Oahu Single-Family Home Sales Dip in February

Oahu Single-Family Home Sales Dip in February 

Home sales constrained by record-low inventory 

HONOLULU – (March 4, 2022) – Locations—Hawaii’s leading real estate firm published its Oahu Residential Real Estate Report for February 2022.  

• Oahu single-family homes sold for a median price of $1,140,000 last month—a new record and an increase of 24 percent from February 2021. Condos sold for a median price of $499,000, an increase of 10 percent.   
• Single-family home sales fell by 10 percent from February 2021, while condo sales rose by nine percent.  Single-family homes were on the market for a median of 13 days in February, an increase of two days over last year. Condos were on the market for a median of 14 days, a decrease of five days.  
• Bid-ups remained high in February, with 55.6 percent of single-family homes and 36.5 percent of condos sold for above the list price.  
• 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, fell by 21 percent from last year to one month for single-family homes. Condo MRI dropped by 53 percent to 1.7 months. By the end of February 2022, only 372 homes and 1,028 condos were available for sale, a decrease of seven percent for single-family homes and 28 percent for condos from last year. 

“Demand for single-family homes and condos remains well above last year’s levels,” said Senior Vice President of Risk Management and Principal Broker for Locations John Connelley. “It’s too soon to say whether global instability or concerns around inflation will affect Oahu homebuyers; however, with interest rates below four percent and limited inventory, we can expect seller’s market conditions to continue in 2022.”  

Connelley added that although the decline in for-sale single-family home and condo inventory has appeared to level off for now and is following typical seasonal trends, inventory remains at record-low levels.  “We saw fewer single-family home sales last month compared to the same time a year ago,” said Connelley.

“There were about 30 fewer homes on the market compared to February 2021, limiting the number of sales. The single-family home median price was 24 percent higher this February compared to last, and interest rates, though still historically low, were also slightly higher. Both the availability of single-family homes and the affordability of single-family homes affected sales last month.” 

Condo sales remained strong in February and are increasing at twice the pace of single-family home sales. Buoyed by lower prices, spill-over demand from the higher-priced single-family home market and twice as many new listings, the Oahu condo market is robust and stable. Competitive conditions will continue in the condo market throughout the year.  

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.