Sales of Oahu High-End, Mid-Market Homes Close Out 2020 Above Previous Two Years
Mid-market homes sold faster, commanded higher percentage of asking price
HONOLULU – (January 29, 2021) – There were less than 500 single-family homes for sale on Oahu at the end of 2020—the fewest ever recorded. Despite scant inventory, however; sales of homes above $750,000 were higher in 2020 than in the previous two years, according to the latest research from local real estate firm Locations.
“Demand for entry-level and mid-market single-family homes has been outstripping supply for many years,” said President and CEO of Locations Jason Lazzerini.
“There are now fewer single-family homes for sale on Oahu than at any other time since Locations began tracking the for-sale market 40 years ago. Prospective buyers looking for a home in these price ranges will face stiffer competition than in recent years; however, with interest rates below three percent, some buyers may be able to stretch into a higher price bracket, affording them slightly more choices,” Lazzerini noted.
In 2020, there was a total of 2,351 sales of mid-market single-family homes (between $750,000 and $1,999,999). In 2019 and 2018, that count was 2,068 and 1,959, respectively. Mid-market single-family home sales rose by 20 percent from 2018 to 2020, while the median price for single-family homes rose by 5 percent during that same period. Single-family homes in the mid-market bracket also sold more quickly in 2020 than in the previous two years—with a median Days on Market of just 14, compared to 22 in 2019 and 19 in 2018.
Mid-market homes also received a higher percentage of sold-to-listing price—100 percent—in 2020, compared to 99.35 percent and 98.83 percent in the previous two years, an indication of increased demand. Sales of high-end and larger homes with a sold price of $2M and above also climbed in 2020, ending the year with 195 sales, compared to 153 and 168 in 2019 and 2018, respectively. Unlike mid-market homes however, home sales above $2M were slower to sell in 2020, with a median Days on Market of 64, compared to 50 and 44 in 2019 and 2018, respectively.
“We saw an uptick in demand for high-end single-family homes in 2020, for several reasons. With the COVID-19 pandemic allowing many people to work remotely, there’s been an influx of high-end buyers of second homes and vacation homes looking to hunker down in Hawaii. We’ve also seen growing demand from locals for larger homes to accommodate remote work and school, as well as multi-generational households,” said Lazzerini.
There were fewer sales of entry-level homes (less than $750,000) in 2020—just 1,374, compared to 1,602 in 2019 and 1,576 in 2018. However, this a reflection of shrinking inventory, not waning demand. There was less than two weeks of available inventory for entry-level homes last year, compared to 1.5 months in 2019 and 1.9 months in 2018. Nearly one in three entry-level and mid-market single-family homes were bid up above the asking price in 2020—the highest for entry-level homes since 2017, and the highest ever for mid-market homes.
“2021 will be an excellent year for sellers across the price spectrum,” Lazzerini added.
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 more than 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 nearly 250 agents in five offices across Oahu. 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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