Last month I mentioned there was a pretty interesting week of headlines just before the October report. Since then, the whole month has been filled with even more interesting headlines and election drama! Now that the elections are over, or mostly…maybe over, I’m hoping our elected officials can get back to the business of running the country and getting the economy on track. So what happened to the Oahu real estate market while everyone was focused on the elections?
The single-family home market continues to see low inventory as a restraining factor. While keeping upward pressure on prices, the lack of inventory is negatively impacting sales volume. Multiple buyers are competing for the limited number of homes, as seen in the increased number of homes selling over list price. Unsuccessful buyers in these bidding wars are the unrealized closed sales waiting to happen.
The condo market continues to stabilize for now. Reduced travel restrictions should bring investors back and local buyers are going back to work. It’s too early to call it a trend, especially with the end of the eviction moratorium looming in the future.
The fundamentals of our market are strong and interest rates should remain low for some time. Even though there’s a lot of Uncertainty with a smooth government transition, increasing Covid cases, and likely no government stimulus package any time soon, the Oahu real estate market should remain strong and be more active than we normally see heading into the holidays and end of the year. It could be a rough start in 2021 if Covid cases aren’t under control, there’s no stimulus package, and the eviction moratorium is lifted.
HONOLULU BOARD OF REALTORS EXECUTIVE SUMMARY
O‘ahu single-family home sales dropped by 0.6%, while condo sales marked a 1.7% increase compared to the same period last year. The modest jump in sales activity is the first year-overyear sales increase for the condo market since January.
The median sales price for single-family homes was up 10.9% at $865,000 compared to last year, slightly less than last month’s record-setting median of $880,000. Single-family homes that sold last month spent a median of 10 days on market. New listings were down 17.6% compared to October 2019, but marginally higher than September 2020 at 3.3%.
The greatest shift in single-family home sales occurred in the $600,000 to $699,999 price range, with a 56.8% decrease in sales and a 52.3% drop in new listings compared to last October. The most sales increases occurred in the $800,000 to $1,199,999 range, with sales up 39.2%. Over 50% of the sales that occurred above asking price were in the $700,000 to $899,999 price range.
In addition to seeing year-over-year growth in sales, new condo listings also saw a small increase of 1.7% compared to last year. The largest increase in new listings, at 18.5%, occurred in the $500,000 to $599,999 price range. Condo sales in the $400,000 to $499,999 price range increased by 30.2% with 112 closed sales compared to 86 last year, while 63% of condos sold above asking price were in the $400,000 to $599,999 range. Condos spent a median of 18 days on market.
Yet another sign of the competitive market, the number of single-family homes sold above asking price more than doubled from last year, while the number of condos sold above asking price increased by 63.9%. Properties are spending a median of fewer than 20 days on market.
In accordance with Tier 2 of Mayor Caldwell’s Honolulu Recovery Framework, REALTORS® continue to host modified in-person open house showings, which are limited to no more than five people in a home at any given time. As an essential business, real estate remains open with modifications, and REALTORS® continue to serve the housing needs of their clients, buyers, sellers, and landlords while observing social distancing, wearing a mask and utilizing heightened sanitation practices.
To see the full report, click HERE. As always, a reminder that statistics vary by neighborhood, building, and price bands. If you have questions about your home, building, or neighborhood, please fee free to contact me.