O’ahu Market Update
The 2024 Real Estate Market continues to rebound from a dismal 2023. Last month closed sales increased for both homes (3.5%) and condos (2.8%), signaling continued growth in buyer demand for housing. Typically, the median sales prices increase as demand increases, which we saw happen in February with homes reaching $1,075,000 (8.9% increase) and $512,500 for condos (6.8%). There is one trend to keep a close eye on as we move through the year. The townhome and condo inventory increased by 17.9% last month as compared to the same time last year. Furthermore, new listings for homes grew by 26.1% and 15.9% for condos.
As inventory grows, buyers will have more choice, which slows the speed of sales and could result in a flattening of prices. That said, the actual number of single-family homes for sale remains low at just 599 for a population of over 1 million people on our island. Low inventory with steady or strong demand could cause prices to rise. Buyers and sellers continue to negotiate prices as evidenced by the sales price to list price ratio. Last month, buyers paid 97.8% of the list price to buy a home and 97.9% to buy a condo.
In summary, demand for housing is rebounding as interest rates remain steady while the inventory of homes and condos is growing. That change hasn’t had a significant impact on prices as of yet. Keep a close eye on mortgage interest rates. Over the past 18 months, sales and supply have moved as rates move.
