O’ahu Market Update
Single-Family Homes
The single-family home market experienced mixed results in May 2024, reflecting both challenges and opportunities.
Home sales decreased by 5% compared to May of last year while active inventory increased by 17.9% year-over-year, providing more options for buyers. Meanwhile, the average price was up by 4.7%, indicating continued demand for higher-priced homes and the median price dropped slightly by 2.2%, suggesting a greater number of lower-priced homes being sold, possibly indicating more first-time homebuyers entering the market as mortgage interest rates have steadied or the recent increase in new loan related programs. Buyers paid, on average, 100% of the list price, reflecting low inventory compared to demand, pushing buyers to pay the sellers’ asking price. All-in-All indicators through May are positive, showing a rebound from last year.
Condo Market
The condo market showed a different set of dynamics in May 2024, with notable contrasts to the single-family home market.
Closed sales increased by 9.1% compared to May 2023, highlighting strong demand when those offers were accepted 45–60 days ago. However, the average price decreased by 4.9%, and the median price moved slightly lower by 2%. The median days on the market rose by 25%, with condos taking an average of 25 days to sell. This could be a result of the ballooning condo inventory which rose to 1,651, which is a 47.7% increase from last year. This may have caused the drop in buyers’ willingness to pay the sellers’ list price. Last month buyers paid just 98.3% of the list price.
Conclusion
May 2024 has brought a complex landscape for the real estate market. Single-family homes saw a decline in sales but maintained price strength and balanced market conditions. In contrast, the condo market experienced an increase in sales but faced price drops and extended time on the market, driven by a significant rise in inventory. Overall, the market shows positive year-to-date trends, with increased inventory offering more choices for buyers and signs of recovery across different property types.
