92 Percent of Oahu Single-Family Neighborhoods See Decline in Listings in March

92 Percent of Oahu Single-Family Neighborhoods See Decline in Listings in March 

Nearly two-thirds of neighborhoods have no active listings

HONOLULU – (March 22, 2021) –With just 403 active listings in mid-March, Oahu single-family home inventory is at a record low, according to the latest research from local real estate firm Locations. 

“There are fewer than half the number of homes for sale this month as there was a year ago,” said President and CEO of Locations Jason Lazzerini. “We’ve never seen a market this tight,” he added. 

For-sale inventory is below the previous year’s levels in all of Oahu’s 16 market areas, with the steepest decline in the Mililani market, which saw 15 single-family homes for sale in March 2020 and zero this month. The smallest decline in listings--eight percent--is in the Manoa market, which has 24 homes for sale compared to 26 last March.  Drilling down to the neighborhood level, Locations’ research found that just 14 percent of neighborhoods have more homes for sale than a year ago. Sixty-two percent of all neighborhoods have zero active listings in March 2021.  

“Almost two-thirds of Oahu neighborhoods have no single-family home listings this month—well behind a typical spring selling season, where we’d typically see two-thirds of neighborhoods with homes for sale,” Lazzerini said. He also noted that this is in line with national trends. Nationwide, single-family home for-sale inventory is down 30 percent from a year ago.  With just 1.2 months of remaining inventory for single-family homes, sellers have a distinct advantage (six months of remaining inventory is considered to be a balanced market).  

Mortgage rates, which had dipped below three percent, have ticked up slightly to a nine-month high of just above three percent. 

“Mortgage interest rates are still near historic lows, giving homebuyers added purchasing power to compete in a competitive market—and adding to sellers’ bottom line,” Lazzerini said. “However, as upward pressure on rates is likely to continue, homeowners who are considering down-sizing or moving up will want to act while buyer interest is strong.” 

Lazzerini added that while single-family home inventory is scarce, those in the market for a home should act as soon as they are able, as rising interest rates will affect affordability and home prices are unlikely to drop. The median price for single-family home on Oahu in February was $920,000, a record high. 

Homeowners and prospective buyers should contact a knowledgeable Realtor® with access to neighborhood-specific data before listing or purchasing a home. Oahu market-area data is updated monthly at LocationsHawaii.com.