realtors 2017 president.

And while 2017 statistics posted by HBR document 2017 as a banner year, overall, the annual percent increase in prices was a modest, healthy, and stable rise — single-family home prices up 2.7%, and condos gained 3.8%.

“The all-time highs were driven by demand exceeding supply for many segments of the market,” says Kalama Kim, principal broker at Coldwell Banker Pacific Properties, who adds, “Prices will continue to rise until buyers reject those prices either because they are priced out of the market or they no longer see the value in the pricing.”

On the minds of many: The new federal tax plan and its effect on Hawaii homeownership. According to Kim, “We are taking a wait and see approach. Tax changes, no matter how extreme, take time to have a direct effect on our day-to-day lives and our industry.”

Sales of Single-Family Homes and Condos | December 2017

Source: Honolulu Board of REALTORS^®, compiled from MLS data

For December, sales volume for single-family homes rose by 5.9%, while condo sales dropped off by 12.2%, as compared with December stats from 2016. The precipitous 12% decrease in condo sales is somewhat misleading as the December 2016 figures had spiked up 24%, according to HBR’s president.

More precisely, year-to-date figures show the overall tally for the number of single-family homes to have been up 6.3% — from 3,678 homes sold in 2016 to 3,908 in 2017. Similarly, the number of condo sales increased 6.9% — from 5,449 units sold in 2016 to 5,824 closed sales in 2017.

The pace of sales quickened in 2017 — median Days on the Market for a single-family home dropped from 17 days in 2016 to 16 days in 2017. The Days on the Market for a condo unit also dropped — from 19 days in 2016 to 17 days in 2017.

Median Sales Price of Single-Family Homes and Condos | December 2017

Source: Honolulu Board of REALTORS^®, compiled from MLS data

For the fifth consecutive year, the annual median prices — both SF and condominiums — recorded all-time highs. For 2017, the annual MSP for a single-family home hit $755,000, up from the previous record of $735,000 attained in 2016. The median price of a condominium on Oahu also reached an all-time high in 2017, of $405,000 — up from the 2016 all-time high of $390,000.

The slow yet steady appreciation of 2017 prices continued into December. Last month, the MSP for a single-family home increased 2.7% — from $730,000 in December 2016 to $750,000. Condo prices were also up 3.8% — from $390,000 in December 2016 to $405,000 last month.

New listings were up modestly in 2017 — up 4.9% for the year in the single-family home segment, and up 9.4% in the condo segment.

“In 2017, we did see an increase in new listings on the market, which had a positive impact on inventory. A slow growth in inventory will allow buyers to have more choices without hampering seller’s efforts in moving their property.”

Other market indicators also remain strong, including mortgage interest rates.

“We still haven’t seen a consistent or significant increase in mortgage rates,” says Kim. They continue to be very low historically and favorable for buyers.”

HOT MARKETS!

This month’s hottest markets from the latest stats are those neighborhoods where the percentage of sales price to original price received by the seller was 100% or more, all year.

Single-family homes selling in: