Oahu Real Estate Market Ends 2022 with Falling Sales

Oahu Real Estate Market Ends 2022 with Falling Sales, Slower Price Growth

Competition continues to ease as housing inventory increases

HONOLULU – (Jan. 6, 2023) – Locations—Hawaii’s leading real estate firm published its Oahu Residential Real Estate Report for December 2022.

• The Oahu single-family home median price dropped by one percent from a year ago to $1,042,500—the first decline in 30 months. The condo median price increased by three percent from last year to $500,000. For the year, the single-family home median price finished up 11 percent higher than 2021, while the condo median price was up seven percent. 
• Single-family home sales fell by 42 percent from December 2021, while condo sales declined by 40 percent. Month-to-month, sales were up in December, following typical seasonal trends. 
• Single-family homes were on the market for a median of 26 days in December, the highest in 34 months and more than double a year ago. Condos sold in a median of 20 days—six days more than a year ago. 
• The market is still competitive, but has softened since its peak in 2021. In December, 31.9 percent of single-family homes and 23.5 percent of condos were sold for more than the list price, about half of last year’s levels. 
• Months of Remaining Inventory (MRI) continues to increase over last year, at 2.1 months for single-family homes and 2.3 months for condos. December 2022 marked the third consecutive month in which single-family home MRI exceeded 2020 levels. Condo MRI has been greater than 2021 levels for the past four months in a row; however, it remains well below 2020 levels. Housing supply remains historically low, suggesting the sellers’ market will continue. 

“While higher borrowing rates are presenting challenges for some buyers, home prices are beginning to level off and even decline in a few neighborhoods,” said Chief Operating Officer for Locations Chad Takesue. “We expect to see a further softening of the market this year, as buyer demand has tempered a bit in some neighborhood markets due to concerns about the economy or affordability attributed to the higher rates and prices,” said Takesue.

“Determined buyers who are still in the market for a new home will have more choices—and more time to weigh their decisions—than in recent years. They’ll also have greater bargaining power.”

“Despite easing competition, however, we’re still in a seller’s market,” said Takesue. “This year, sellers will need to price their homes conservatively and be prepared to make some concessions that they may not have had to consider a year ago.” Locations recommends that homebuyers and sellers partner with an experienced Realtor® to better understand the performance of their specific neighborhood market.