The Oahu real estate market concluded the third quarter with a persistent divergence between its two main sectors in September 2025. The single-family home market continued its upward trajectory, with the median sales price rising 3.8% year-over-year to $1,155,000. This consistent performance is reflected in the year-to-date figure, which shows the median sales price for single-family residences up 4.1% to $1,145,000. In contrast, the condominium market experienced a slight cooling, with its median sales price dipping 1.7% year-over-year to $508,750, and the year-to-date median edged down 1.0% to $505,000.

Single-Family Home Resales

	Number of Sales	Median Sales Price
September 2025	276   +27.2%	$1,155,000   +3.8%
September 2024	217	$1,122,722

Condominium Resales

	Number of Sales	Median Sales Price
September 2025	408   +11.5%	$508,750   -1.7%
September 2024	366	$517,500

Source: HiCentral

Buyers gained more leverage and selection as the pace of sales slowed and active inventory grew. Properties spent notably longer on the market compared to the previous year, with the median days on market for single-family homes extending to 26 days (up from 19) and for condos lengthening to 40 days (up from 31). This extended timeline corresponds with an increase in active listings; single-family inventory saw a 5.7% boost, and condo inventory recorded a more substantial 23.3% rise compared to September 2024. While new single-family listings were down 6.0% for the month, condo listings saw a marginal 1.1% bump, and both property types remain ahead in new listings year-to-date.

Despite the market’s more moderate pace, sales activity remained strong in specific segments, reflecting targeted buyer demand. The single-family home market saw significant transaction surges, particularly in the mid-range $800,000 to $899,999 bracket (up 81.0%) and the premium $1.4 to $1.59 million range (which doubled its sales volume). Approximately one in four single-family homes continued to sell above the original asking price, though this was down slightly from last year. For condos, sales activity was particularly robust at the lower end, with the $100,000 to $299,999 range more than doubling its sales volume, and the $500,000 to $599,999 range rising 63.6%. Pending single-family sales fell 11.8%, but pending condo sales saw a modest 2.5% increase, indicating varied short-term momentum across the island’s housing sectors.

Amidst Hawaii’s persistent housing crisis, state agencies administer critical programs designed to open pathways to homeownership for local residents priced out of the market. These initiatives, overseen primarily by the Hawaii Housing Finance and Development Corporation (HHFDC) and the Hawaii Community Development Authority (HCDA), offer Hawaii properties for sale at below-market prices in exchange for strict long-term commitments from buyers.

For prospective homeowners, understanding the mechanics of these programs, particularly the eligibility requirements and the mandated resale restrictions, is paramount to navigating the purchase process successfully.

Gateways to Ownership: Eligibility and Process

Hawaii’s affordable and reserved housing units are targeted exclusively at qualifying local residents. While specific rules can vary by project, the core prerequisites for applicants remain consistent:

Residency and Citizenship: Applicants must be U.S. citizens or permanent residents and must be residents of the State of Hawaii, typically verified through state tax returns.

Income Limits: Eligibility is determined by a household’s gross income relative to the Area Median Income (AMI). Most for-sale programs require households to fall within a range of 70% to 140% of the AMI.

Real Estate Prohibition: Applicants generally cannot own a majority interest in any residential property anywhere in the world. HCDA historically applied a three-year lookback period, while HHFDC’s rule is often applicable at the time of application.

First-Time Buyer Status: With few exceptions, an applicant cannot have previously purchased a property under any of the state’s affordable or reserved housing programs.

Once eligibility is established and applicants are pre-qualified by a lender, the selection process is typically executed through a public lottery. Those selected must then sign a purchase contract along with a legally binding Deed Restriction document with the state agency.

The Long-Term Commitment: Resale and Appreciation Restrictions

In exchange for purchasing the unit at a subsidized, below-market rate, the buyer must agree to two primary restrictions that remain legally attached to the property’s title: the Buyback Program and the Shared Appreciation Equity (SAE) Program.

1. The Buyback Program (Use, Sale & Transfer Restriction)

This restriction is a powerful tool designed to prevent speculative selling and ensure the unit remains occupied by a qualified resident.

Duration and Occupancy: For HHFDC units, this restriction typically lasts for 10 years. The owner must use the unit as their principal residence for the duration of this term.

