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August 21, 2023

Honolulu Market Report: July 2023

Oahu’s housing market cooled in July as rising borrowing costs and inflation dampened buyer demand. Sales of single-family homes fell 28.2% year-over-year, and condo sales dropped 18.5%. However, active inventory for both home types increased slightly, and days on market also rose.

The median sales price for single-family homes was $1,090,000, down 1.6% from a year ago. The median sales price for condos was $500,000, unchanged from last year.

Single-Family Home Resales

Number of Sales Median Sales Price
July 2023 224  -28.2% $1,090,000  -1.6%
July 2022 312 $1,107,944

Condominium Resales

Number of Sales Median Sales Price
July 2023 422 -18.5% $500,000 0.0%
July 2022 518 $500,000

“Rising borrowing costs have buyers taking a more cautious approach, so homes remain on the market for longer periods,” said Fran Villarmia-Kahawai, president of the Honolulu Board of REALTORS®. “But demand and median sales prices are holding steady due to low inventory.”

New listings also declined in July, with a 28.8% year-over-year drop for single-family homes and a 15.4% fall for condos. However, active inventory for single-family homes increased 2.6%, and active inventory for condos increased 9.9%. This was due to a combination of factors, including fewer sellers listing their homes and more buyers sitting on the sidelines due to rising costs.

Pending sales for single-family homes rose 6.9% month-over-month, and pending sales for condos rose 1.4%. Ewa Plain, Waipahu, and Pearl City saw increased contract signings for single-family homes, with growth rates of 18.5%, 18.8%, and 13.3%, respectively. The Leeward region stood out for condos, experiencing a significant 92.3% boost in contract signings year-over-year.

“The best thing you can do if you’re interested in buying or selling is to work with a REALTOR® who is not only committed to helping you achieve your real estate goals but understands the nuances of the market and the complexities of a real estate transaction,” Villarmia-Kahawai said.

Overall, the Oahu housing market is expected to remain relatively stable in the coming months. However, rising borrowing costs and inflation are likely to continue to dampen buyer demand, which could lead to further declines in sales volume.

In addition to the factors mentioned above, the Oahu housing market is also being affected by the ongoing labor shortage and supply chain disruptions. These factors are making it more difficult and expensive to build new homes, which is contributing to the low inventory.

If you have questions, Sachi Hawaii would be happy to help you evaluate when’s the best time for you to buy or sell. Please feel free to contact Sachi Hawaii: (808) 596-8801 | info@sachihawaii.com

Source: hicentral.com

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