O‘ahu Homes and Condos Are Getting Super Expensive
Single-family home prices hit $700,000; condos reach $380,000.
The median price of O‘ahu single-family homes rose to $700,000 in March, up 6.5 percent from a year ago, according to statistics released by the Honolulu Board of Realtors.
The $700,000 matches the second-highest median recorded for the island. A record $719,500 was set in November, breaking the previous mark of $700,000 in June.
The median price for condos, meanwhile, surged 8.6 percent to $380,000, just shy of the record $381,500 set in January.
“The increase in median prices reflects the continued limited inventory available, especially in single-family homes,” said Jack Legal, president of the board. “With limited single-family homes for sale, homebuyers may look toward condos as affordable options, and the increased demand also drives median condo prices upwards. Simply put, demand continues to outpace supply.”
The rising home prices on O‘ahu are being fueled by historically low interest rates, a strong job market and low inventory.
According to the board, despite the rising number of active listings there were still just 2.7 months of inventory for single-family homes. “Months of inventory” is a gauge that means it would take about two-and-a-half months to sell all the listings currently on the market if no new inventory came on the market. A balanced market is considered five to seven months. Anything less is considered a seller’s market. For condos, there were 3.4 months of inventory.
The near-record prices in March come after a dip in February, one of the slowest months for real estate sales. In February, the median was $648,000 for houses and $326,000 for condos.
There were 244 single-family houses sold in March, similar to the 246 sold during the same month last year. As for condos, 403 units changed hands, up from 387 units a year ago.
Single-family homes and condos on O‘ahu are staying on market for an average of just three weeks.