O‘ahu Real Estate Market Update

O‘ahu Real Estate Market Update: Single-Family Home Sales Surge in July Amid Mixed Condo Performance

In July, O‘ahu's real estate market saw a significant increase in single-family home sales, while condo sales experienced a modest decline. Single-family home sales surged by 20.1% year-over-year, climbing from 224 sales in July 2023 to 269 sales this year. However, condo sales dropped by 7.8%, from 422 sales last year to 389 this July. Despite this mixed performance, both markets saw a slight month-over-month improvement, with single-family home sales up by 4.3% and condo sales rising by 9.6%.

Price Growth and Market Trends

Median sales prices also trended upward, with the median price for single-family homes increasing by 4.6% to $1,140,000. Condos saw a more modest gain, with the median price rising 1.8% to $509,000. However, fewer properties closed above their original asking prices compared to last year. In July 2024, 29% of single-family homes and 15% of condos sold for more than their asking prices, down from 36% and 25%, respectively, in July 2023.

Market Dynamics and Inventory

“While year-over-year sales are mixed, we saw activity in both single-family home and condo sales pick up in July, which is typical for this time of year," said Fran Gendrano, president of the Honolulu Board of REALTORS®. "Demand and median sales prices are continuing to hold steady, particularly in the single-family home market, despite an uptick in active inventory. We're closely monitoring the interest rate, condo insurance, and new practices and policies that could affect our market, but it will take some time to see any impact. The best thing buyers and sellers can do to stay informed is to work with a REALTOR®, who can help them navigate the market.”

The pace of sales for single-family homes remained consistent, with properties spending a median of 15 days on the market, slightly faster than the 16 days recorded in July 2023. In contrast, the condo market experienced a slowdown, with the median days on market nearly doubling from 16 days last year to 30 days in July 2024.

Increase in Listings and Active Inventory

July also saw a surge in new listings across both markets. Single-family home listings increased by 32.0%, with 363 new homes hitting the market, while condo listings grew by 29.8%, with 676 new units. Notably, single-family homes in the $600,000 to $999,999 range saw a 32.7% increase in listings, while homes priced at $1,000,000 and above grew by 36.5%. In the condo market, listings in the $300,000 to $599,999 range accounted for nearly half of the new inventory, experiencing a significant year-over-year boost of 41.3%. The $700,000 to $1,999,999 price range also saw a substantial increase, with listings up by 53.4%.

Active inventory continued to build in both markets. Single-family home inventory grew by 10.6% month-over-month, with 722 active listings at the end of July, while condo inventory saw an 8% increase, reaching 1,867 active listings. Compared to a year ago, active inventory was up 22.2% for single-family homes and a striking 61.8% for condos, with every region on the island offering buyers more options. The most significant growth in inventory was in the $300,000 to $499,999 condo price range, where active listings more than doubled to 593 units compared to last year.

The growth in active inventory, coupled with increasing prices and mixed sales performance, highlights the complexities of O‘ahu's real estate market. As interest rates, insurance issues, and other market factors continue to evolve, buyers and sellers are encouraged to stay informed and work with professionals to make well-informed decisions.

Conclusion

In summary, July's real estate market on O‘ahu demonstrated a notable increase in single-family home sales, reflecting robust demand in this sector. Meanwhile, the condo market experienced a slight dip in sales, though it saw some month-over-month improvement. The rise in median prices and a surge in new listings indicate an evolving market with growing inventory across both property types. As active inventory builds and market dynamics shift, it's essential for buyers and sellers to remain vigilant and seek guidance from real estate professionals to navigate these changes effectively. The ongoing monitoring of interest rates and market policies will also be crucial in shaping future trends.