Oahu Condo Sales Surged by 41 Percent in January 2022

Oahu Condo Sales Surged by 41 Percent in January  Condo median price hit record high of $510,000    

HONOLULU – (Feb. 4, 2022) Locations—Hawaii’s leading independent real estate firm—published its Oahu Residential Real Estate Report for January 2022.  

• Oahu single-family homes sold for a median price of $1,057,500 last month, an increase of 19 percent over January 2021. Condos sold for a median price of $510,000, an increase of 13 percent and a new record high.   
• Single-family home sales rose by 11 percent from January 2021, while condo sales rose by 41 percent.  
• Single-family homes were on the market for a median of 13 days in January, an increase of two days over last year. Condos were on the market for a median of 14 days, a decrease of three days.  
• Bid-ups remained near record highs in January, with 59.8 percent of single-family homes and 39.4 percent of condos sold for above the list price.  
•  Months of Remaining Inventory (MRI), or the number of months it would take for all existing listings to sell if no new listings were to become available, fell by 40 percent from last year to 0.9 months for single-family homes. Condo MRI dropped by 56 percent to 1.6 months. 

“Sales of existing condos were much higher last month than in a typical January,” said Senior Vice President of Risk Management and Principal Broker for Locations John Connelley. “Condo sales in Waikiki and Ala Moana-Kaka'ako were particularly strong—more than double the sales of a year ago.” 

“Single-family home inventory has declined steadily over the past two years, as we saw unprecedented buyer demand. The scarcity of homes and rising prices have led more buyers to purchase condos or townhomes, which are more plentiful than single-family homes and often more affordable,” Connelley added. 

Not only are fewer single-family homes and condos available for sale, but demand continues to increase, as evidenced by record-low Days on Market and competing offers. With competition for both single-family homes and condos at record highs, prices are likely to continue to rise in 2022. 

“The market continues to challenge homebuyers,” said Connelley. “However, we are seeing some encouraging signs for buyers; the frenzied pace of sales we saw last summer is returning to seasonal norms and the decline in active listings appears to be leveling off—though listings remain very low.”  

Mortgage interest rates rose in January to around 3.5 percent, the highest in three years. Rates are expected to remain low throughout the first half of the year before rising more later in the year. 

“Rising mortgage rates will help to ease pressure on our extremely competitive market,” Connelley said. “However, rate increases will also curb purchasing power—making affordability an even greater hurdle for first-time homebuyers. Home prices are unlikely to return to pre-pandemic levels, so homebuyers should act while rates remain under four percent and purchasing power is strong,” he 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.