Condos Outperform Single-Family Home Sales Following Seasonal Lull
Sparse inventory, sustained demand drives new record single-family home median price at $1,125,000
According to resales figures released today by the Honolulu Board of REALTORS®, the single-family home market continues to lag behind condos in sales, with single-family home sales falling 7.3% compared to last February, while condo sales were up 9.0% year-over-year. Sparse inventory and sustained demand drove the median single-family home price to a new record high of $1,125,000, up 22.6% from this time last year and 7.1% higher than the previous record of $1,050,000 set in August 2021. The condo market saw a modest bump in the median sales price of $497,000, rising 8.6% from one year earlier.
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 | |
|---|---|---|
| February 2022 | 241 -7.3% | $1,125,000 +22.6% |
| February 2021 | 260 | $917,500 |
Condominium Resales
| Number of Sales | Median Sales Price | |
|---|---|---|
| February 2022 | 486 +9.0% | $497,000 +8.6% |
| February 2021 | 446 | $457,500 |
Closed sales through the first two months of 2022 remain ahead of last year, increasing 2.9% for single-family homes and 23.9% for condos. Single-family homes in the $899,999 and below range saw the largest decline with a 54.0% drop compared to this time last year. On the other hand, condos continued to mark strong sales volume for the 15th month in a row with positive year-over-year sales growth, with properties sold at $500,000 and above accounting for most of the sales increases up 28.2%.
“We saw a typical dip in sales in January to February of this year, which we attribute to muted activity around the holiday season,” said Chad Takesue, president, Honolulu Board of REALTORS®. “Along with rising median sales prices for both markets, median list prices are also starting to tick up as sellers take advantage of the lack of competition.”
$1,150,000, jumping 27.1% compared to $905,000 in February 2021. Single-family homes also saw 55.2% of sales close above the original asking price, with most over-asking deals occurring in the $800,000 to $999,999 price range. The condo market experienced a similar trend, with 37.0% of condo sales closing above the original asking price, with the majority occurring in the $400,000 to $699,999 range.
In both markets, properties sold last month were on the market for a median of approximately two weeks or 13 days for single-family homes and 14 days for condos. The market welcomed an increase in new listings throughout the month, with 14.0% more single-family homes and 18.6% more condos listed than a year ago.
“Lack of inventory continues to be our number one challenge of getting families into homes. Active inventory remains significantly below pre-pandemic levels, making it a challenging and competitive environment for prospective buyers,” added Takesue.
From a neighborhood perspective, new listings of single-family homes increased most prevalently in the Hawai‘i Kai, Ewa Plain, and Kailua regions, increasing 150%, 50.0%, 44.0%, respectively. Condos in the Metro area recorded the most significant jump in new listings, up 25.8%, while the Central region experienced a 28.9% drop in new condo listings.
Pending sales for single-family homes declined by 13.4% as fewer homes went into contract than last year, coupled with the total inventory in escrow dropping by 22.0% year-over-year. Meanwhile, pending sales of condos continued to see gains in February, with 12.4% more listings entering contract than last year, particularly in the Metro, Leeward, and North Shore regions.