Oahu Median Home Prices Hit All-Time Record High in July 2019
Peak sales period and low interest rates contribute to a record month in what has been a relatively steady year for home and condo sales
FOR IMMEDIATE RELEASE HONOLULU – (August 5, 2019) – Locations—Hawaii’s leading real estate firm— published its Oahu Residential Real Estate Report for the 12-month period ending July 2019. This is a comparison to the previous 12-month period ending July 2018:
- July median prices hit all-time records for both single-family homes and condos, at $835,000 for single-family homes, up 6 percent from July last year and $460,750 for condos, up 7 percent from last year.
- Sales were strong in July, surpassing previous year levels for the second time this year; on an annual basis, combined home sales are still down 8 percent for the 12-months through July compared to last year, but the rate of decline is lessening.
- Single-family homes, often a lead indicator for market direction, are showing increased strength. With increasing sales and prices, and days on market returned to previous record-low levels, the Oahu market is stable with potential for more increases in the coming months.
- Inventory for sale continues to be a positive, with 10 percent more single-family homes and 18 percent more condos available for sale than last year.
- Interest rates remain at near-record lows, which will lead to increased buyer activity in the coming months.
“Last month, the Oahu real estate market experienced all-time record highs for both single-family homes and condos as a result of many market conditions” said John Connelley, principal broker at Locations. Conditions include the peak summer sales period, low interest rates, and continued strong demand for Oahu homes. Connelley added, “while it is easy to get excited about a big number, it is important to consider that monthly trends vary; over a 12-month basis sales are down 8 percent while median prices have remained flat.”
Highlights of the market include Kaimuki where sales have increased 21 percent from 146 to 176 sales. Additionally, the North Shore has seen 19 percent more sales while median prices have increased 11 percent to $992,750. Top performing condominium market areas are led by Makakilo and Kaneohe where both total sales and prices have increased.
Looking ahead, Connelley indicated “the market is showing signs of strength fueled by lower interest rates. Days on market for single-family homes has decreased from 25 days in January to just 18 days in July; last month condos sold in about 22 days.” Connelley added, “it is interesting to see that as inventory has increased, so too have the number of sales, thus indicating the market is still competitive with not enough supply to meet demand.” Connelley added a final note on the recent spike in inquiries about the impact of Bill 89, which as of August 1st puts new rules on short-term rentals. “Property owners will do one of three things; continue to do what they are doing now, sell the property or convert the property into a long-term rental. It is simply too early to know the impact of Bill 89 on the market.”
About Locations As the state’s oldest and leading independent real estate firm, our trusted Neighborhood Experts have served Hawaii’s families since 1969. For 50 years, Locations has helped more people buy or sell their homes than any other real estate firm in the state. With our rich kama’aina roots, innovative technology and dedicated market-research department, Locations continues to be at the forefront of this ever-changing industry. With nearly 300 agents and five offices across Oahu and one on Maui, our Neighborhood Experts live where you live. Through our non-profit, the Locations Foundation, our agents and staff support more than 100 Hawaii non-profit organizations both through monetary donations and volunteer hours. Visit LocationsHawaii.com/about-us today to learn more. For up-to-date Hawaii real estate updates, follow Locations on Facebook at: www.facebook.com/LocationsHawaii, Twitter at @LocationsHI, Instagram at @LocationsHawaii, and LinkedIn at www.linkedin.com/company/locations-hawaii. Read the Locations blog at: www.LocationsHawaii.com/news.