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Chris Morgan |
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Suzanne Smith Associates |
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Market Analysis
State of Hawaii As a state where the land that is available for private ownership and new construction are in short supply, prices have been gradually increasing. Some residential sectors could see higher sales volume in coming months as the economy improves. Hawaii has a strong banking system, with credit available and money to lend. Even with higher interest rates, we still expect that there to be continued incentive for resident Buyers to make their purchase, as more mainland buyers are choosing to relocate here.
Oahu
The most populated island in the Hawaiian chain of eight major islands has continued to experience an increase in housing prices, and a continuing population increase has led to a scarcity of housing in recent years. There is a lesser inventory of properties for sale. Since people still need places to live, there is continuing demand.
Honolulu
Although new single family home construction in town is down (with most new home construction in communities outside of Honolulu), several high rise properties are planned for the future, or under construction. As the international crossroads of the Pacific for air travel and shipping, and the center of commerce, tourism, and government administration for the state, properties in Honolulu's housing market continue to be in demand.
Waikiki The ongoing revitalization and upgrading of hotel properties in the heart of Waikiki, and the construction of the new towers, continue to enhance Waikiki's value and appeal to a more upscale clientele. We already have the world's best known resort beach - Waikiki, and resort landmark - Diamond Head, as well as 365 days of warm weather to go with crystal seas, verdant greenery, and spectacular sunsets. This continues to drive interest in purchasing by resident and non-resident buyers alike. Waikiki is still in demand for vacation condominiums or investment properties. Baby boomers still want to purchase for their retirement. Working people and retirees also like the convenience and amenities. Sales prices have been improving, and we expect them to continue to improve as the economy improves.
The following Market Report for February 2024 is cited from The Honolulu Board of Realtors website HiCentral.com: https://www.hicentral.com/mpr/mpr-2024-02.php Oahu Housing Market Warms Up in February Single-family home and condo sales continue to rise despite modest increase in median prices
According to resale figures released today by the Honolulu Board of REALTORS, single-family home sales totaled 179, while condo sales reached 334 - a modest gain of 3.5% and 2.8%, respectively. When combined with January sales, 2024 shows continued improvement over 2023, with total year-to-date sales up by 7.2% compared to the same period last year.
Both markets experienced year-over-year growth in median sales price. Single-family homes observed an 8.9% jump, reaching $1,075,000, while condo sales increased 6.8% to $512,500. Additionally, the median days on the market for single-family homes decreased by 17 days to 30 days from 47 days in February 2023. However, condos stayed on the market longer than last year, with a median of 39 days compared to 28 days.
Using data collected from its computerized Multiple Listing Service (MLS) system, the Board reported the following statistics: Single Family Home Resales Number of Sales Median Sale Price February 2024 179 +3.5 % $1,075,000 + 8.9 % February 2023 173 $987,000
Condominium Resales Number of Sales Median Sale Price February 2024 334 + 2.8% $512,000 + 6.8 % February 2023 325 $480,000 Sales volume for single-family homes remained steady compared to last year, up just six sales. Homes priced $1,000,000 and above made up nearly 60% of total sales this February, compared to 49% in February 2023, a 25.9% year-over-year increase. Conversely, single-family home sales below $1,000,000 dipped by 18.2% year-over-year. In the condo market, the $500,000 to $699,999 price range experienced the most significant growth, with 96 sales compared to 67 in February 2023, an increase of 43.3% or 29 units. Meanwhile, condos priced between $200,000 to $499,999 declined by 17.9%, or 30 sales. "The modest increase in sales volume, median prices and new listings indicates Oahu's housing market is warming up," said Fran Gendrano, president of the Honolulu Board of REALTORS. "Demand for housing remains strong, and it's critical we encourage accessibility and affordability in our real estate market." New listings improved from last year, with 295 in the single-family home market and 533 in the condo market in February, growing 26.6% and 15.1%, respectively. However, compared month-over-month, new listings for homes increased by only 3.5% and declined by 8.3% for condos. In the $800,000 to $899,999 range for single-family homes, new listings surged 88.0%, with 47 new listings compared to 25 last February, while the largest volume of new listings was in the $1,000,000 to $1,499,999 range with 100 newly-listed homes. In the condo market, the $300,000 to $499,999 range saw a 33.8% rise in new listings. Besides Hawai‘i Kai and Kailua, all regions maintained or exceeded last year's new listing volumes. The Metro region experienced the largest increase, up 14.8%, with 333 new condo listings compared to 290 last year.
Compared to a year ago, active inventory levels increased by 9.5% for single-family homes and 17.9% for condos. Month-over-month, single-family home inventory decreased by 1.3%, while condo inventory increased slightly by 3.0%. By the end of February, there were 599 active single-family home listings and 1,388 active condo listings.
"Working with a REALTOR can help buyers and sellers stay informed about market conditions and connect them with programs and services to navigate the journey to homeownership,” Gendrano added.
In February, 23% of single-family home sales closed above the original asking price, compared to 19% at the same time last year, and the median sales price to original list price ratio was 97.8%, up 1.8%. Similarly, the condo market also saw a slight increase in sales closing above the original asking price, with 18% of sales this February, compared to 15% in February 2023, and a nearly even median sales price to the original list price ratio of 97.9%.
Pending sales for single-family homes jumped 24.0% year-over-year and 22.3% month-over-month, with 269 contract signings in February. Condos ended the month with 390 contract signings, 2.3% lower than a year ago but slightly improved by 3.7% from last month. In the single-family market, there was a 40.7% year-over-year increase in contract signings in the $800,000 to $899,999 price range, with 38 properties going into escrow throughout the month compared to 27 in February 2023. For condos, pending sales activity varied across price points."
HiCentral.com
Honolulu Board of REALTORS 1136 12th Avenue, Suite 200 Honolulu, Hawaii 96816
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