Oahu Single-Family Home Median Price Hits New High in May 2022, Even as Market Shows Signs of Moderation

Oahu Single-Family Home Median Price Hits New High in May 2022, Even as Market Shows Signs of Moderation

Condo Market Becoming Increasingly Competitive

HONOLULU – (June 3, 2022) – Locations—Hawaii’s leading real estate firm published its Oahu Residential Real Estate Report for May 2022.

• The Oahu single-family home median price increased by 18 percent from a year ago to $1,153,500, while the condo median price increased by 14 percent to $520,000—record highs for both. 
• Single-family home sales fell by 16 percent from May 2021, while condo sales rose by 14 percent. Year-to-date, single-family home sales are down six percent from last year, while condo sales have increased by 13 percent so far this year. 
• Single-family homes were on the market for a median of 11 days in May, an increase of one day from a year ago. Condos were on the market for a median of 12 days, a decrease of one day from last year. 
• Bid-ups remained near record highs in May, with 60 percent of single-family homes and 46.2 percent of condos sold for above the asking price—an indicator of continued rising prices in 2022. 
• 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, rose by 18 percent to 1.3 months for single-family homes. Condo MRI fell by 32 percent to 1.6 months—the lowest in 16 years. 

“Even as the single-family home median price hit a new high in May, we’re beginning to see some signs that the market is moderating,” said Senior Vice President of Risk Management and Principal Broker for Locations John Connelley, who pointed to four consecutive months of falling sales and a slight increase in inventory for single-family homes. “Competition is still stiff, however, with low Days on Market and high bid-ups,” he added. Connelley also noted that home sales surged in 2021, so while single-family home sales have been below last year’s levels for most of this year, they are higher than previous years.

“The condo market has become increasingly competitive as demand for more accessible price points has ramped up,” Connelley said, noting that with nearly one-third fewer condos for sale than a year ago, more than four in 10 condos were sold for above the list price in May.

“Relatively higher mortgage rates will help to temper our aggressive market conditions, as entry-level buyers may have more difficulty competing for homes,” said Connelley. “However, since demand for Oahu housing comes from so many directions, it’s unlikely that we'll see much of an effect from higher rates.”

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.