O‘ahu’s Housing Market Rebounds with Year-End Spike in Activity

Record-low mortgage rates and low inventory drive heightened competition and modest increase in median sales prices for O‘ahu’s real estate market in 2020

Closed sales of single-family homes on O‘ahu were up 35.9%, and condo sales rose by 20.1% compared to the same period in 2019. New listings increased by 15.3% and 3.6% year-over-year for single-family homes and condos, respectively. Median sales prices for December 2020 were up 6.1% at $870,000 for single-family homes and 6.9% to $455,000 for condos.

“Instead of the typical seasonal lull, the O‘ahu real estate market saw steady – and even slight increases – in activity through the year’s end despite the ongoing effects of the pandemic,” said Shannon Heaven, president, Honolulu Board of REALTORS®. “Record-low mortgage rates paired with cautious optimism around reopening continued to drive activity, allowing the market to surpass sales and near new listing levels compared to the fourth quarter of 2019.”

Total annual single-family home sales were up 2.3% over 2019, but condo sales remained down, declining 13.0%. Increased purchasing power from lower mortgage rates and heightened competition spurred by low inventory resulted in annual median sales price increases of 5.2% to $830,000 for single-family homes and 2.4% to $435,000 for condos. Total new listings were down by 17.7% for single-family homes and 14.4% for condos compared to 2019.

O‘ahu’s Housing Market Holds Strong Despite Limited Inventory

Overbidding and low inventory drive ultra-competitive market amid ongoing pandemic

Closed sales of single-family homes on O‘ahu increased 5.6% and remained relatively steady from last month, while condo sales decreased 6.2% compared to this same period the previous year. Year-to-date, single-family home sales are almost back on track with 2019 activity and were down just 0.7%. Meanwhile, the condo market is struggling to recover to pre-pandemic levels and remained down by a double-digit percentage of 15.8%.

The number of single-family homes and condos sold above the original asking price skyrocketed 210.2% and 79.2%, respectively, compared to this time last year. Sales in both markets continue to move quickly, with single-family homes and condos spending a median of 10 and 16 days on the market, respectively.

“This seemingly new normal of buyers entering bids tens of thousands of dollars over asking price clearly reflects the urgent need for more housing,” said Tricia Nekota, president, Honolulu Board of REALTORS^®. “Despite limited inventory, the high demand for housing is keeping O‘ahu’s real estate market strong and steady throughout the public health crisis.”

O‘ahu Single-Family Home Market Drives Activity Breaking Two Records

Single-family home market marks new record and steady recovery,
while condos continue to trail 2019 activity

O‘ahu’s single-family home market continues to make a steady recovery, the summer season ended on a high note with closed sales of single-family homes surpassing year-over-year activity by 12.7%, while condo sales marked a steady month-over-month improvement of 11.5%. Dynamic activity in O‘ahu’s single-family home market drove the median sales price to a record of $880,000 and properties are spending a record-low of just nine days on the market.

“The spike in demand for single-family homes may correlate to buyers’ pursuing a different quality of life and a new environment following the sharp shift in people working from home,” said Tricia Nekota, president, Honolulu Board of REALTORS^®. “Ultimately, the COVID-19 pandemic has changed how buyers think about purchasing a home, causing them to reevaluate their housing goals and priorities.”

O‘ahu’s Housing Market Continues to Slowly Recover

Month-over-month sales and new listings up, market activity still trails 2019 levels

“We are seeing signs of increased activity driven by eager buyers looking to take advantage of record-low interest rates coupled with sellers who are slowly wading back in to put their properties on the market. This real estate activity indicates confidence in our local housing market and contributes to the recovery of Hawai‘i’s economy,” said Tricia Nekota, president, Honolulu Board of REALTORS^®. “With low inventory and continued declines in new listings, REALTORS^® serve as a trusted partner to help buyers navigate this highly competitive market, where many properties are experiencing multiple offers that are well above the asking price. REALTORS^® also work closely with sellers to manage high demand and multiple offers,” added Nekota.