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 Honolulu 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