Mechanism: If the owner attempts to sell, transfer title, or ceases to owner-occupy the unit during the restriction period, the state agency is granted the first option to repurchase the property.

Repurchase Price Calculation: The state’s repurchase price is strictly controlled by a set formula, typically limited to the owner’s original purchase price plus the cost of approved capital improvements and a modest annual simple interest rate (e.g., 1%). This formula ensures the owner is compensated but effectively eliminates any market-rate profit gained during the restricted term.

2. Shared Appreciation Equity (SAE) Program

The SAE mechanism is the state’s way of recouping a portion of the original subsidy, which is then reinvested into future affordable housing projects.

Duration: Unlike the Buyback restriction, the SAE obligation does not automatically expire and remains in effect until it is paid in full.

Trigger Events: Payment of the SAE is generally required when the property is sold, transferred, rented out, or is no longer used as the owner’s principal dwelling.

The Shared Percentage: At the time of the original purchase, a fixed percentage share is calculated based on the difference between the property’s market-appraised value and the lower, affordable sales price. The owner must pay the state that predetermined percentage of the unit’s net appreciation upon the sale or transfer of the property.

These programs represent a calculated trade-off: deeply subsidized purchase prices for a limited owner and a share of future profits. For Hawaii’s working families, this system offers a crucial, though highly restricted, entry point into the challenging reality of homeownership in the islands.

The Oahu real estate market, once characterized by a unified, fast-paced environment, has settled into a distinctly two-tiered system. As of the latest market data, single-family homes and condos are following separate paths, presenting unique opportunities and challenges for both buyers and sellers. While single-family homes largely remain a seller’s market due to persistently low inventory, the condominium sector has shifted toward favoring buyers.

Single-Family Homes: The Resilient Seller’s Market

Despite a slight cool-down in sales volume, the single-family home market on Oahu continues to demonstrate remarkable resilience. This is primarily driven by a lack of available properties. With for-sale inventory remaining low, particularly in highly desirable neighborhoods, competition among buyers is still intense.

Key indicators of this seller’s market include:

Persistent Competition: Many well-priced homes continue to attract multiple offers, with a significant percentage selling above the original asking price.

Short Days on Market: Homes are moving quickly, with median days on the market remaining low, often under a month. This signals strong buyer demand and a streamlined transaction process for sellers who have priced their property strategically.

Stable Prices: While month-to-month fluctuations occur, the median sales price for single-family homes has remained stable or shown modest year-over-year growth, reinforcing the market’s underlying strength.

For sellers, this means a continued position of power, but it also underscores the importance of proper market positioning. Overpriced homes, even in a seller’s market, are sitting on the market longer, while those priced in line with current trends are generating the most interest.

Condos: A New Window for Buyers

In stark contrast, the Oahu condo market has undergone a significant transformation. A steady increase in new listings, new construction, and a slower sales pace have tipped the scales in favor of buyers, creating an environment with more choices and greater negotiating leverage.

The shift is evident in key metrics:

Rising Inventory: Condo inventory has been climbing steadily, giving buyers a much wider selection of properties to choose from across various price points and neighborhoods.

Longer Days on Market: Condominiums are spending more time on the market, with the median days on market notably higher than for single-family homes. This provides buyers with the time to conduct due diligence, secure financing, and make a more considered offer without the pressure of a quick-moving, multiple-offer situation.

Lower Competitive Pressure: The rate of condos selling above the asking price has dropped significantly, indicating that bidding wars are far less common. This allows buyers to make offers at or below the list price and gives them more power in negotiations.

This shift presents a golden opportunity for first-time homebuyers, investors, and those seeking a more affordable entry point into the Oahu real estate market. With more supply and less competition, now is an excellent time for buyers to explore their options and secure a property that fits their needs and budget.

The Bottom Line

The current two-tiered market highlights the need for specialized, data-driven real estate guidance. Whether you are a seller of a single-family home aiming to capitalize on high demand or a condo buyer looking to take advantage of favorable market conditions, understanding these distinct trends is essential for making a successful move. A local real estate professional can provide the nuanced insights necessary to navigate these divergent paths and achieve your real estate goals on Oahu.

Sachi Hawaii is Here to Help

Looking to buy or sell a home or condominium? Let Sachi Hawaii’s expert team guide you through the process. Contact Sachi Hawaii:
(808) 596-8801 | info@sachihawaii.com