Oahu Single-Family Home Inventory Falls to New Lows

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Anne Cicero

Locations

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Oahu Single-Family Home Inventory Falls to New Lows

Strong demand from local homebuyers pushes prices higher in August 2020

HONOLULU – (September 3, 2020) – Locations—Hawaii’s leading real estate firm— published its Oahu Residential Real Estate Report for the 12-month period ending August 2020. This is a comparison to the previous 12-month period ending August 2019:

• Single-family home and condo sales are returning to the previous year’s levels, after dipping between April and June of this year as a result of the impact of COVID-19. Home sales were two percent higher in August than a year ago; however, condo sales—though trending up—remain 15 percent lower than a year ago. 
• Single-family home and condo prices are higher than a year ago, at $840,000 and $430,000, respectively—an increase of six and three percent over August 2019. 
• Single-family home for-sale inventory is down 45 percent compared to the same period last year, and is at its lowest point in more than 15 years. Active listings for condos are below the previous year's levels since July, down three percent. 
• The percent of single-family homes bid-up above the asking price is at a record high, while condo bid-ups have been increasing since July—an indication that competitive market conditions will continue through 2020.

“We’re all spending more time at home as we continue to grapple with the effects of COVID-19, and that has led many Oahu residents to re-evaluate their needs for outdoor space, a home office or other amenities,” said Jason Lazzerini, president and CEO of Locations.

“Home and condo sales have rebounded after dipping in the spring, as mostly local homebuyers are taking advantage of interest rates below three percent to move to larger or more comfortable homes,” Lazzerini added. He also noted that a rise in remote work has also allowed some workers to consider neighborhoods outside the urban core that they may have previously excluded due to commute times.

“Already extremely competitive West and Central Oahu markets, like Ewa, Mililani and Pearl City, are becoming even more competitive as homebuyers look for larger floorplans and outdoor space. Sellers in these markets are at an advantage,” said Lazzerini.

At the local market level, Ewa was the top-performing market for single-family homes in August, with home sales up 11 percent over last year. Ewa homes sold in a median of just 15 days—a decrease of 42 percent. More than 23 percent of Ewa single-family homes were bid-up over asking, as inventory for sale dropped by 69 percent—signaling continued competitive conditions. Currently, there are only 39 single-family homes for sale on the entire Ewa Plain.

Makakilo was the top-performing condo market in August, with a three percent increase in prices and Days on Market falling from 23 to just 20. With just six condos for sale in Makakilo in August, there was a 75 percent drop in inventory.

As local markets perform differently, Locations recommends that homebuyers and sellers partner with an experienced Realtor® who can give them a competitive edge by providing neighborhood-level housing data to make informed decisions. Locations agents are continuing to serve their clients while complying with the State of Hawaii’s health and safety guidelines using a host of technology solutions, including virtual home tours and open houses.

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As the state’s oldest and leading independent real estate firm, our trusted Neighborhood Experts have served Hawaii’s families since 1969. For more than 50 years, Locations has helped more people buy or sell their homes than any other real estate firm in the state. With our rich kama’aina roots, innovative technology and dedicated market-research department, Locations continues to be at the forefront of this ever-changing industry. Today, Locations has 300 agents in five offices across Oahu. Through our non-profit, the Locations Foundation, our agents and staff support more than 100 Hawaii non-profit organizations both through monetary donations and volunteer hours. Visit LocationsHawaii.com/about-us today to learn more. For up-to-date Hawaii real estate updates, follow Locations on Facebook at: www.facebook.com/LocationsHawaii, Twitter at @LocationsHI, Instagram at @LocationsHawaii, and LinkedIn at www.linkedin.com/company/locations-hawaii. Read the Locations blog at: www.LocationsHawaii.com/news.