Oahu Home Prices, Sales Up in February 2024

Oahu Home Prices, Sales Up in February 2024

Promising signs of housing market rebound ahead

HONOLULU – (March 6, 2024) – Locations—Hawaii’s leading real estate firm published its Oahu Residential Real Estate Report for February 2024.

• In February 2024, the median single-family home price increased by nine percent over the previous year to $1,072,500, while the median condo price increased by six percent to $510,000. Flat-to-slightly-rising price trends are expected to continue throughout this year. 
• Single-family home sales rose by five percent and condo sales rose by three percent compared to February 2023. Sales are settling into typical seasonal patterns, setting the stage for continued moderate sales growth in 2024. 
• At the end of February 2024, 645 single-family homes and 1,450 condos were available for sale—a 10 percent increase in homes and a 17 increase for condos from last year. For-sale inventory grew slightly in the last half of 2023 but remains at historically low levels. 
• There were 2.9 Months of Remaining Inventory (MRI) for single-family homes and 3.7 MRI for condos at the end of February 2024. This measure is relatively flat and still firmly in sellers’ market territory, underscoring low supply and strong demand in the Oahu market. 
• The median Days on Market (DOM) in February was 29 days for single-family homes and 36 days for condos. This measure is expected to decrease in the second and third quarters of this year, following usual seasonal trends. 
• In February 2024, 23.1 percent of single-family homes and 22.3 percent of condos sold were bid-up over the list price, about one in every four sales. Bid-ups are an indicator of competitive conditions and of strong demand.  

“For the second month in a row, there were moderate year-over-year increases in Oahu home prices and sales, indicating a steadily recovering market,” said Chief Operating Officer for Locations Chad Takesue. “Buyer demand is evident as we head into the spring and summer, and we expect a modest rise in prices and sales, provided borrowing rates remain relatively stable.”

In addition to affordability, the availability of for-sale inventory is another factor affecting the Oahu market. Although there were 15 percent more homes and condos for sale in February than a year ago, supply continues to fall short of demand. A six-month supply of homes for sale is considered a balanced market—one that doesn’t favor buyers or sellers—and at just 3.4 months of for-sale inventory remaining, Oahu is a sellers' market. The limited supply of housing contributes to the competitive market conditions in which about one in four buyers paid more than the list price in February 2024.

The availability of Oahu homes and condos for sale can vary greatly by market area. In February, single-family home inventory nearly doubled in West Honolulu, which extends from Kalihi to Salt Lake, and increased significantly in Makakilo, North Shore, Hawaii Kai and Pearl City-Aiea. Single-family home inventory was tightest in Mililani and East Oahu, between Kahala and Hawaii Kai. The number of condos for sale increased the most in Mililani and Pearl City-Aiea. For-sale condo inventory also increased in central Honolulu, including Makiki, Kapiolani and Moiliili. Inventory growth in Oahu’s largest condo markets, Ala Moana-Kakaako and Waikiki, was mostly flat.

Locations recommends that homebuyers and sellers partner with an experienced Realtor® to better understand the performance of their specific neighborhood market.