Sales of O`ahu Homes Return to Pre-Pandemic Levels
Median sales price for condos dips to under $500,000
According to resales figures released today by the Honolulu Board of REALTORS®, more than 300 single-family homes and more than 500 condos sold in August, which is near pre-pandemic annual average closed sales per month for single-family homes and above average for condos. Median sales prices remained on pace with recent months, with August's single-family home median sales price rising 7.2% year-over-year to $1,125,500 and the condo median sales price marking a nominal decline of 0.3% to $498,500.
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 | |
|---|---|---|
| August 2022 | 314 -26.1% | $1,125,500 +7.2% |
| August 2021 | 425 | $1,050,000 |
Condominium Resales
| Number of Sales | Median Sales Price | |
|---|---|---|
| August 2022 | 508 -24.7% | $498,500 -0.3% |
| August 2021 | 675 | $500,000 |
“As market activity continues to slow with the rise in interest rates, it's important for buyers to remember that homeownership is still possible,” said Chad Takesue, president of the Honolulu Board of REALTORS®. “More than 250 properties on O`ahu, most of which were condos, sold for under $500,000 last month.”
While new listings fell 17.2% for single-family homes and 15.7% for condos, active inventory increased 43.3% for single-family homes and 12.9% for condos, though this lags behind prepandemic levels. A larger share of new listings remained active at the end of the month - 61% compared to 46% last August for single-family homes and 59% compared to 48% for condos - which is another indication of the cooling market. In both markets, properties that sold in August were on the market for a median of 13 days.
Nearly half - 48.7% - of single-family home sales closed below the original asking price compared to 22.8% a year ago. By the end of August, 13% of the newly listed properties had undergone a price reduction, compared to 4% in August 2021. Of the total active inventory at the end of the month, 38% of single-family homes had experienced a price reduction at some point since being listed, compared to 19% of the active inventory one year ago. The Ewa Plain region accounted for the most price reductions at 23%, followed by the Diamond Head region at 12%, the Metro region at 11%, and the Kailua region at 10%.
In the condo market, price reductions were not as frequent as in the single-family home market, with 8% of newly listed condos undergoing a price reduction by the end of the month compared to 3% last August. Of the active inventory, 34% had experienced a price reduction at some point compared to 21% of active inventory in August 2021.
“Following the frenzy we saw last year, sellers are working with their trusted REALTORS® to reevaluate how to price their homes as the market cools off. Our data indicate that fewer properties are selling at a premium, and price reductions are rising,” Takesue added.
Most regions across O`ahu experienced a dip in single-family home sales, but this was especially prevalent in the Kāne`ohe, where sales fell 57.8%, and in the Ewa Plain, sales dropped 35.2%. Only a few neighborhoods saw more single-family home sales than a year ago, including the Central, Hawai`i Kai, and Makakilo regions.
The condo market saw sales decline across all price points and in various neighborhoods. By sales volume, the Metro area was hit the hardest with a 28.8% decrease in sales compared to a year ago, followed by the Kāne`ohe region dropping 42.9%, the Central area dipping 25% and the Ewa Plains falling 16.9%.