Oahu sales continue to sell at a record pace and above the asking price

While the December 2021 sales tempo dropped slightly due to a combination of mortgage interest rates increases and fallout from the omicron variant, the month was comparable to past years as buyers and sellers paused for the holidays.

“As we have seen throughout the pandemic, the balance between supply and demand continues to be favorably skewed toward sellers with multiple offers sustaining prices,” says Kalama Kim, principal broker at Coldwell Banker Realty.

According to the 2021 annual stats released by the Honolulu Board of Realtors, factors such as bidding wars, multiple offers and low inventory pushed prices higher for 12 consecutive months.

Indeed, the year-to-date median percentage of the sales price to the original list price received reached 102% for single-family homes and 100% for condos in 2021. This data represents that more than half of single-family sellers accepted offers over their original asking price, and at least half of condo sellers sold for their full asking price or more.

The year closed with the overall sales volume up 37.3% from 2020. Single-family homes increased by 17.9.% while condo sales soared up a whopping 53.1%, compared to 2020.

“2021 was an unbelievably banner year,” says Mike James, president of Coldwell Banker Realty. “The most notable real estate result in 2021 was the ongoing rise in prices and demand for housing exceeding the record numbers we saw during the second half of 2020.

However, James notes that it was the continued lack of inventory that surprised him most about the 2021 market. “In past cycles, when prices rise to record levels, owners are motivated to reap the rewards by putting their house on the market. Even though 2021saw record sales prices, inventory didn’t surge.”

Fueled by the increasing number of sales in the multi-million-dollar ranges, the median sales price of a single-family home reached $1,050,000 in three separate months during 2021. This price surge prompted many single-family buyers to consider condos and townhomes. With more buyers turning to condos and townhomes, sales activity surged at every price point and every region of the Oahu condo market.

Overall, in 2021, there were more new single-family and condo listings than in 2020 — 8% more SF, and 15% more condos were added to the market inventory, perhaps offering some hope to buyers.

Year-to-date, the median days on the market lessened to 9 days for a single-family home and 12 days for a condo/townhome — decreases of 35.7% and 50% from 2020, respectively.

Sales of Single-Family Homes and Condos | December 2021
Source: Honolulu Board of REALTORS^®, compiled from MLS data

The number of single-family homes that closed escrow in December was down 10% from the same period in 2020 — from 420 to 378. Condo sales volume, however, was up 15.4%  — from 514 in 2020 to 593 last year, illustrating the buyer-segment shift above.

Year-to-date, 12-month totals indicate both segments recorded more sales than did in 2020.

Single-family home closings in 2021 were up a respectable 17.9% — from 3,838 for the year in 2020, to 4,526 last year.

Condo sales rocketed up 53.1% for the year, with a total of 7,203 sales in 2021, far outpacing the 2020 tally of 4,706.

Median Sales Price of Single-Family Homes and Condos | December 2021
Source: Honolulu Board of REALTORS^®, compiled from MLS data

Median sales prices have been rising for 14 straight months despite unique market conditions brought on by the pandemic.

The MSP of a single-family home on Oahu increased by 20.7%, from $870,000 in December 2020 to $1,050,000 last month — tying the MSP record set in August 2021 and matched again in September. The increase of $180,000 in one year is remarkable.

In 2021, 60.8% of single-family homes sold for more than the asking price, compared to 31% in 2020.

The MSP of a condo was up 6.6% in December — from $455,000 to $485,000.

As reported in the SF market, condos in the higher price ranges saw more than double the sales.

The annual MSP of a single-family home on Oahu in 2021 rose by 19.3% to $990,000. The annual MSP of a condo was $475,000 — up 9.2% from 2020.

NEIGHBORHOOD MARKET STANDOUTS

Even in neighborhoods typically thought to be more affordable, prices are ticking up. The MSP indicates that half the properties in the neighborhood sold for more, and half sold for less. Below are the neighborhoods where SF prices are available below MSP of $1 million and condos below $500,000.

To find out the MSP for your neighborhood, ask your Coldwell Banker Realtor®.

SOURCE: Honolulu Board of REALTORS®, compiled from MLS data.