Reflecting on the last year over a cup of coffee; our last monthly market update hits my inbox “Year over Year Single Family home sales plummeted 46.6% and condo sales were down 39.3%” – HBR December Monthly Update
THE SKY IS FALLING, the sky is falling! That is according to the first line of Oahu Housing market update by Honolulu Board of Realtors. Now the second line holds more information “The median sales price for a single-family home dipped slightly to $1,049,500, while the median condo sales price rose to $502,500.”
After reading the report in the entirety and having first hand knowledge and experience of what was happening in Oahu sales, here is what it all means for you:
Less Sales happened in December 2022 than December of 2021
Why? Simple – Interest Rates. In December of 2021 the average interest rate was 3.25% compared to December of 2022’s 6.61%. In real terms a million dollar mortgage payment with 5% down Conventional loan went from $4,517 in December 2021 to $6,155 in December 2022 – that is $1,638 increase on the same loan amount! The buyer pool has shrunk with increased interest rates. Basic Supply and Demand.
Prices are STABILIZING!
Goodness gracious we have been waiting for this! A market that allows for win-win scenarios for buyers and sellers. There was a $500 dip in the median sales price for single family homes. That is a 0.05% decrease. Almost unnoticeable. And then condo prices showed an increase of 3.6% for the median sale price. Take a sigh of relief, we are stabilizing.
Let’s talk market conditions, what are we seeing in deals right now.
Seller’s credits, which is great news for buyers. Cash in your pocket. Do not worry sellers, it’s not just good news for the buyers. Seller’s are not sweating the credits, they have record high equity! Active listings are averaging only 6 showings prior to going into Pending with an accepted offer with an average of 22 days on market!
Oahu’s market is still in the green
The year-end median price climbed to $1,105,000, an 11.6% increase compared to the 2021 annual median price of $990,000. The condo market ended the year with an annual median sales price of $510,000, up 7.4% from a year ago.
So with all the drama and large percentage increases it could have been summed up with one word… Stabilization.