Housing market heats up, despite dip in condo sales

Typically, as the summer temperatures get hotter, so does Oahu’s real estate market. June median sales prices for single-family homes and condos saw a modest, year-over-year increase. There was also a modest increase in single-family home sales last month, also very typical for summer. However, condo sales volume in June took a significant dip, dropping from 470 closed units a year ago, to 355 units closed last month.

The Honolulu Board of Realtors® reports single-family buyer activity remained steady, with roughly 65% of the new listings in June still active at the end of the month, and 35% either under contract or sold. During the same timeframe, there was a slowdown in condo buyer activity.  In June, 81% of the 622 new listings remain active at the end of the month, with only 19% under contract or sold. This is a sharp drop from June 2023, when 65% of the new listings were still active by month’s end, and 35% were under contract or sold.

But when we look at sales volume statistics specifically, condo sales in June dropped 24.5% — from 470 units in June 2023, to 355 units sold last month. Year-to-date, however, condo sales were only slightly down at 5.8%.

When broken down into $799,999-and-below, and $800,000-and-up price ranges, the picture was clarified somewhat. In the lower-end price range, condo sales were down 31.8%, from 403 in June 2023 to 275 last month. But in the higher-end range, $800,000-and-up, sales volume was up 19.4% — from 67 a year ago, to 80 units sold last month.

Year-to-date, the same trends were observed when broken down into low-end and high-end sales. Condo sales under $699,999 accounted for a decrease in volume of 9.9% from last year, while sales in the $800,000 to $899,999 range increased by 28.6%.

While the threat of insurance rate increases may have impacted condo sales, it is important to know that rates have also risen for single-family home.

“Insurance rate increases don’t just affect condos,” says Mike James, president of Coldwell Banker Realty. “Though most often its focus is on condo associations and the more extreme cases where insurance rates were up 250% or more.

“Prospective condo buyers should partner with a real estate professional who can help review the necessary condo documents,” James adds. “Condominium maintenance fees cover amenities like swimming pools and exercise rooms, but they also cover the building upkeep and common area maintenance, including landscaping, scheduled maintenance such as a new roof or exterior paint, along with water, sewer, and insurance to cover the overall structures. Individual homeowners carry insurance for improvements inside their unit.

“Buyers can review the association’s financial statements to determine if there are any pending assessments or planned maintenance fee increases,” adds James. “Then the buyer can decide whether to make an offer or keep shopping. Ask a Realtor® to help you. That’s what we’re here for.

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

As reported above, the sales volume of single-family homes increased slightly last month— from 248 in June 2023, and 258 last month.

Condo sales volume, which was significantly lower compared to the same time last year. There were 470 condo sales closed in June 2023, compared to 355 that sold last month. It’s worth pointing out, that the MSP of a condo increased in June.

According to the HBR, (who report mid-month on details of specific neighborhoods) there were some additional bright spots in the condo market:

• Waikiki, Ala Moana-Kakaako, Makiki-Moiliili, and Downtown-Nuuanu brought on the most “new listings” for the month of May. The combined 369 units from those neighborhoods accounted for 56% of the total new listings for the month.
• Waikiki alone closed on 127 condo units, marking a 35% increase from the previous year, while Pearl City-Aiea’s sales volume jumped by 69%, and Kaneohe’s sales volume grew by 82%.

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

Median sales prices were up across the board.  Single-family home MSP in June was up to $1,120,000 — up 6.7% from June 2023 when the MSP was $1,050,000. Year-to-date, the MSP is up to $1,085,000, up 3.3% from $1,050,000 a year ago.

Year-to-date, median prices for SF homes in areas such as Ewa Plain, Makaha-Nanakuli, and Makakilo, declined modestly by 1% to 5%, while prices in the North Shore, Kailua-Waimanalo, Moanalua-Salt Lake, Hawaii Kai, and Kapahulu-Diamond Head regions saw increases of more than 10%.

The MSP of a condo on Oahu in June is $530,000, a 3.9% gain from $510,000 in June 2023. Year-to-date, the condo MSP is $510,000, up 2% from $500,000 a year ago.

Looking at individual neighborhoods on the island, most of the year-to-date condo regions remained within 5% of last year’s median sales prices, with exceptions, such as the Windward Coast, Kaneohe, Ala Moana-Kakaako, North Shore, and Kailua-Waimanalo, which rose 10% or more.

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.

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

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.