O’ahu Market Report – August 2024
A metaphorical ray of light is beginning to shine through the clouds in the form of lower mortgage interest rates. While there is strong hope that reduced rates will create a floor to the market, market indicators likely won’t reflect market movement for a few months.
For example, sales dropped by 5.9% for homes and 5% for condominiums last month compared to the same time last year. From the buyer’s point of view, the market is leaning in their direction with increased price negotiation, significantly more properties for sale and more time to make their choice of which to buy. Sellers aren’t completely left out in the cold.
Last month, the median sales price for homes increased by 1.1% and condos only corrected downward by 2.9%, even while facing the insurance crisis. Given the price increases over the past 4 years, sellers are likely in a good equity position and if priced at market, will likely receive an offer in less than a month. Properties for sale were on the market for just 14 days for homes last month before accepting an offer, while condominiums lasted 28 days on the market before accepting an offer.
Buyers continue to have more choices for both homes and condos as the total inventory of homes for sale increased by 27.1% and condos for sale increased by 64%. Buyers are still refusing to pay the list price as the percent of list price paid for properties that sold last month was 99.5% for homes and 98.3% for condos.
The home sales indicators and economic factors show signs that we can expect another shift in the market sooner rather than later. Reach out to your Berkshire Hathaway HomeServices Hawai’i Realty agent to find out the opportunities which lie ahead for you.
