Oahu’s housing market, saw some modest adjustment in July. 

🌺Aloha～

Hope everyone has a great summer time.

We were very fortunate that the tsunami didn’t impact Oahu on July 30th, following the major earthquake near Russia. Although Kahului in Maui and Hilo on east side of Big island experienced tsunami activity, there were no significant damages. 👍

Here is July’s Housing market stats!

🌺 アロハ～

皆さまが素敵な夏を過ごされていることと思いますが。年々日本の夏は暑すぎているようですので体調には十分気を付けて下さい。

7月30日にロシア付近で発生した大地震の影響による津波が、オアフ島には影響を及ぼさなかったことは本当に幸運でした。マウイ島のカフルイや、ハワイ島東部のヒロでは津波の影響が見られましたが、大きな被害は報告されていません。👍

こちらが7月の住宅市場統計です！

December 2024 Oahu Real Estate Market Stats

The real estate market continues to show positive sales momentum as we move through 2024. Buyer demand remains robust, indicating an increase in sales activity and a moderate rise in price this year. Despite ongoing challenges such as high home prices, limited inventory, and fluctuating mortgage rates, we anticipate moderate growth this year.

According to a report from the University of Hawaii Economic Research Organization on December 13, a household needs to earn twice the statewide median income, or approximately $200,000 annually, to afford a median-priced single-family home in Hawaii. This highlights the economic pressures facing potential homeowners in our market.

不動産市場は2024年を通じてポジティブな動向が続いています。バイヤーの需要は依然として強く、今年も住宅販売の増加と価格の緩やかな上昇が予想されます。高額な住宅価格、限られた在庫、変動する住宅ローン金利といった課題が続いているにもかかわらず、今年は緩やかな成長が見込まれています。

ハワイ大学経済研究機関の12月13日の報告によると、ハワイで中央値価格の一戸建て住宅を購入するには、州全体の中央値の2倍、約20万ドル（約３千万円）の年収が必要です。これは、潜在的な住宅購入者が直面している経済的圧力を浮き彫りにしています。

The e October Oahu Real Estate Market shows signs of stability.

The number of closed sales increased by 20.3% for Single-Family Houses and 10.7% for Condos/Townhouses compared to last month.

Year-over-year, Single-Family House sales are up by 22.5%. While Condo/Townhouse sales have lagged, Single-Family House sales are leading the market.

Despite this, the median and average sales prices for both Single-Family Houses and Condos/Townhouses have remained stable.

Condo/Townhouse inventory in October, is showing a 3.7% increase from the previous month.

Post the U.S. Election looks pretty good.  Stock market keeps respectably firm and Federal Reserve cut interest rates by a 0.25% on 11/7/2024.

The Federal Open Market Committee lowered its benchmark overnight borrowing rate by a quarter percentage point to a target range of  4.50%-4.75% on November 7th.

-Oahu Housing Market for 3Q 2024

Oahu housing market showed signs of resilience and stability in the 3Q for 2024.
Despite economic uncertainties, the demand for housing remained robust, driven by local Buyers and Mainland investors. Average Sales Price and Median Sales Price have been maintained.

For September 2024, condo active inventory was spiked.  Living in paradise comes with challenges, especially for condo owners.  A significant concern facing Hawaii’s Condo owners is the rising cost of homeowner’s insurance, particularly Hurricane coverage.  Condo properties raise their HOA monthly fee by 300% to 800% and impose special assessments to cover the insurance gaps.

June saw a modest increase in single-family home sales, up by 4% year-over-year. However, June condo sales experienced the largest year-over-year decline this year, dropping 24.5% from last year.

In the first half of the year, single-family home sales grew 6.7% compared to the same period in 2023, while condo sales declined by 5.8%.

Median sales prices for single-family homes reaching $1,120,000, up by 6.7% and condos ending June at $530,000, up by 3.9%.  Year-to-date, median sales prices saw moderate changes from a year ago. The single-family home year-to-date median price rose by 3.3% to $1,085,000, while condos experienced a 2.0% uptick to $510,000 compared to the previous year.

Single-family homes moved swiftly, marked by a median of 15 days on the market, compared to 17 days in June 2023. In contrast, condos took longer to sell, with median days on market of 26 days, up from 18 days last year.

334 new single-family home listings and 622 new listings in the condos market, marking 3.1% and 16.3% year-over-year increases. Year-to-date, both markets saw new listings rise by 10.5% for single-family homes and 16.8% for condos compared to last year.

Active inventory for single-family home and condo markets modestly grew month-over-month, rising 2.0% and 4.7%.  Compared to a year ago, single-family home inventory increased by 7.9%, totaling 653 properties. The primary growth in active inventory was seen in single-family homes priced at $1,100,000 and above, where listings rose by 21.1% to 442 compared to the previous year. In contrast, condo inventory surged by 49.2% to 1,729 units, driven by increased new listings amid a slight decline in total sales. Active inventory in the $300,000 to $499,999 price range skyrocketed, with listings more than doubling to 556 units, up by 103.7% from the previous year.

The main reason of the condo’s inventory surging is an INSURANCE issue.   It’s been a bad year for Hawai’i Condominium Associations, with many seeing the price of their master insurance policies increasing 300% or more in one year. A few buildings saw those premiums increase by an extraordinary 900% to 1,300%. It’s unlikely to get better any time soon.