Oahu Single-Family Home Median Price Reaches All-Time High of $880,000 in September

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Oahu Single-Family Home Median Price Reaches All-Time High of $880,000 in September

Record-low single-family homes inventory pushed bid-ups to 40 percent last month

HONOLULU – (Oct. 5, 2020) – Locations—Hawaii’s leading real estate firm— published its Oahu Residential Real Estate Report for the 12-month period ending September 2020. This is a comparison to the previous 12-month period ending September 2019:

• Oahu single-family home and condo prices have held steady and are increasing over last year. The single-family home median price hit an all-time high of $880,000 in September 2020, a 13 percent increase over September 2019. The condo median price in September was $445,000, even with last year. The sustained prices for the past 12 months are $810,000 for single-family homes—a two percent increase from the previous 12 months--and $430,000 for condos, a three percent increase. 
• Single-family home and condo sales are returning to the previous year’s levels, after dipping between April and June from the effects of the COVID-19 pandemic. For the past 12 months, single-family home sales are two percent higher than the previous period, and condo sales are 14 percent lower. 
• Days on Market for single-family homes dropped to an all-time low of just 11 days in September. Condos were on the market for a median of 21 days in September—a continued return to typical levels after a spike in June. 
• 40.1 percent of single-family homes were bid-up over the asking price in September, an all-time high, while 19.5 percent of condos were bid-up over asking, the highest since June 2018. High percentages of bid-ups signal that competitive market conditions will likely continue through 2020.

“The initial effects of the coronavirus pandemic have passed, and market activity has returned to last year’s levels or better--evidence of continued strong demand for housing and lack of supply for sale,” said President and CEO of Locations Dan Tabori.

“With just 590 single-family homes for sale, inventory is at the lowest point in the 40 years that Locations has been tracking the Oahu real estate market,” said Tabori, noting that the number of condos for sale has also been dropping since July.

“Record-low single-family home inventory, coupled with near historically low interest rates, pushed median home prices and competition to new highs in September, with four in 10 homes selling for above the asking price,” Tabori added.

At the local market level, Kailua was the top-performing market for single-family homes in September, with home sales up 11 percent over last year. Median home prices in Kailua rose four percent to $1.2M, as 21.9 percent of homes were bid-up over asking, a 36 percent increase over last year. Currently, there are only 47 single-family homes for sale in Kailua, a 55-percent decrease.

Pearl City-Aiea was the top-performing condo market in September, with a three percent increase in prices to $395,000, and Days on Market falling from 18 to just 16. With 38 condos for sale in Pearl City-Aiea in September, there was a 19-percent decrease 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.