O'ahu Home Sales Dip Amid Rising Borrowing Costs
Active inventory and days on market increase as sales volume continues to decline
According to resale figures released today by the Honolulu Board of REALTORS®, both single-family homes and condos experienced a slump in sales as elevated borrowing costs continued to dampen summer buying activity. Single-family home sales fell by 28.2%, and condo sales dropped by 18.5% compared to the same time last year. In both markets, properties that sold in July spent a median of 16 days on the market, just a slight jump up from July 2022, where single-family homes had a median of 11 days and condos had 12 days.
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 | |
|---|---|---|
| July 2023 | 224 -28.2% | $1,090,000 -1.6% |
| July 2022 | 312 | $1,107,944 |
Condominium Resales
| Number of Sales | Median Sales Price | |
|---|---|---|
| July 2023 | 422 -18.5% | $500,000 0.0% |
| July 2022 | 518 | $500,000 |
“While the market is different compared to last year, we're seeing similar trends month to month,” said Fran Villarmia-Kahawai, president of the Honolulu Board of REALTORS®. “Rising borrowing costs have buyers taking a more cautious approach, so homes remain on the market for longer periods, but demand and median sales prices are holding steady due to low inventory.”
Median sales prices were stable year-over-year, with single-family homes down 1.6% to $1,090,000 and condos even at $500,000. Approximately 53% of single-family home sales closed for the full asking price or more, compared to 65% a year ago. In the condo market, 47% of sales received the total asking price or more compared to 60% of sales in July 2022.
“The best thing you can do if you’re interested in buying or selling is to work with a REALTOR® who is not only committed to helping you achieve your real estate goals but understands the nuances of the market and the complexities of a real estate transaction,” added Villarmia-Kahawai.
The market also experienced a decline in new listings, with a 28.8% year-over-year drop for single-family homes and a 15.4% fall for condos. However, active inventory for single-family homes and condos remained relatively unchanged from the previous year, with a modest 2.6% growth in active single-family home listings and 9.9% in active condo listings.
Despite a weakening in contract signings from a year ago, July 2023 saw a 6.9% month-over-month hike for single-family homes and a 1.4% bump for condos. There were 247 pending sales for single-family homes and 421 for condos during the month. Notably, Ewa Plain, Waipahu, and Pearl City saw increased contract signings for single-family homes, with growth rates of 18.5%, 18.8%, and 13.3%, respectively. The Leeward region stood out for condos, experiencing a significant 92.3% boost in contract signings year-over-year. Ewa Plain condo pending sales remained steady year-over-year but rose by 38.2% from June to July.