HBR reports positive recovery signs for Oahu’s housing market

Despite higher mortgage rates, and recent increases in homeowner’s insurance rates due to fire and weather events around the country, including the Lahaina tragedy, island home values remain strong.

Yet, while home values have increased, affordability faces challenges as the increasing cost of homeownership is forcing buyers to reexamine their buying plans.

Mike James, president of Coldwell Banker Realty, points out that these same costs are also impacting sellers.

“Part of the reason we’re seeing fewer sales, is less available inventory, due in part to a hesitation among sellers to sell right now,” says Mike James, president of Coldwell Banker Realty. “A large percentage of homeowners who might otherwise upgrade or downsize, have outstanding mortgage interest rates below 5%, so to sell now, means swapping their lower rate for a higher one. While some may be inclined to wait for rates to come down, when rates come down, prices go up, so waiting may, practically speaking, not be a good tactic.”

Nevertheless, sales volume last month shot up. And according to the Honolulu Board of Realtors®, this is a good sign.

April stats show that along with increased sales, median prices are up, and inventory — including new listings — are up across the board. Perhaps the most dramatic positive sign, is with the increases in inventory. Active SF inventory is up 15.5% from a year ago — the sixth highest in three years; and condo inventory shot up 37.8% to the highest level in more than three years.

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

Overall, sales were up in April. Significantly up in the single-family home segment, where closed sales climbed 26% — from 208 homes sold in April 2023 to 262 sales last month. In March, SF home sales in Wahiawa, Pearl City-Aiea, and Ewa Plain increased by 150%, 28%, and 11%, respectively. Single-family homes also sold faster than a year ago. Also in March, Several neighborhoods recorded median days on the market of under two weeks, including Kailua-Waimanalo (8 days), Moanalua-Salt Lake (10 days), and Kapahulu-Diamond Head (11 days).

Condo sales too, rose slightly last month — up 2.6% — from 420 a year ago to 431 last month. Conversely, condos in most neighborhoods, took longer to sell than last year but continued to see a median of less than one month.

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

According to the latest data, the median sales prices of both single-family homes and condos have increased. In April, the median sales price of a single-family home was $1,100,000 — up 10% from a year ago, when the MSP of a SF home was $999,995.

Condo MSP gained 5.6% — from $500,000 in April 2023 to $528,000 last month.

Additionally, one in three single-family homes, or 33%, closed above the original asking price, compared to 25% in April 2023 — an increase — suggest an increase in competition, and despite affordability issues. And despite affordability issues that might weaken competition, buyers have shown that the value of real estate on Oahu is resilient.

In the condo segment, only 15% of sales closed above the original asking price, compared to 22% a year ago.

Despite MSP fluctuations reported every month, in the long term, median prices remain remarkably stable.

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.