Oahu Single-Family Homes Sales Continue to Climb

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Anne Cicero

Locations

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Oahu Single-Family Homes Sales Continue to Climb

Falling interest rates to spur spring selling season

HONOLULU – (March 4, 2019) – Locations—Hawaii’s leading real estate firm— published its Oahu Residential Real Estate Report for the 12-month period ending February 2020. This is a comparison to the previous 12-month period ending February 2019:

• Single-family home sales have been increasing steadily since Summer 2019 and are up by six percent for the past 12 months. Condo sales are down three percent from the previous year. 
• Median single-family home prices are holding steady at $785,000 for the past year—a decrease of one percent. Median condo prices increased by two percent for the year to $430,000. 
• Across the island, single-family home prices increased in lower-priced markets and decreased in higher-priced markets. Leeward Oahu single-family homes saw the greatest percent increase in median price, by three percent. 
• East Oahu saw the greatest percent decrease in single-family home median price, by 20 percent—a reflection of market adjustments, as well as the diversity of East Oahu home sales. Single-family home active listings are down by 19 percent, well below last year’s levels. Condo listings are two percent higher than a year ago, thanks to increases throughout most of 2019. 

“Fears surrounding the coronavirus and its potential long-term effects on the stock market have pushed interest rates to their lowest point since 2012.” said Jason Lazzerini, president and CEO of Locations.

“At the same time, Oahu’s housing inventory—which had been rising in 2018 and 2019—has been falling since the summer and is now well below last year’s levels.” he added. Lazzerini went on to say that Locations expects to see a stable housing market this spring, with the potential for increasing sales, especially as mortgage rates are likely to remain at near-historic lows. Although the pace of condo sales is still below last year’s levels, the decrease in condo sales is lessening, indicating a coming shift in the condo market.

“Competition for single-family homes has also picked up, with one in five homes sold for above the asking price in February,” Lazzerini added, noting that homebuyer activity is likely to continue to increase over the next several months.

At the local market level, Ewa was the top-performing market for single-family homes in February, with sales of single-family homes up 12 percent over last year. Median home prices in Ewa rose by just one percent to $685,000—well below the overall Oahu single-family home median. Ewa homes are selling in a median of three weeks, while bid ups decreased to 18 percent of Ewa homes sold for above the asking price. However, with 42 percent fewer single-family home active listings in Ewa this year compared to last, competition for Ewa homes is likely to increase.

On the condo side, Hawaii Kai was the top-performing market in February, with a six percent increase in sales and a flat median price of $685,000.Competition for Hawaii Kai condos has eased, with Days on Market increasing from 21 days to 34 days over last year, and just under 13 percent of condos sold for above the asking price. Condo inventory in Hawaii Kai decreased by seven percent, leaving 53 condos currently for sale. As low mortgage interest rates are expected to draw more homebuyers this spring, Locations recommends that both homebuyers and sellers partner with an experienced Realtor® who has access to neighborhood-level housing data.

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About Locations As the state’s oldest and leading independent real estate firm, our trusted Neighborhood Experts have served Hawaii’s families since 1969. For 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 over 400 agents across the state with five offices on Oahu, one on Maui and four on the Big Island (Clark Realty). 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.