Oahu Home Prices End Year at New Record High

Oahu Home Prices End Year at New Record High 

Low for-sale housing inventory, homebuyer competition, to drive prices higher in new year 

HONOLULU – (Jan. 5, 2022) – Locations—Hawaii’s leading real estate firm published its Oahu Residential Real Estate Report for December 2021.  

• The Oahu single-family home median price increased by 22 percent over last December to $1,060,000—a new record high—while the condo median price increased by 7 percent to $485,000. The median single-family home price was at or above $1M for six months of the year in 2021. 
• Single-family home sales fell by 12 percent from a year ago, returning to a typical seasonal pattern following unusually high home sales in December 2020. Condo sales rose by 14 percent over the previous year.  
• Single-family homes were on the market for a median of 12 days in December—the same as a year ago—while condos were on the market for a median of 14 days—a decrease of 33 percent from December 2020.  
• Bid-ups remained near record highs in December, with 60.5 percent of single-family homes and 39.7 percent of condos sold for above the asking price.
• Months of Remaining Inventory (MRI), or the number of months it would take for all existing listings to sell if no new listings were to become available, dropped to new record lows, at 0.8 months for single-family homes and 1.6 months for condos. 

“Oahu’s for-sale housing inventory is at new record lows as we begin the new year,” said Senior Vice President of Risk Management and Principal Broker for Locations John Connelley. 

“Lack of inventory for sale continues to challenge the market, pushing prices higher and fueling homebuyer competition,” Connelley added. After increasing in almost every month of 2021, the pace of single-family home and condos sales is slowing—a typical pattern for the end of the year and an indicator of a more stable market. However, even as the pace of sales slows, factors like strong demand, low for-sale housing inventory and competitive market conditions will continue to drive prices up in 2022. 

“Our market experienced unprecedented housing price growth in 2021, with a 20 percent rise in the single-family home median price and a 10 percent rise in the condo median price,” said Connelley. “We’re firmly in seller’s market territory and likely to remain there for the foreseeable future. Homebuyers should be prepared for prices to continue to increase this year, even as historically low mortgage interest rates are expected to tick up.”  

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.

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