Oahu’s housing market continued to cool as sales of single-family homes and condominiums fell by nearly a quarter in July.
With high mortgage rates and rising inflation putting a crimp in real estate transactions, prospective homebuyers tended to stay on the sidelines during the month even though previously owned properties that did exchange hands were purchased at higher prices than a year ago and at a fast pace.
Sales of single-family homes declined 22.8% to 312 from 404 in July 2021, according to data released Saturday by the Honolulu Board of Realtors. Condos fell by the same percentage with 518 being sold compared with 671 a year ago. Sales also slipped from a month ago, down 12.6% for single-family homes and 17.3% for condos.
The median sales price — a point at which half the sales were for more and half were for less — rose 11.6% for single-family homes to $1,107,944 from $992,500 a year earlier. Condo prices increased 5.3% to $500,000 from $475,000 over the same time frame.
“Demand continued to cool in July, likely due in part to the rise in interest rates,” Honolulu Board of Realtors President Chad Takesue said in a statement. “However, properties are still moving into contract quickly with median days on the market at 11 days for single-family homes and 12 days for condos last month, despite the decline in sales.”
Even though sales have been dropping, prices remain at elevated levels. For single-family homes, the median price has now reached at least $1 million for 12 months in a row. The median in July was slightly above the $1,100,000 reached in June.
Condos, which had hit record prices for two months in a row, saw that modest streak come to an end after failing to match or surpass June’s median price of $534,000. Still, condo prices now have been at $500,000 or higher for five months in a row.
Single-family home sales fell across most regions on the island, with the largest drop occurring in the Ewa Plain, Kaneohe and Leeward regions. In the condo market, the metro region accounted for the largest decline in sales volume, ending the month down 26.7% with 285 sales compared to 389 a year ago.
The volume of contract signings continued to wane, with pending sales for single-family homes down 31.4% from a year ago and for condos, down 26.4%.
For those people able to afford homes, active inventory remained on the rise after being limited earlier in the year. In July, out of 386 single-family home listings added to the market, there were 243, or 63%, that remained active at the end of the month compared to 46% in the year-earlier period. Of the 616 condo listings that were added, 353, or 57%, remained active compared to 49% at the end of July 2021.
Bidding wars for properties seemed to be subsiding with 49% of July single-family home sales closing above the original asking price compared to 70% one year ago and 62% one month ago. Although the majority, or 66%, of sold single-family homes received the full asking price or more, that share also fell compared to 79% of sales during the same time last year.
The portion of condo sales that closed above the original asking price was 37%, nearly flat with the previous year’s 38%, but down slightly compared to recent months. Sixty percent of closed condo sales in July received the full asking price or more compared to 62% both a year ago and last month.
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HOME SALES
The number of homes sold on Oahu in July with the median price and percentage change from the same month in 2021:
HOMES
SALES MEDIAN PRICE
July 2022 312 $1,107,944
July 2021 404 $992,500
Change -22.8% 11.6%
CONDOS
SALES MEDIAN PRICE
July 2022 518 $500,000
July 2021 671 $475,000
Change -22.8% 5.3%
Source: Honolulu Board of Realtors
