-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.