Oahu home sales cool amid price reductions
Sep. 8—Oahu's housing market continued its yearlong slowdown in August as sales declined by about a quarter for the second straight month, bidding wars subsided and the median price for condominiums dipped 0.3 % to fall below $500, 000 for the first time in six months.
Oahu's housing market continued its yearlong slowdown in August as sales declined by about a quarter for the second straight month, bidding wars subsided and the median price for condominiums dipped 0.3 % to fall below $500, 000 for the first time in six months.
The median price for previously owned single-family homes, however, rose 7.2 % to $1, 125, 500 from $1, 050, 000 a year ago to reach its third-highest level ever, according to data released Tuesday by the Hono lulu Board of Realtors.
Single-family homes have stayed at the $1 million level or higher for 13 months in a row. The only other times they sold for higher was in May when they fetched a median of $1, 153, 500 and in March when they hit $1, 150, 000. The median price—the point at which half the sales were for more and half were for less—also was up from the previous month when it hit $1, 107, 944 in July.
Meanwhile, the median price for condos slipped to $498, 500 last month from $500, 000 a year ago. It also was down from $500, 000 in July.
The largest movement in the Oahu real estate market was visible in the number of sales where single-family home transactions declined 26.1 % to 314 from 425 a year ago, while condo sales dropped 24.7 % to 508 from 675.
"As market activity continues to slow with the rise in interest rates, it's important for buyers to remember that homeownership is still possible, " Chad Takesue, president of the Honolulu Board of Realtors, said in a statement. "More than 250 properties on O 'ahu, most of which were condos, sold for under $500, 000 last month."
Sellers have been lowering their prices as the buying frenzy from a year ago dissipates.
Nearly half — 48.7 % — of single-family home sales in August closed below the original asking price compared with 22.8 % a year ago. By the end of last month, 13 % of the newly listed properties had undergone a price reduction, compared with 4 % in August 2021.
Of the total active inventory at the end of the month, 38 % of single-family homes had experienced a price reduction at some point since being listed, compared with 19 % of the active inventory one year ago. The Ewa Plain region accounted for the most price reductions at 23 %, followed by the Diamond Head region at 12 %, the Metro region at 11 % and the Kailua region at 10 %.
In the condo market, 8 % of newly listed condos underwent a price reduction by the end of the month compared with 3 % in August 2021. Of the active inventory, 34 % had experienced a price reduction at some point compared with 21 % of active inventory in the year-earlier period.
"Following the frenzy we saw last year, sellers are working with their trusted Realtors to reevaluate how to price their homes as the market cools off, " Takesue said. "Our data indicate that fewer properties are selling at a premium, and price reductions are rising."
Most regions across the island saw a decline in the number of single-family home sales, with Kaneohe experiencing the biggest decline at 57.8 %. The Ewa Plain was next with a sale decline of 35.2 %.
By sales volume, the condo market saw the Metro area hit the hardest with a 28.8 % decrease in sales compared with a year ago. It was followed by the Kaneohe region with a decline of 42.9 %, the Central area down 25 % and the Ewa Plains off 16.9 %.
HOME SALES The number of homes sold on Oahu in August with the median price and percentage change from the same month last year.
HOMES SALES MEDIAN PRICE 2022 314 $1, 125, 500 2021 425 $1, 050, 000 Change-26.1 % 7.2 %
CONDOS SALES MEDIAN PRICE 2022 508 $498, 500 2021 675 $500, 000 Change-24.7 %-0.3 %
Source : Honolulu Board of Realtors
