Oahu condominium prices climbed to a record $536,000 in March, and single-family homes regained the $1 million threshold, as resales in the local real estate market showed signs of picking up for the spring buying season.
Sales rose in March from the previous month but still were down year over year, according to data released Thursday by the Honolulu Board of Realtors.
The median condo price edged up 0.4% above the previous record of $534,000 in June 2022 and rose 4% from $515,500 in the year-earlier period.
Single-family homes, meanwhile, regained the $1 million mark at $1,083,750 after dipping below that level in January to $970,000 and $987,000 in February. Single-family homes previously had been at $1 million or higher for 17 straight months. Home prices were down 5.8% from $1,150,000 in the year-earlier period.
The median price means half the prices were above and half below the given price.
“O‘ahu’s real estate market is rapidly changing, and it’s been an active first quarter despite year-over-year declines in some statistics,” Honolulu Board of Realtors President Fran Villarmia-Kahawai said in a statement. “While we see advantageous conditions for buyers, including fewer bid-ups and longer days on market, prices are still high, which incentivizes sellers to list their property.”
Buyers, who have been handcuffed by high mortgage rates, haven’t had to deal with bidding wars as most single-family homes and condos continue to close for less than the original asking price. In March, 35% of single-family homes closed at full asking price or more, compared with 74% in March 2022. In the condo market, 41% of condos sold at the full asking price or more, compared with 65% in March 2022.
Mortgage buyer Freddie Mac reported Thursday that the average 30-year mortgage rate dipped to 6.28% from 6.32% the previous week.
Oahu’s ongoing year-over-year decline in sales may be abating as single-family home and condo sales rose 36.4% and 36.6%, respectively, from February. Still, the 236 single-family home sales in March were down 26.5% from 321 in March 2022, and condo sales fell 33.9% to 444 from 672.
“After a slow start to the year, we’re beginning to see signs of the Oahu real estate market returning to more seasonal patterns this spring,” Chief Operating Officer Chad Takesue of real estate firm Locations said in a statement.” The condo median price (was) … pushed up in part by homebuyers who have been priced out of the single-family home market.”
New listings rose in March from the previous month but were down year over year. The number of new listings for single-family homes rose 25.8% from February while new listings for condos increased 14.5%. Over the course of the past 12 months, however, new listings for single-family homes fell 28.9% and for condos dropped 25.8%.
Single-family homes were on the market for a median 36 days in March, an improvement from 47 days in February but still considerably worse than nine days in March 2022. Condos followed the same pattern, as they were on the market 24 days in March, down from 28 days in February but also much worse than the nine days on the market a year earlier.
“Rising prices, sales and bid-ups, along with falling Days on Market, point to continued buyer demand, despite higher borrowing costs,” Takesue said. “Lack of for-sale inventory also remains a challenge, even as new listings increased in March.”
HOME SALES
The number of homes sold on Oahu in March with the median price and percentage change from the same month in 2022:
HOMES
SALES MEDIAN PRICE
March 2023 236 $1,083,750
March 2022 321 $1,150,000
Change -26.5% -5.8%
CONDOS
SALES MEDIAN PRICE
March 2023 444 $536,000
March 2022 672 $515,500
Change -33.9% +4%
Source: Honolulu Board of Realtors
