Oahu home sales still light but showed improvement in July

Oahu’s housing market remained depressed in July, though new sales data shows the severity of the decline is easing.

The Honolulu Board of Realtors reported on Thursday that sales of previously owned homes last month slipped 3% for single-family houses and 17% for condominiums compared with a year earlier.

The 3% decline for single-family home sales represented continued improvement from year-over-year declines of 8% in June, and about 22% in April and May.

For condos, last month’s 17% decline also was a dramatic improvement from year-over-year declines of 34% in June, 51% in May and 28% in April.

Still, the market has yet to rebound from negative territory.

In July, there were 361 single-family home sales, down from 372 in the same month a year ago.

For condos, there were 426 sales compared with 513 in the same comparable period.

Median sale prices were down modestly in July.

Single-family homes sold for a median $815,000 in July, down 2.4% from $835,000 a year earlier. Last month’s median price was the highest for any month this year, and the year-ago median is a record for any month to date.

Condos sold for a median $440,000 last month, down 4.7% from $461,500 a year earlier. The July median price was the second-highest for any month this year, and the year-ago median is a record for any month to date.

The median price is a point at which half the sales were for more and half for less.

The trade association representing residential real estate sales agents said pent-up demand from prospective buyers and historically low mortgage interest rates are helping produce sales during the recent economic downturn triggered by the novel coronavirus.

“This real estate activity indicates confidence in our local housing market and contributes to the recovery of Hawaii’s economy,” Tricia Nekota, president of the association and an agent at Vesta Hawaii Real Estate, said in a statement.

Home sales have been dragged down in recent months by economic impacts and safety measures related to the COVID-19 pandemic.

Job and wage losses affecting more than 250,000 residents have reduced the financial ability of many people to buy homes, while uncertainty surrounding the economy and job security have undermined confidence for scores of other potential buyers.

Meanwhile, sellers are putting fewer homes up for sale.

There were 1,136 single-family homes on the market in July, which was the lowest inventory level in more than two years and compared with 1,621 homes a year earlier.

Condo listings were better with 2,317 units on the market last month, which was higher than most months this year but down from 2,444 listings in July 2019.

Local real estate brokerage firm Locations said in its own report released Thursday that reduced supply is producing more competition for attractive home offerings, which helps elevate median sale prices.

“For about two months now, we have been seeing well-priced properties on Oahu receive multiple offers even before the first open house,” Jason Lazzerini, Locations president and CEO, said in the report.