Oahu Real Estate Market Poised for Growth in 2020
Lower inventory and greater buyer demand anticipated
HONOLULU – (January 7, 2019) – Locations—Hawaii’s leading real estate firm— published its end-of-year Oahu Residential Real Estate Report for 2019. This is a comparison to the previous 12-month period ending December 2018:
- The median single-family home price in December climbed six percent over the previous December to $825,000, while the median condo price rose seven percent over December 2018 to $428,000.
- These price increases in December helped to push 2019 median prices up to flat with 2018 for single-family homes and one percent for condos, compared to 2018. The single-family home market, often a lead indicator for market direction, is showing increased strength. With decreasing inventory and Days on Market returning to previous record-low levels, the single-family home market is stable and has the potential for more increases in the coming months.
- Condo sales are still six percent below last year’s levels; however, the rate of decline in condo sales is lessening, at five percent below for the month of December 2019 compared to December 2018. Months of Remaining Inventory (MRI), also called absorption, fell by nine percent for single-family homes to 2.9 months—a reflection of increased buyer demand.
- On the condo side, MRI remains 17 percent above 2018 levels, at 3.9 months—still a seller’s market. Single-family home active listings are six percent below the previous years’ levels, while active condo listings are still on the rise, at 10 percent above 2018 levels, in part due to a reaction to Honolulu City Council’s tougher stance on illegal short-term rentals.
“The Oahu residential real estate market is poised for growth in 2020,” said Jason Lazzerini, president and CEO of Locations. “We ended 2019 with stable median prices. If low interest rates continue, as expected, and inventory continues to be swiftly absorbed, we anticipate rising prices in the new year,” he added.
At the local market level, Manoa was the top-performing market for single-family homes in December. Sales of Manoa single-family homes increased by six percent. Half of all Manoa homes sold in just 17 days or less—a decrease of 26 percent compared to 2018. With 22 percent of homes sold for above the asking price, Manoa is a competitive market. With just 21 active listings in December, there were fewer homes for sale in Manoa than the previous year.
"Manoa has long been a highly sought-after neighborhood,” Lazzerini said. “Manoa median single-family home prices came down slightly in December to just under $1.2M, nudging sales in the area up as more homebuyers took advantage of the opportunity to move into this picturesque, centrally located neighborhood.”
Hawaii Kai was the top-performing condo market in December, with a six percent increase in sales and a three percent increase in median price. Competition for Hawaii Kai condos has eased, with Days on Market jumping from 17 in December 2018 to 37 in December 2019, while bid ups fell from 19.7 percent to 12.6 percent. Active Hawaii Kai condo listings were up by two percent, making now an opportune time for those looking to call Hawaii Kai home.
“We anticipate steady growth for the Oahu real estate market in 2020, with lower inventory and greater buyer demand,” Lazzerini said. As always, those looking to buy or sell a home this year should partner with a Realtor® who can provide detailed information on Oahu’s many neighborhoods and “microneighborhoods.”
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. Today, Locations has over 400 agents across the state with five offices on Oahu, one on Maui and four on the Big Island (Clark Realty). 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.
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