O’ahu Home Sales Slow as Mortgage Rate Rises

byMalia L. Meenderman/last updatedOctober 11, 2023/instatistics

O’ahu Home Sales Slow as Mortgage Rate Rises

September sales volume down by double-digits, properties spend approximately three weeks on market

The latest resales data shared by the Honolulu Board of REALTORS®, the single-family home market on O’ahu has sustained a 12-month rolling average of more than 200 sales. In the previous month, 232 properties were sold, signaling a 16.5% year-over-year decrease. On the other hand, the condo market’s 12-month sales average dipped below 400 sales for the first time since January 2021, with 376 condos sold last month, marking a significant 24.2% decline in sales volume compared to September 2022.

Using data collected from its computerized Multiple Listing Service (MLS) system, the Board reported the following statistics:

Single-Family Home Resales

	Number of Sales	Median Sales Price
September 2023	232 -16.5%	$1,050,000 -4.5%
September 2022	278	$1,050,000

Condominium Resales

	Number of Sales	Median Sales Price
September 2023	376 -24.2%	$532,500 +6.0%
September 2022	496	$502,500

In September, the median sales price for single-family homes showed a 4.5% decrease compared to the previous year, settling at $1,050,000 by the end of the month. Conversely, condos experienced a 6.0% year-over-year increase, reaching a median sales price of $532,500.

Properties that were sold in September typically spent approximately three weeks on the market, with a median of 20 days for single-family homes and 21 days for condos.

About 9% of single-family home sales closed at the full asking price, while 38% sold above the original asking price. In the condo market, 22% of sales received the full asking price, and 20% of condo sales closed above the original asking price.

Sales of single-family homes in the $700,000 to $999,999 price range accounted for 36% of the month’s transactions, with the majority of these sales occurring in the ‘Ewa Plain area. In the condo market, sales volume increased at higher price points but decreased in more affordable price ranges. The $900,000 to $1,999,999 range was the only price point to experience an increase in sales, jumping by 31.0%. In contrast, condo sales in the $200,000 to $599,999 price range plummeted by 30.2%. Similarly, third-quarter condo sales in the $900,000 and above range increased by 3.9%, while sales in the $300,000 to $400,000 price range dropped by 25.6%.

New listing volume fell in both markets compared to a year ago, with a 7.6% decrease for single-family homes and a 14.1% decline for condos.

Active inventory displayed mixed trends at the end of the quarter, with single-family homes experiencing a slight year-over-year slump of 5.9%, while condos saw a modest increase of 4.6%. In the North Shore and ‘Ewa Plain regions, active inventory plunged by 46.7% and 17.6%, respectively. However, the Kāne’ohe region displayed a 25% increase, adding 10 more active single-family homes compared to the previous year. For condos, most regions reported higher active inventory compared to the previous year, except for Hawai’i Kai, North Shore, and the ‘Ewa Plain, which offered few units available at the end of September.

Malia‘s comments

O’ahu Home Sales Slow

“Elevated interest rates have significantly dampened home and condo sales. Sellers are reluctant to list their properties due to the prospect of acquiring new mortgages with substantially higher interest rates. Nevertheless, the prevalence of cash sales has contributed to a less pronounced drop in median sale prices.”

Please contact us to know more about the market and for avenues to buy or sell your property in these changing markets.