Mortgage rates improved in November 2023. Locations expects to see rates drop below 7% in 2024, offering prospective buyers some much-needed relief. Looking ahead to 2024, stronger sales activity is anticipated as mortgage rates cool. A modest increase in inventory is possible if lower rates bring more sellers to the market. As rates come down, home prices are likely to rise.

In the October 2023 interest rate environment, it’s important to keep in mind that the Oahu real estate market is stronger now than it was in the years leading up to the pandemic. Although both homebuyer and seller activity have been dampened somewhat by higher mortgage rates and recent increases in home prices, Oahu is still a competitive market due to low housing supply and broad, high demand.

Locations Lead Research Analyst John Jacobson shares five charts that show what’s happening in the Kaka’ako real estate market in Fall 2023.

As we head into the last quarter of year, the Oahu real estate market continues to move at a steady pace. Oahu for-sale inventory is holding flat, while new inventory is still lagging. Market trends throughout the summer and into fall continue to point to competitive conditions for buyers.