Honolulu Home Prices Have Hit a New Record High

Home prices hit a record of $730,000.

October 7, 2015

Jaymes Song,

The median price for an O‘ahu single-family homes soared to $730,000 last month, easily surpassing the previous mark of $719,500 set in November 2014, according to statistics released by the Honolulu Board of Realtors on Wednesday.

September’s median price is up 7.6 percent from the same month last year. There were 329 homes that exchanged hands during the month, compared to 319 in September 2014, according to the board.

An example of a $730,000 property is a 1,889-square-foot, four-bedroom, two-and-a-half bath home built in 1971 in Mililani, which closed Sept. 29. At the median of $730,000, a homebuyer would need $146,000 for a traditional 20-percent down payment.

Honolulu has among the highest home prices in the nation. Low inventory, interest rates and unemployment have pushed home prices higher. Record tourism numbers and new construction have fueled the economy here.

While the American Dream of homeownership may seem out of reach for many prospective buyers, the board noted that 12 percent of the homes were sold below $500,000. “Demonstrating that there are options at all price points in the market—it just takes some looking,” board President Jack Legal said in a statement.

Prospective buyers looking in that price range will most likely head west. The bulk of the O‘ahu homes that sold below $500,000 last month were along the Wai‘anae Coast with a few scattered along the ‘Ewa Plain and Central O‘ahu.

Condo prices, meanwhile, increased 5.5 percent to $366,000, but well shy of the record $381,500 set in January. There were 480 units sold during the month, which is up 15.7 percent from a year ago.

“We are hopeful that the inventory of homes on the lower end of the spectrum will continue to grow to meet demand,” Legal said. “In fact, the nearly 16 percent increase in condo sales over last year proves that more inventory is coming online for prospective homebuyers to consider.”