After 2021 Surge, Oahu Housing Market Continues to Moderate in June 2022

After 2021 Surge, Oahu Housing Market Continues to Moderate in June 2022

Condo median price hits new high at $533,000

HONOLULU – (July 6, 2022) – Locations—Hawaii’s leading real estate firm published its Oahu Residential Real Estate Report for June 2022.

• The Oahu single-family home median price increased by 13 percent from a year ago to $1,110,500. The condo median price increased by 16 percent to $533,000—a new record. Median prices continue to rise, pushed upward by strong demand, low inventory and competitive market conditions. 
• Single-family home sales fell by 21 percent from June 2021, and condo sales fell by 16 percent. Year-to-date, single-family home sales are now down by six percent from a year ago, while condo sales are still increasing and up by 13 percent. 
• Single-family homes were on the market for a median of 11 days in June, an increase of two days from a year ago. Condos were on the market for a median of 12 days, the same as a year ago. 
• Bid-ups continue at record highs, with 63 percent of single-family homes and 43 percent of condos sold in June bid up over the listing price. Bid-ups are an indicator of strong demand, suggesting housing prices will continue to rise in 2022. 
• The number of single-family homes for sale is increasing, while the decline in condos for sale has now leveled off. However, for-sale housing inventory is still at historically low levels. At the end of June 2022, 561 single-family homes and 1,055 condos were on the market, an increase of 23 percent and a decrease of five percent, respectively, from last year.  

“We’re continuing to see some signs of moderation in the Oahu real estate market after an unusually strong year in 2021,” said Senior Vice President of Risk Management and Principal Broker for Locations John Connelley. “The pace of sales is slowing for single-family homes and flattening for condos, and while prices are still rising, the rate of increase is lessening. We’re also seeing an increase in homes for sale—an encouraging sign for homebuyers, although housing inventory remains at historically low levels. Competition is also stiff, and homes are selling quickly, in general.”

“The condo market is now more competitive than the single-family home market, as demand for condos— which are often less expensive and more plentiful—grows. As pressures on the condo market increase, we expect prices will continue to rise,” said Connelley.

“Rising mortgage interest rates are affecting market activity, as some homebuyers—particularly first-time buyers—face reduced buying power. We’re also seeing buyers who don’t have to move being more selective. However, demand for Oahu housing is so broad, it’s unlikely that our market will be depressed by higher rates,” Connelley added.

Locations recommends that homebuyers and sellers partner with an experienced Realtor®, as local markets perform differently. Locations agents are able to serve their clients safely while complying with the State of Hawaii’s health and safety guidelines. Virtual meetings, home tours and open houses are also available.