“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% while median prices have remained flat.”
Highlights of the market include Kaimuki where sales have increased 21% from 146 to 176 sales. Additionally, the North Shore has seen 19% more sales while median prices have increased 11% 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.”