Single-family home MSP tops $1 million mark for the first time

For the fourth consecutive month, single-family homes set a record median reaching $1,050,000 in August — exceeding the million-dollar mark for the first time. Except for April, each month in 2021 has reached a new record median price.

Single-family million-dollar plus sales doubled in August, and year-to-date, $2 million and above SF sales have more than tripled.

Similarly, the August condo MSP reached a record $500,000 — a 16.3% MSP gain over last August. Notably, condo sales volume for listings $600,000 nearly tripled. For $800,000 and above, volume quadrupled compared to the previous year.

Faced with scant inventory and empowered by low mortgage interest rates and the associated lower monthly payments, buyers continue to propel prices to record highs. Correspondingly, with limited inventory in sub-MSP price ranges, sales activity in the lower-end market remains constricted.

For example, SF-home inventory dropped 83.3% in the $350,001 to $475,000 price range. Sales dropped 56.7% in the $475,001 to $550,000 range. Available listings between  $550,001 and $650,000 dropped 50%.

Nationally, there has been a turn in the market from “super heated”  to “still very strong,” according to Lawrence Yun, chief economist at the National Association of Realtors.

Kalama Kim, principal broker at Coldwell Banker Realty, adds, “Like the rest of the country, the local market may not be as robust as it was six months ago, however it is still extremely strong, illustrated by the recent stats released by the Honolulu Board of Realtors.”

Mike James, president of Coldwell Banker Realty, says, “We are starting to hear about buyer burn-out as they are tired of competing and losing to other buyers. However, showing inquiries per listing continues to be strong even during this slower time of year.”

Successful buyers understand decisions must be made quickly and to put in their best offer first. Single-family buyers have to be ready as the median number of days spent on the market is 40% less than from a year ago. Currently, SF homes spend only 9 days on the market before an offer is accepted. Similarly, condo sales are taking a median of 12 days on the market — quicker by 47.8% from August 2020. Last month, 64% of SF homes sold above the asking price, and 41% of condos closed above the original asking price.

“We’re in an unprecedented seller’s market, and it helps to work with a trusted Realtor® who has the expertise to navigate the home buying and selling process,” adds Shannon Heaven, president, Honolulu Board of Realtors®. “I always tell my buyers to be persistent, put your best foot forward, and you will find the home meant for you.”

Sales of Single-Family Homes and Condos | August 2021
Source: Honolulu Board of REALTORS^®, compiled from MLS data

In August, 425 single-family home sales closed, 14.9% more than August 2020 when 370 homes closed.

In August, the number of condo sales jumped 65% from a year ago, with 675 condos closed, compared to 409 closings a year ago.

Year-to-date, 2,972 single-family homes closed in eight months — a 26.8% increase over 2020. Condo stats are impressive as well  — up 67.9%, from 2,849 closings during the first eight months of 2020, to 4,783 during that period this year.

Median Sales Price of Single-Family Homes and Condos | August 2021
Source: Honolulu Board of REALTORS^®, compiled from MLS data

Single-family and condo median sales prices hit record highs in August — SF homes reaching $1,050,000 and condos at $500,000.

With the median sale price, half the homes sold closed higher, and half closed lower. The ongoing competition in affordable price ranges and the uptick of closed sales at higher price points in both segments continue to put upward pressure on the MSP.

“As we’ve seen all year, limited inventory paired with increased purchasing power due to near-record-low interest rates continue to drive sales prices in a fiercely competitive market,” says Heaven. “Despite the record-high median sales price, it’s important to note that the market varies tremendously from property type to price and neighborhood, so buyers shouldn’t feel discouraged by a single statistic.”

NEIGHBORHOOD MARKET STANDOUTS

With record-high median sales prices this month, and sales volume in the higher-end price points continuing, here are neighborhoods where SF homes are selling for $1 million and up, and condos, for more than $550,000 — year-to-date.

To see what the MSP is in your neighborhood, ask your Coldwell Banker Realtor^®.