While real estate statistics released this week by the Honolulu Board of Realtors® show a modest increase in prices and stable sales volume, the effects of coronavirus — including the economic pandemic, our state’s tourism industry shutting down, jobs and incomes lost — is changing daily. Depending on how long the outbreak lasts, the long-term market effects will remain to be seen. But one thing is sure. The business of real estate is changing.

Since the stay-at-home order went into effect on Oahu on March 23, the Honolulu Board of Realtors® notes a slowdown in the number of new listings coming onto the market. With all open houses temporarily canceled, agents are responding with imaginative resilience in finding alternative methods to continue essential business.

“The coronavirus and the stay-at-home order have affected every business on the island, requiring a shift in how we do business,” says Kalama Kim, principal broker at Coldwell Banker Pacific Properties.

“This includes using video calls and virtual meetings to communicate, marketing properties through social media, virtual tours, 3D Pictures, and good old-fashioned phone calls,” Kim adds. “Our industry is highly encouraging alternative showing options, including video showings, virtual tours, virtual open houses, and video calls. If a buyer requires a physical showing, social distancing pre-cautions are taken every step of the way.”

Bottom line, if you do need to sell property, your Coldwell Banker Pacific Properties agent is there to help you navigate the hurdles of the virus affected market.

“Sellers should consider multiple factors before they decide to sell,” he says. “First and foremost, what are the health risks and how can those be eliminated or minimized. Their sales agent can help walk them through the options on showing and marketing the property.”

 

Sales of Single-Family Homes and Condos | March 2020

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

Single-family sales volume was up in March, with a year-over-year increase of 9.8%, while condo sales dropped 12.2% compared to March 2019.

In March, 303 SF homes closed, compared to 276 a year ago. For reference, the two-year low occurred in February 2019, when 208 homes sold.

There were 410 condos closed last month, compared with 467 in March 2019. The two-year low for condo sales occurred in February 2020, when 316 units closed.

First quarter numbers were consistent with the monthly stats. First quarter 2020, single-family sales volume were up 11.6%, and condo sales were down 0.8%.

“While the numbers illustrate the market is holding strong, we’re only beginning to see the changes in activity,” says Tricia Nekota, president, Honolulu Board of Realtors®. “For example, the majority of closed sales were already in escrow at least 30 days prior to the stay-at-home order, and we saw a double-digit decline in new listings last month. These stats are likely an early reaction to economic uncertainty and indicative of a shift in market activity due to the impacts of COVID-19.”

 

Median Sales Price of Single-Family Homes and Condos | March 2020

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

 

Median prices were up in single-family homes and condos in March. The MSP of a single-family home was $810,000 last month, compared to $782,500 — a 3.5% increase. Year-to-date, the MSP in the first quarter was unchanged from the first quarter 2019 — $780,000.

Condo prices climbed slightly in March as well. The MSP was $435,000, compared to $429,000 a year ago, representing a 1.4% increase. Year-to-date, condo prices are up 4.6%.

 

HOT MARKETS!

In addition to overall island stats, HBR tracks sales by neighborhood. This month’s hot market, includes neighborhoods with an increase in median sale price of 10% or more — single-family and condos (February 2020, compared to February 2019).

NOTE: The Honolulu Board of Realtors reports sales statistics on the Oahu market every month, for the previous month. Data for individual neighborhoods takes more time, hence the HBR report showing neighborhood-specific data pulls figures from February.

Single-family neighborhoods % increase 2020 MSP 2019 MSP
Hawaii Kai 33% $1,800,000 $1,357,500
Makakilo 24% $721,750 $579,999
Moanalua – Salt Lake 30% $905,000 $696,000
Waihiawa 13% $684,000 $608,000
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Condo neighborhoods
Ala Moana-Kakaako 27% $532,000 $420,000
Hawaii Kai 19% $799,500 $671,250
Kailua – Waimanalo 35% $747,475 $552,500
Wahiawa 68% $335,000 $200,000
Waipahu 11% $417,000 $375,000