Oahu Real Estate Market Report For November 2022
Overall, the Oahu Real Estate market is slowing in terms of sales, but inventory is tight - keeping prices in roughly the same place.
The market continues to decelerate, with higher mortgage interest rates and record inflation contributing to a pullback by homebuyers and sellers. Conditions remain competitive, though I expect prices to level off for the next year as buyers face affordability challenges due to high interest rates.
For Single-Family Home buyers, this presents an opportunity to purchase without as much competition. In November, about one in four sellers lowered their asking prices at least once. The "cup-cake" properties that are pretty and nice are selling quickly and with competition. Meanwhile, properties that have issues and need work are sitting on the market and present opportunities for buyers willing to negotiate.
This means that single-family home sellers may need to do repairs and upgrades in order to present their property in the best light possible for the marketplace, as well as properly price their homes.
Oahu Single-Family Home Market Stats
Sales in the single-family home segment experienced a significant decline during November 2022, down 48.2% compared to the prior year. Despite this, the median sales price for a single-family home rose by 9.5% year-over-year, to $1,149,500. Home sales in the $700,000 to $1,099,999 price range accounted for the most significant decrease in volume during November 2022 compared to November 2021, down 55%.
The inventory remains tight overall, but has been steadily increasing. Those areas seeing an increase of inventory are Central Oahu, Ewa Plain, Leeward, Pearl City, and Waipahu. Single-family homes spent a median of 18 days on the market through the month of November 2022 and had approximately 2.2 months of inventory remaining.
Oahu Condo Market Stats
The median sales price for a condo has dropped 4% year-over-year, down to $480,000. This is notably the first month to see lowered condo prices compared to the previous year. Around 36% of active condo listings experienced a price reduction during the month of November 2022. Condo sales in the $400,000 to $699,999 price range saw the largest decrease in volume compared to the previous year, down 50%.
Condo supply on Oahu increased across the island with the exception of Diamond Head and Pearl City. Active inventory for condos varied depending on price points, with supply in the $400,000 to $1,999,999 price range increasing by 45% and supply above $2,000,000 decreasing by 17% year-over-year. Condos spent a median of 18 days on the market through the month of November 2022 and had approximately 2.3 months of inventory remaining.