West Oahu includes some of Oahu's most popular neighborhoods. Within the area's many neighborhoods are a variety of home types—from high-rise condos and townhomes to plantation-style homes and luxury estates. Here are five things to know about this huge real estate market in 2023.

With some economists suggesting the U.S. economy may experience a mild recession in the next year, many homebuyers and sellers may be wondering what a possible slowdown in the economy could mean for Oahu home prices. Using historical market data dating back to 1980, Locations' research shows why a meaningful drop in Oahu home prices is unlikely—regardless of fluctuations in the economy.

Mortgage rates improved in November 2023. Locations expects to see rates drop below 7% in 2024, offering prospective buyers some much-needed relief. Looking ahead to 2024, stronger sales activity is anticipated as mortgage rates cool. A modest increase in inventory is possible if lower rates bring more sellers to the market. As rates come down, home prices are likely to rise.

In the October 2023 interest rate environment, it’s important to keep in mind that the Oahu real estate market is stronger now than it was in the years leading up to the pandemic. Although both homebuyer and seller activity have been dampened somewhat by higher mortgage rates and recent increases in home prices, Oahu is still a competitive market due to low housing supply and broad, high demand.