Oahu Real Estate Market Sees Increased Sales and Inventory in October

The Federal Reserve again cut its benchmark interest rate this week by a quarter percentage point, bringing 30-year, fixed-rate mortgages at First Hawaiian Bank to 6.5%, and a 15-year fixed rates to 5.625%.

“Real estate is all about affordability, and lower rates will definitely help buyers to qualify, and boost affordability. With new listings and more inventory, buyers will find more choices for a home that best fits their budget and their needs,” says Mike James, president of Coldwell Banker Realty.

November market indicators are strong, with closed sales, median sales prices, and active inventory up across the board in October for both single-family and condo segments.

Single-family home sales increased modestly around the island compared to October 2023, with the largest gains in the Ewa Plain and Pearl City regions, up 42.4% and 76.5%, respectively. Condo sales were steady, with the largest increases in the Central and Pearl City regions, which rose 37% and 64.7%, respectively.

Active inventory increased islandwide. Notably, the number of condos in the $300,000 to $599,999 range skyrocketed 76.5% from a year ago. Single-family home inventory also increased most in Central, Diamond Head, Kailua, Kaneohe, Leeward, and North Shore — while condo inventory more than doubled for Diamond Head, Hawaii Kai and North Shore listings.

Prices remained steady, with many listings selling above the original asking price. Single-family home sales closed above asking in 31% of closings last month, compared to 29% last year. And condos that closed above asking accounted for 17% of sales, slightly down from 18% last year.

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

Sales volume data was up in October.

The number of single-family sales exploded in October — up 22.5% from October 2023 — from 213 last year, to 261 last month. Year-to-date, there have already been 2,362 SF homes closed — and with two months remaining in 2024, Oahu is tracking to exceed the total number of sales from 2023 — 2,560.

In addition to strong single-family sales volume, the pace of sales was under two weeks in Moanalua-Salt Lake, Wahiawa, Waipahu, Mililani and Hawaii Kai. The median days on the market, overall, was 16 days for SF, and 26 days for condos.

Condo sales increased 1.5% in October — from 399 a year ago, to 405 last month. Year-to-date, 3,795 condos have closed on the island, and tracking to exceed 4,573, the 2023 total sales figure.

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

In October, the median price of a single-family home held at $1,100,000, neck and neck with the MSP in October 2023.

Year-to-date, the single-family home MSP is $1,100,000 after the first 10 months of 2024, compared to $1,050,000 in 2023 — up 4.8%.

Condos are also up year-over-year and year-to-date. The condo MSP in October was $525,000 — up 1.9% from $515,000 in October 2023. YTD, the condo MSP is $510,000 — up 0.6% from $507,000 this time last year.

MARKET SPOTLIGHT

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.