Oahu’s housing demand remains high in August

Inventory is up, offering more choices for buyers across the island. And on top of more active inventory, comes more new listings, along with steady prices, and is breathing renewed enthusiasm among buyers.

In August, the Honolulu Board of Realtors® reported condominium inventory increased more than 50% over the past two years, with the most spikes occurring in one- and two-bedroom units. During the same two-year period, average monthly maintenance fees increased 11% as to meet rising condo operating expenses and insurance rates.

“While the average monthly maintenance fees and costs vary building-by-building, fees are on the rise for most condo associations,” says Mike James, president of Coldwell Banker Realty. “Buyers, however, should understand that while insurance costs have pushed up condo maintenance fees, the same insurance costs apply to single-family home coverages as well — which are less visible, initially.”

In the condo market, specifically, many neighborhoods offered more than twice the listings than a year ago. The most significant jump occurred in the $300,000 to $599,999 price range, which more than doubled, compared to last year, from 419 active condo listings in 2023, to 847 this year.

Single-family inventory and listings were also higher. Most of the single-family inventory was in the Diamond Head, Ewa Plain, Leeward, and Metro regions, accounting for more than 50% of the active SF home listings. However, buyers will find plenty of new single-family listings last island wide.

While prices were up slightly in the single-family home segment, and down slightly in the condo segment, homes and condos were still selling for above the original asking price. In August, 30% of the SF home sales sold for more than the original asking price. The condo segment recorded 15% of last month’s sales closing above the original asking price — indicating in both segments, demand and competition remain high across the board.

One final note on condo sales: Most condos took 20 days or more to secure offers. But for units in Kailua-Waimanalo, Hawaii Kai, North Shore, and Pearl City-Aiea, condo median days on the market was less than two weeks.

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

August sales volume data tallied up to be very close to August 2023 numbers. The number of single-family homes that closed on Oahu last month was 253, up 0.4% from August 2023, when 252 homes sold. Single-family home sales in the Ewa Plain and Hawaii Kai experienced the largest volume growth, up 52% and 117%, respectively, compared to last year from the latest HBR data.

Condo sales were nearly neck-and-neck as well. Last month, 401 condo units sold on Oahu, compared to 422 sales during the same period last year — a slight 5% decline. Ala Moana–Kakaako, and Waikiki neighborhood sales bumped up 15% and 12% year-over-year, respectively.

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

In August, the median price of a single-family home increased by 1.1% to $1,122,000 from $1,110,000 in August 2023. The median price of a condo in August fell by 2.9% to $500,000 from $515,000 in 2023.

CHART OF THE MONTH
Source: Honolulu Board of REALTORS®, compiled from MLS data

Despite mortgage rates, insurance rates, and variety of economic circumstances affecting our local market, prices have remained steady for two years — a testament to the stability of island housing.

MARKET SPOTLIGHT
Source: Honolulu Board of REALTORS®, compiled from MLS data

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.