Housing market on Oahu warms up in February

Since the New Year, the housing market on Oahu has taken what appears to be a decisive turn. For two months running, the statistics report that all three of the key market indicators — prices, sales volume and inventory — are pointing up.

Prices are up again. The HBR released stats from February that show the year-over-year median price of real estate was up last month — up 8.9% to $1,075,000 for single-family homes and up 6.8% to $512,500 for condos.

Sales volume is up again. Compared to February 2023, single-family home sales were up 3.5% and condo sales were up 2.8%.

Inventory is up again. In February, there were 295 new single-family home listings and 533 new condo listings — 26.6% and 15.1% increases, respectively.

Compared to a year ago, total active inventory levels increased by 9.5% for single-family homes and 17.9% for condos. By the end of February, there were 599 active single-family home listings and 1,388 active condo listings — more homes to choose from, if you’re a buyer.

“It may still be too early to tell if this will be a continuing trend in the market cycle, but these numbers sure show us heading in the right direction,” says Mike James, president of Coldwell Banker Realty.” And it sure is nice to break the long streak of declines reported during the previous two years.”

New single-family listings in the $800,000 to $899,000 range surged 88%, with 47 listings added last month, compared to only 25 in February 2023. The largest volume of new listings was in the $1,000,000 to $1,499,999 range, where there were 100 homes were newly listed.

In the condo market, the $300,000 to $499,999 range listings increased by 33.8%. Across the island (except for Hawaii Kai and Kailua) all regions maintained or exceeded last year’s new listing numbers. The most significant increase in new condo listings was in the Metro region, which posted 333 new listings last month, compared to 290 in February 2023.

And while inventory is up, transactions were still closing above the original asking price in 23% of single-family home sales and 18% of condo sales in February.

Sales of Single-Family Homes and Condos | February 2024
Source: Honolulu Board of REALTORS®, compiled from MLS data

Sales volume on Oahu gained some traction in February, compared February 2023 — in both single-family homes and condo closings. It was the second consecutive month (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. Things are decidedly looking up so far in 2024.

The number of homes that closed on Oahu in February was 179, up 3.5% from a year ago. Condo closings reached 334 in January, a modest gain of 2.8%.

HBR points out that homes priced at $1 million or more made up nearly 60% of the total sales in February — compared to 49% in February 2023, a 25.9% year-over-year increase.

Median Sales Price of Single-Family Homes and Condos | February 2024
Source: Honolulu Board of REALTORS®, compiled from MLS data

The median sales prices overall are up in February as well, for the second consecutive month. The MSP of a single-family home came at $1,075,000 — up 8.9% from last year. The condo MSP was $512,500 last month — up 6.8% from last year. These numbers may be intimidating to buyers looking for something more affordable. However, see the market spotlight below for list all the neighborhoods where prices might be more palatable.

NEIGHBORHOOD MARKET STANDOUTS
This month’s spotlight is on Oahu’s more affordable neighborhoods. Specifically, where homes and condos remain near or below Oahu’s median sales prices. Check it out.

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.