Oahu home prices up 4.4%, up 3.5% nationwide

The cost of owning a home is on the rise, not only in Hawaii but across the nation as well.

As the National Association of Realtors® reported (fourth quarter 2024), existing single-family home prices across the country increased 3.5% on an annual basis to a national median price of $391,700. It was estimated that the cost of the monthly mortgage payment on that home increased by 10%.

On Oahu, the first-quarter data reported by the Honolulu Board of Realtors® shows that single-family home prices rose by 4.4%, and the condo median prices slightly increased by 1%. During the first three months of 2024, closed single-family home sales volume on the island increased by 6.1%, while condo sales decreased by 7.1%.

“With prices on the rise, these are definitely some challenging times to buy a home on Oahu, especially if it’s your first-time purchase,” says Mike James, president of Coldwell Banker Realty. “And there are hurdles to overcome even if you own a home with a mortgage in the 3% range and now want to upsize or downsize, with mortgage rates now in the 6%-to-7% range. But the recent decrease in rates from last summer is motivating some buyers to take action.”

In March, 280 single-family purchase contracts were “pending,” representing an 8.5% year-over-year increase.

Pending sales in the $800,000 to $999,999 range continued to mark a sizable share for SF homes, with 81 contract signings in March, growing 15.7 % year-over-year. Additionally, condos priced between $300,000 to $599,999, accounted for nearly 50% of pending condo sales last month.

Bidding wars continue to affect sales prices, as 23% of single-family home sales closed above the original asking price, compared to 24% last year. Condo sales closing above asking price decreased to 18% from 21% this time last year.

March inventory was up in both segments. Active inventory is up in single-family homes and condos in March — up 7.4% and 29.6%, respectively. First quarter data shows listings rose 9.7% and 16.2%, respectively. Inventory, particularly in the upper price ranges may be skewing these figures. In March, there was a 23.2% increase in the $1.6 million-and-up range listings, and a 9.2% increase in the $1 million to $1.5 million price sector.

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

Single-family home sales volume on Oahu was down 2.5% in March — from 236 in March 2023 to 230 last month. Condo sales volume also dropped 22.5% — from 444 closings a year ago, to 344 last month.

Despite lighter demand in March, overall first-quarter figures were more reassuring — first quarter single-family sales volume was up 6.1%. and condo volume was down 7.1%.

Condo sales volume was down 7.1% and dropped off significantly in two price ranges. Sales slumped 19.6% in condos priced between $400,000 and $499,999. And for condos priced at $1 million or more, sales volume was off by more than 30%.

Single-family home sales in the $1 million and up range were up 16.4% yet fell 5.2% for homes listed below the $1 million mark, according to the Honolulu Board of Realtors®.

Kailua-Waimanalo had the highest number of single-family sales in March, while Waikiki had the most condo sales.

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

First quarter median prices reached $1,070,000 for single-family homes and $505,000 for condos, a 4.4% and 1.0% year-over-year increase, respectively.

By comparison, last month, HBR reported that the median sales price for a single-family home to be $1,100,000 and $500,000 for condos, a 1.5% increase for SF, and a 6.7% decrease for condos.

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.