Part of Oahu’s housing market slipped into unfamiliar territory last month as the pace of sales continued to slow in the face of higher prices.
The Honolulu Board of Realtors reported that condominium sales plummeted 22% in May to 374 from 478 in the same month last year, representing the biggest year-over-year decline for any month in the last 11 months.
At the same time, a metric gauging the balance between supply and demand has reached a place for condos that it hasn’t been in a long time.
The metric, known as months of remaining inventory, calculates how long it would take to deplete existing listings based on the average monthly sales rate over the prior 12 months if no new inventory was added. The figure for condos rose to 7.1 months in May from 6.8 months in April and 4.4 months in May 2024. In May 2022, the figure was 1.5 months.
Local real estate brokerage firm Locations said in a separate report that it was the first time in more than 25 years that the figure topped 7 months for condos on Oahu, giving buyers more of an upper hand against sellers.
Still, the imbalance hasn’t eroded prices to date.
“While overall sales volume has softened, especially in the condominium market, we are still seeing movement in price-stable segments and specific regions,” Trevor Benn, the head of Forward Realty and president of the Honolulu Board of Realtors, said in a statement.
The median price for May condo sales was $500,000, up 1% from $495,000 in the same month last year.
For single-family houses, the number of sales slipped 6% to 235 last month from 249 a year earlier, and the median price rose 8% to $1,175,000 from $1,085,000. The median price is a point at which half the sales were at a higher price and half were at a lower price.
Months of remaining inventory for single-family homes was 3.6 in May, up from 3.5 in April and 2.9 in May 2024. In May 2022, it was 1.3.
According to the trade association’s report released Friday, higher borrowing costs and rising fees are prompting more cautious decision-making by prospective purchasers, especially those prioritiz- ing affordability in the condo market.
“We are seeing an increasingly price-conscious and value-driven buyer mindset,” Benn said in the report. “Higher borrowing costs, inflation, and rising carrying costs like maintenance fees are contributing to longer decision cycles.”
Part of the reason for higher condo maintenance fees has been property insurance premium spikes largely due to higher costs for reinsurance driven by a rise in catastrophic damage incidents globally.
Homes that sold in May spent considerably more time on the market than homes that sold in May 2024. Single-family houses sold in May spent a median 21 days on the market before being contracted for sale, up from 14 days a year ago. The comparable figure for condos was 39 days, up from 25.
The report from Locations, also released Friday, said homebuyers have more advantages in the current market, including a greater selection of properties, more time to make a decision and increased negotiation power with sellers.
“We’re seeing more price reductions and longer times on market as buyers weigh their options,” Chad Takesue, the company’s chief sales officer, said in the report.
The Locations report generally described Oahu’s housing market as steady amid muted demand.
“Market activity has been somewhat dampened by higher mortgage interest rates and home prices, coupled with economic uncertainty,” the report said. “The single-family home market is stronger than the condo market, which has been softening since early 2024.”
Average interest rates on a 30-year fixed-rate mortgage nationally have ranged this year from 6.62% to 7.04%, according to mortgage buyer Freddie Mac. For the week ended June 5, the average was 6.85%.
Typically homes that were sold in May stem from purchase contracts signed one to three months earlier.
For the first five months of the year, single-family home sales are down 5% and the median price is up 8% to $1,160,000 while for condos sales are down 7% and the median price is unchanged at $505,000 compared with the same period last year.
A forecast for Hawaii’s economy released May 9 by the University of Hawaii Economic Research Organization expects that median home prices on Oahu this year will end up rising 4% for single-family houses and be about flat for condos.
HOME SALES
The number of homes sold in May with the median price and percentage change from the same month in 2024:
HOMES
SALES
May 2025 235
May 2024 249
Change -5.6%
Median Price
May 2025 $1,175,000
May 2024 $1,085,000
Change 8.3%
CONDOS
SALES
May 2025 374
May 2024 478
Change -21.8%
Median Price
May 2025 $500,000
May 2024 $495,000
Change 1.0%
Source: Honolulu Board of Realtors
