There are some excellent reasons to be excited about the future of our local real estate market.
Prices are up. The Honolulu Board of Realtors® released the stats from January that show the year-over-year median price of real estate was up last month — back over $1 million for single-family homes and over $500,000 for condos.
Sales volume is up. Compared to January 2023, single-family home sales were up 22.7%, and condo sales were up 6.2%.
Inventory is up. There are more homes to choose from. Single-family homes currently listed for sale are up 10.2%, and for condos, 12.7%.
“It’s a trifecta of market indicators — all three of our most closely watched real estate benchmarks improved in January,” says Mike James, president of Coldwell Banker Realty. “It’s a great way to start the year.”
The icing on the cake: The Federal Reserve is expected to cut interest rates in 2024.
“So, why wait for rates to fall?” adds James. “Remember, as rates fall, prices may go up. And if rates fall after you buy, you can refinance to bring your rate down. Or go with an adjustable-rate loan, which will adjust your rate with the market. By acting now, rather than waiting, you can stay one step ahead of the looming competition among other buyers waiting for rates to fall before they jump back in.”
And, there’s more good news for buyers. Properties stayed on the market slightly longer than a year ago, giving them more time to shop. The number of days on the market is up 20.8% —from 24 days a year ago to 29 days last month in both single-family and condo segments.
Sales volume for single-family homes increased across all price points, with the most significant surge in homes priced at $1.3 million or higher. In January, sales in this price range more than doubled. It is worth noting that more than 70% of these sales occurred in Kailua, Diamond Head, Metro Honolulu and Hawaii Kai.
And while inventory is up, transactions were still closing above the original asking price in 23% of single-family home sales and 17% of condo sales in January.
Sales of Single-Family Homes and Condos | January 2024
Source: Honolulu Board of REALTORS®, compiled from MLS data
Oahu single-family home sales were up in January, compared with sales volume data from January 2023 — in both single-family homes and condo closings. It was the first time in 24 months that both segments reported a bump up in closings — since January 2022. The most significant drop in sales volume was a year ago — in January 2023 — when sales volume was down 54% and 50%, respectively.
The number of homes that closed on Oahu in January was 184, compared to 150 a year ago. Condo closings hit 292 in January, compared to 275 a year ago.
While it’s too early to tell if this is a trend in the market cycle, it sure is nice to break the long streak of declines reported during the previous two years.
Median Sales Price of Single-Family Homes and Condos | January 2024
Source: Honolulu Board of REALTORS®, compiled from MLS data
The median sales prices overall are up as well. And while MSPs have been inching up and down slightly during 2023, the tick-up in January is promising.
The MSP of a single-family home came at $1,021,016 — up 5.3% from last year’s $970,000. The condo MSP was $502,500 last month — up 1.5% from last year’s median of $495,000.
For some perspective, in 2020, the annual MSP for a single-family home was $830,000, and for a condo was $435,000.
NEIGHBORHOOD MARKET STANDOUTS
This month’s spotlight is on Oahu’s most affordable neighborhoods. Specifically, homes and condos are selling below the island’s median sales prices. Check it out.
| Median Sales Price | ||
| Single Family | December 2023 | December 2022 |
| Downtown-Nuuanu | $995,000 | $1,026,944 |
| Ewa Plain | $855,000 | $845,000 |
| Kalihi – Palama | $800,000 | $922,500 |
| Makaha – Nanakuli | $605,000 | $702,500 |
| Makakilo | $910,000 | $1,010,000 |
| Mililani | $995,000 | $1,275,000 |
| North Shore | $875,000 | $1,785,000 |
| Pearl City – Aiea | $975,000 | $986,000 |
| Wahiawa | $825,000 | $820,000 |
| Median Sales Price | ||
| Condos | December 2023 | December 2022 |
| Kalihi – Palama | $477,500 | $388,000 |
| Makaha – Nanakuli | $290,000 | $287,000 |
| Makiki – Moiliili | $440,000 | $382,500 |
| Mililani | $485,000 | $533,000 |
| Moanalua – Salt Lake | $399,000 | $425,000 |
| Pearl City – Aiea | $445,360 | $540,000 |
| Wahiawa | $355,000 | $232,500 |
| Waialae-Kahala | $370,000 | $610,000 |
| Waikiki | $430,000 | $440,000 |
For an up-to-date market analysis of your property, contact Coldwell Banker Realty today. We are happy to provide you with a current valuation on your home.
SOURCE: Honolulu Board of REALTORS®, compiled from MLS data.
