Oahu Real Estate Market Softened but Still Competitive in November 2022

Oahu Real Estate Market Softened but Still Competitive in November 2022

Single-Family Home Inventory More Than Doubled from a Year Ago

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

• The Oahu single-family home median price increased by six percent from a year ago to $1,100,000. The condo median price dipped by four percent from last year to $480,000. Median prices in 2022 are still higher than last year but leveling off. 
• Single-family home sales fell by 44 percent from November 2021, while condo sales declined by 43 percent. Year-to-date, single-family home sales are down 21 percent and condo sales are down nine percent. 
• Both single-family homes and condos were on the market for a median of 19 days—seven days longer than a year ago for homes and nine days longer for condos. 
• Competitive conditions remain, but have softened since last year’s surge. Nearly 38 percent of single-family homes were bid up over the asking price in November, down 37 percent from a year ago, while 24.5 percent for condos were bid up—a decrease of 41 percent from a year ago. Competition for Oahu homes is expected to continue into the new year, but could lessen slightly. 
• Months of Remaining Inventory is rising, at 2.4 months for both single-family homes and condos. However, housing supply remains historically low, suggesting the sellers’ market will continue. 

“Despite rising inventory, Oahu home sales were down last month compared to a year ago,” said Senior Vice President of Risk Management and Principal Broker for Locations John Connelley. “Higher mortgage interest rates and record inflation are contributing to a pullback by homebuyers and sellers. However, there are still many people who can’t—or don’t want to—delay a home purchase, so competitive conditions, although softened, remain the norm.”

“While the single-family home median price is slightly higher than a year ago, the condo median price fell below 2021 levels for the first time in November. We expect to see median prices level off as we head into the new year,” said Connelley. About one in four homes and condos sold in November had at least one price reduction.

“Even though some buyers face affordability challenges and continued competition, particularly in entry- and mid-level price ranges, the good news is that inventory is rising,” added Connelley. “In the single-family home market, where Months of Remaining Inventory dropped to less than one month last year, housing supply has now more than doubled. Condo inventory has a way to go to get back to 2020 levels, but it has been steadily rising for the past six months and is expected to stay the course.”

Locations recommends that homebuyers and sellers partner with an experienced Realtor®, as local markets perform differently.