Competitive Conditions Ease as Oahu Home Sales Slow in July 2022

Competitive Conditions Ease as Oahu Home Sales Slow in July 2022

Single-family home and condo inventory ticks up

HONOLULU – (August 5, 2022) – Locations—Hawaii’s leading real estate firm published its Oahu Residential Real Estate Report for July 2022.

• The Oahu single-family home median price increased by 11 percent from a year ago to $1,108,000. The condo median price increased by six percent to $500,000. Even as market pressures moderate, median prices continue to rise—pushed up by strong demand and historically low inventory. 
• Single-family home sales fell by 24 percent from July 2021, while condo sales fell by 25 percent. Year-to-date, single-family home sales are now down 11 percent from last year, and condo sales are flattening, up just two percent. 
• Single-family homes were on the market for a median of 12 days in July, an increase of two days from a year ago. Condos were on the market for a median of 12 days, the same as a year ago. 
• Single-family home bid-ups eased in July, falling to 49.4 percent. Thirty-six and a half percent of condos sold in July were bid up over the listing price—slightly less than a year ago. Although the percentage of bid-ups fell in July, competitive conditions remain and point to continued rising prices. 
• Single-family home and condo inventory is increasing. At the end of July 2022, 609 single-family homes and 1,110 condos were on the market, an increase of 28 percent and six percent, respectively, from last year. 

“We’re seeing more signs of easing in the Oahu real estate market this summer, on the heels of last year’s supercharged market,” said Senior Vice President of Risk Management and Principal Broker for Locations John Connelley. “Changes in homebuyer sentiment and decreased open house traffic that began to emerge last spring are now showing up as slowing sales.”

Connelley also noted that even as the market moderates, competitive conditions are still present due to persistently low housing supply and strong buyer demand.

“While higher interest rates have affected purchasing power, there are some bright spots for buyers. For-sale inventory is increasing, and although prices are still rising, the rate of increase is not as sharp as it had been,” said Connelley.

“As we head into fall, we expect the convergence of factors like higher mortgage rates, inflation, recession fears, global unrest and supply chain disruption will continue to temper the market,” Connelley added. Locations recommends that homebuyers and sellers partner with an experienced Realtor®, as local markets perform differently.

Locations agents are able to serve their clients safely while complying with the State of Hawaii’s health and safety guidelines. Virtual meetings, home tours and open houses are also available.