O'ahu Home Sales Cool Amid Rising Mortgage Rates, Seasonal Slowdown

According to resale figures released today by the Honolulu Board of REALTORS®, sales volume remained stable in October, with both single-family homes and condos experiencing moderate year-over-year declines of 4.1% and 8.3%, respectively. The median sales price for single-family homes in October increased 4.8% to $1,100,000 while condos experienced a minor 1.0% decrease, ending the month at $515,000.

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
October 2023 213  -4.1% $1,100,100  +4.8%
October 2022 222 $1,050,000

Condominium Resales

Number of Sales Median Sales Price
October 2023 399  -8.3% $515,000  -1.0%
October 2022 435 $520,000

Compared to the previous month, sales of single-family homes dipped by 8.2%, while condo sales showed an increase of 6.1%. Year-to-date, sales in both markets declined approximately 29%, with single-family home median prices down 5.1% to $1,050,000 and condo median prices slipping 0.6% to $507,000.

Month-over-month, pending sales volume fell by 17.2% for single-family homes and 12.4% for condos. Year-over-year, pending sales volume experienced a modest decrease of 3.0% for single-family homes and 5.0% for condos.

“From September to October, we saw fewer buyers and sellers sign contracts, which may be the result of higher interest rates and the start of the standard shift in seasonal activity,” said Fran Villarmia-Kahawai, president of the Honolulu Board of REALTORS®. “We typically see real estate activity slow toward the end of the year as people focus on the holidays and spending time with family.”

Both single-family homes and condos saw a decline in properties closing at their full asking price or more. For single-family homes, 43% of sales (91 properties) closed at or above the asking price, down from 50% (111 properties) in October 2022. For condos, 38% of sales (151 condos) closed at or above the asking price, down from 48% of sales (208 condos) in October 2022. Most regions in the condo market ended the month with a median sales-to-original-list-price ratio of 100.0% or higher, while only the Kailua and Diamond Head regions did in the single-family home market.

In total, 187 properties—the majority were condos—sold for under $500,000. Sales volume for single-family homes in the $800,000-$999,999 range dipped by 25.6% to 29 sales, while those priced over $1,000,000 increased slightly to 127 closings, up from 122 in October 2022. In the condo market, units priced between $500,000 and $599,999 surged by 44.7% year-over-year to 68 sales, whereas condos in the $600,000-$699,999 range saw the most significant decline, with sales falling 27.1% to 35 units compared to 48 in the previous year.

“Navigating today's real estate landscape, whether buying or selling a home, can be complex. Partnering with a dedicated REALTOR® who comprehends its nuances ensures you can put your best foot forward in this ever-evolving landscape,” added Villarmia-Kahawai.

However, median days on the market for single-family homes and condos remained under 30 days, with single-family homes at 18 days and condos at 21 days, compared to 19 days each in October 2022. In the single-family home market, regions with a median above 30 days on the market included Leeward (41), Hawai'i Kai (38), Makakilo (34) and Waipahu (32). For condos, only Leeward and the North Shore had a median above 30 days, at 38 and 37 days, respectively.

Both markets witnessed a rise in active inventory from September, with a month-over-month increase of 5.7% for single-family homes and 9.4% for condos. New listing volume showed mixed results for the month, with the single-family home market seeing a 4.6% decrease to 272 new listings compared to 285 in October 2022. In contrast, new listing volume in the condo market grew by 6.4%, reaching 566 new listings in October compared to 532 a year ago.