Wow, it’s sure been an interesting week of headlines! In the past month, our nation’s leaders continue to focus on partisan theatrics and seem to be ignoring some of the most important issues affecting our country and the world. What impact has this had on the Oahu real estate market?
We continue to see a strong single-family home market with a record high median price of $880,000 and record low days on market at just 9 days in September! Even though interest rates have ticked up a bit, buyers not as impacted by the pandemic induced economic conditions are still trying to take advantage of the low rates in this very low inventory market.
The Condo market is stable, and some of the negative trends we’ve been seeing have leveled off a bit, for now. Condo prices are stable as inventory and demand have fallen at proportionate rates. There are still some weak submarkets, especially in lower price bands and certain geographic areas.
General economic conditions remain uncertain as our national leaders seem to be at an impasse on any new economic stimulus legislation until after the election. Even with travel restrictions easing in mid-October, The University of Hawaii Economic Research Organization is forecasting slight declines in home values for a couple of years as the Covid-19 related economic slowdown creates higher supply of homes and weaker demand.
Honolulu Board Of Realtors Executive Summary
The summer season ended on a high note with closed sales of single-family homes surpassing year-over-year activity by 12.7%, while condo sales marked a steady month-over-month improvement of 11.5%. Dynamic activity in Oahu’s single-family home market drove the median sales price to a record of $880,000 and properties are spending a record-low of just nine days on the market.
Sales of single-family homes under $700,000 dropped 36.3%, while homes priced in the $700,000 to $1,499,999 range drove the most activity with 74 more sales or an increase of 39.4% compared to this time last year. Closed sales of homes in the $1.5 million and above range saw a 42.9% year-over-year increase. Notably, closed sales of larger homes with more than 2,000 square feet in interior space saw a 37.9% year-over-year increase. Meanwhile, there is a 26.1% surge in purchasing activity backed by VA loans compared to this time last year.
The condo market fell just shy of maintaining year-over-year activity by 2.1% or about 10 fewer sales. Properties listed in $400,000 to $499,999 and the $600,000 to $699,999 price ranges marked the most activity. The median price for condos held steady at $445,000, though condos sold faster than this time last year with properties spending a median of 21 days instead of 27 days on the market. Closed condos sales also saw a 34.7% uptick in purchasing activity backed by VA loans compared to last September.
The number of single-family home sales closing over the original asking price more than doubled compared to this time last year with 163 sales versus 79 sales. Condos also saw a boost in properties selling above the asking price, with 82 closed sales this year compared to 62 in 2019.
As the market shifts into the fall season, inventory of available single-family homes and condos are down 39.3% and 5.8%, respectively, compared to this time last year. The drop in single-family home inventory is due to fewer new listings entering the market, paired with high demand and strong sales in the third quarter. While the condo market is also suffering from a lack of new listings, the decline in listings has not been as sharp compared to single-family homes. Although condo demand has grown steadily from the second quarter, sales were down 13.4% in the third quarter compared to last year.
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.