Oahu Real Estate Market Sees Steady, Continued Growth in October 2021

Oahu Real Estate Market Sees Steady, Continued Growth in October 2021

Median single-family home price at $1M for fourth consecutive month

HONOLULU – (Nov. 4, 2021) – Locations—Hawaii’s leading real estate firm published its Oahu Residential Real Estate Report for October 2021.

• The Oahu single-family home median price increased by 15 percent over last October to $1M, while the condo median price increased by 12 percent to $500,000. October 2021 marks the fourth consecutive month the median single-family home price has been at or above $1M and the second month ever that the condo median price has reached $500,000. 
• Single-family home sales increased by 10 percent over October 2020, while condo sales increased by 32 percent. However, sales are beginning to follow typical seasonal patterns, after peaking in the summer months. 
• Bid-ups remain at record highs, with 61 percent of single-family homes and 40 percent of condos sold for above the asking price in October. 
• 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, remain at record lows. MRI for single-family homes is at a record low of 1.1 months, while condo MRI is 1.9 months—the lowest in 16 years.

“As we head into late fall, we’re seeing some signs that the Oahu real estate market is beginning to ease—even as the single-family home median price remains at $1M for the fourth consecutive month,” said Senior Vice President of Risk Management and Principal Broker for Locations John Connelley. “As anyone shopping for a home could tell you, our market is still very competitive. However, sales now appear to be following typical seasonal trends, and the time from listing to escrow seems to have bottomed out—indicating a more sustainable market ahead.”

Still, the Oahu market has been more aggressive in 2021 than in recent years. The year-to-date single-family home median price is about 20 percent higher than last year, and the year-to-date condo median price is about ten percent higher. So far in 2021, combined single-family home and condo sales are 40 percent greater than 2020 sales and 25 percent greater than 2019 sales for the same period.

“Home sales are up as much as the lack of for-sale inventory allows,” Connelley said, noting that active inventory remains at historic lows, with only 432 homes and 1,099 condos for sale—a 25 percent decrease and 39 percent decrease, respectively, from a year ago.

Mortgage interest rates climbed to 3.14 percent in early November—near the high for the year, but still historically low.

“Mortgage rates will likely remain low for the next several months; however, an uptick in rates will help to ease pressure on rising prices,” 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.

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