Luxury home sales drive Oahu’s MSP to new record high

The luxury home market shot the single-family home median sales price to a new record high last month — to $1,150,000 — up 21.1% from last year and 2.2% higher than the previous record of $1,125,000 set only a month ago.

A 56.3% plunge in sales for single-family home listings below $899,999 last month combined with a 25% increase in the number of luxury homes priced at $2 million-plus is part of months-long trend.

In the condo market, sales in the $700,000 to $799,999 range recorded the highest volume increase, up 125.8%, with most of these sales occurring in the Metro and Ewa Plain regions.

Freddie Mac reports the 30-year fixed-rate mortgage rates averaged 4.67 percent (with an average of 0.8 points) for the week ending March 31. The expectation that interest rates may continue higher has, so far, had little effect on sales. Mike James, president of Coldwell Banker Realty reminds buyers that buying power is tied directly to interest rates — higher rates impact affordability.

However, the jury is still out regarding the effect rising rates may have, especially considering the low inventory.

Sales of Single-Family Homes and Condos | March 2022
Source: Honolulu Board of REALTORS^®, compiled from MLS data

Condominium sales volume was up for the 17th consecutive month in March. However, single-family home sales, which had gained in 14 of the last 17 months, were down in March by 11.1% — from 361 in March 2021 to 321 last month.

March condo sales outpaced March 2021 sales by 7.3% — up from 626 to 672 last month.

Of note, new listings for single-family homes continue to lag. March data reports only 412 new listings, a 6.2% dip compared last year. However, faced with reduced inventory, buyers scooped up available properties quickly — nearly 56% of those new March listings were in escrow or sold by the end of the month.

New listings for condos were on pace with 2021  — with 714 new units listed in March compared to 715 new listings last year.

Median Sales Price of Single-Family Homes and Condos | March 2022
Source: Honolulu Board of REALTORS^®, compiled from MLS data

The first quarter of 2022 closed out March with new record median sales prices for single-family homes and condos at $1,150,000 and $515,500, respectively.

The Oahu SF median sales price gained 21.1% annually — up from $950,000 and 2.2% above the previous record high.

At $515,500, the condo MSP represents a 14.3% bump up compared to March 2021 when the reported MSP of $451,000, and a 1.1% increase from the previous record high of $510,000, set this past January.

For the first quarter of 2022, 58% of single-family homes sold above the original asking price, up slightly from 52% in the first quarter 2021. Similarly, nearly 42% of condos sold above the original list price compared to 29% in the same timeframe last year.

Overall, the percentage of sales amounts over the original list price increased — up from 100% in March 2021 to 102% in single-family homes last month, and up from 99.1% in March 2021 to 100.0% in condos last month.

NEIGHBORHOOD MARKET STANDOUTS

While prices continue to rise, even in neighborhoods typically considered more affordable, there are properties on Oahu where prospective buyers can find prices that remain within reach.

Below is the February  2022 median sales price data for neighborhoods where SF prices are available below MSP of $1 million and condos below $500,000.

To find out the MSP for your neighborhood, ask your Coldwell Banker Realtor®.

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