Sales of previously owned homes on Oahu remained depressed in August while prices didn’t change much amid higher mortgage interest rates, an industry report released Wednesday shows.
The Honolulu Board of Realtors reported that the number of single-family home sales fell 19.7% to 252 in August from 314 in the same month last year.
For condominiums, 422 sales last month represented a 16.9% drop from 508 sales a year earlier.
Oahu’s housing market has been in a downward sales trend since early- to mid-2022 after average interest rates began rising from about 3% at the end of 2021 to around 7% recently, elevating the cost of financing and reducing how much many buyers can pay for a home.
Median home sale prices, however, generally haven’t budged more than a little on Oahu during much of the same period.
In August, the median sale price for single-family houses slipped 1.4% to $1,110,000 from $1,125,500 in the same month last year. The condo median sale price edged up 3.3% to $515,000 from $498,500 in the same period.
The median price is a point at which half the sales were for more and half for less.
Record median sale prices for a single month were set over a year ago — in May 2022 at $1,153,500 for single-family homes and in June 2022 at $534,000 for condos.
Fran Villarmia-Kahawai, president of the trade association and an agent with Lifehouse Realty, noted in the report that more homes sold in August than in July and called it a positive trend.
“Despite higher interest rates, we notice positive trends emerging from the data, including buying activity starting to pick up month-to-month for single-family homes,” she said in the report.
Seasonal factors, however, often play into some months being more active than others. The number of single-family homes was higher in August than in July for nine of the past 10 prior years.
The number of condo sales this year was exactly the same in August and July.
On the price side of the market, relatively flat inventory is helping support prices.
Chad Takesue, chief operating officer at local brokerage firm Locations, said in a company report that it remains a sellers’ market based on the level of demand in relation to supply.
Inventory of homes for sale at the end of August would be depleted in 2.7 months for single-family homes and 2.8 months for condos if no new inventory were added and demand stayed at the monthly average from the past 12 months, according to the Board of Realtors report.
“For-sale housing inventory remains flat, constraining home sales — with less than three months’ worth of homes and condos for sale, it’s still a sellers’ market,” Takesue said in the Locations report.
Takesue also said in the company report that home sales this summer have been stronger than expected even though they have been lower than the previous two years. “Despite rising interest rates, we continue to see strong demand for Oahu real estate,” he said.
Homes sold in August typically reflect deals agreed to between buyers and sellers one to three months earlier.
Looking at inventory and data for pending sales, Takesue noted that small price reductions may be ahead after average interest rates on a 30-year fixed-rate mortgage topped 7% in mid-August.
“The extent to which interest rates above 7% will affect home sales in the coming months remains to be seen,” he said.
HOME SALES
The number of houses and condominiums sold on Oahu in July with the median price and percentage change from the same month last year:
HOUSES
SALES MEDIAN PRICE
July 2023 224 $1,090,000
July 2022 312 $1,107,944
Change -28.2% -1.6%
CONDOS
SALES MEDIAN PRICE
July 2023 422 $500,000
July 2022 518 $500,000
Change -18.5% 0%
Source: Honolulu Board of Realtors
