Oahu Real Estate Market Report for April 2022
Although mortgage interest rates have risen higher, home prices have remained steady due to continued strong demand from local and off-shore buyers. The demand for homes and condos is still outstripping the new supply coming on the market, with fewer active homes available now than a year ago. With the Oahu single-family home median price above $1M and mortgage rates greater than 5%, competition for condos and townhomes—which are typically priced lower than homes—has surged. There are 20 percent fewer condos for sale than a year ago, and more than four in 10 condos sold for above the list price in April—an increase of 38 percent from last year.
Oahu Single Family Home Market Stats
Single-family homes have seen a modest leveling out in the number of sales due to lack of inventory in April 2022 compared to the previous year. Despite this, the median sales price for single-family homes in April 2022 was at $1,105,000, up 19.1% compared to the previous year.
Single-family homes in the price range of $1,000,000 to $1,399,999 saw a 46% year-over-year increase in sales volume. Sales of homes in the price range of $700,000 to $999,999 made up roughly one third of sales in April. Both categories saw the bulk of sales happening in the Ewa Plain region.
Oahu Condo Market Stats
The Oahu condo market has picked up the pace, with condo sales rising 4.2% in April 2022 compared to the previous year. The median sales price for condos in April rose to $510,000, a 13.3% increase year-over-year.
Condos in the price range of $700,000 to $999,999 saw an increase in sales volume of 101.6% year-over-year, while condos in the $1,000,000 to the $1,999,999 range saw an increase in volume of 54.8% in April 2022 compared to April 2021. Around 60% of condo sales for the month were in the Metro Honolulu region, which saw a 16.5% increase in sales volume year-over-year.
The largest decline in sales occurred in the Waipahu and Ewa Plain regions, down 46.7% and 20.0% respectively year-over-year.
Interest rates should cause our single family home and condo market to decelerate over the next few months as the cost to borrow money increases. For sellers looking to sell, now is the time to do so to take advantage of the number of buyers already in the market. For buyers, waiting to buy will cost more in a monthly mortgage payment due to still rising prices and rising interest rates.