The first quarter of 2022 closed with new record median sales prices for both single-family homes and condos at $1,150,000 and $515,500, respectively. How did that happen?
Fewer single-family homes were sold in March and the first quarter, with the most significant decline occurring in the $899,999 and below range, down 56.3% with just 70 closings in March.
On the other end, the luxury single-family home market is picking up with 27 single-family homes sold in the $3 million and above range, marking a 68.8% jump year-over-year.
In the condo market, sales in the $700,000 to $799,999 range recorded the highest volume increase, up 125.8%, with most of these sales occurring in the Metro and Ewa Plain regions.
“More luxury sales coupled with declining affordable inventory and sales are pulling the median price upwards in the single-family home market,” said HBR President, Chad Takesue. “It’s no surprise that rising prices are pushing more prospective buyers to consider condos, driving the steady and strong demand we’ve been seeing for these properties.”
"In 100 years." is what I joked to my friend Chris who asked me this morning, "When will the market slow down?" The Hawaii real estate market has little to no inventory, which made the median home price rise to yet another new record high of $1,125,000, up 22.6% from this time last year.
The condo median sales price rose to of $497,000, up 8.6% from one year earlier.
The key is that there is no inventory, and I have no idea when that could change with more and more remote workers wanting to move to Hawaii. And it's possible that Hawaii real estate is the best hedge against inflation on Earth. What else can you count on to be there for you if we have hyperinflation, or even just modest?
Here are the numbers:
When will it slow down? I don't see a catalyst to an end of this market end for a while. Not war, not a stock market crash, not rising rates.
When will Hawaii real estate slow down? Are prices going up or down this year? I get these questions often, with so many people feeling left out of the market. In January, prices continued to rise in Hawaii, with single family median prices at over $1mil and condo median prices at over $500k.
But there is one big giant factor that many people are forgetting: There have been no Japanese people in Hawaii since 2020.
In a normal year, Japanese buyers make up between 10-20% of all the purchases made in Hawaii, but since Covid started in March 2020, nearly 2 years now, Japanese travelers have been stuck at home. From my personal contacts in Japan, I can tell you that they are chomping at the bit, anxious to get back to Hawaii and to buy real estate.
Most Japanese buyers usually buy with all cash, since they can't get a loan in the US, and they tend to offer at asking price, because looking for a bargain or a 'deal' is not the normal Japanese way. They see a price, they pay it.
I predict that 2022 will be the year they return to Hawaii, and when they do, Hawaii real estate prices, mostly Oahu, and mostly condos, will spike one more leg up. So do you want to buy before the Japanese return or after?
Not everything in Hawaii over $1million! Check out this great value in Waikiki for only $299k in Waikiki Townhouse, which is rented for $1500/month.
This corner unit 1 bed 1 bath condo has a nice renovated kitchen and the ability to use the enclosed lanai as a 2nd bedroom.
Recent upgrades include renovated kitchen and floors, and it has a washer/dryer in the unit.
And a nice city view from the living room:
If your budget is up to $300k, this is a great opportunity!
MLS 202132093, listed for $299,000 FS with a sandwich lease that expires Oct 2029.
For the last five months, the median sales price for a Single-family home has stayed between $1 Million and $1.05 Million. Although the Year-over-Year closings are down 10%, December 2021 closings were still higher than November. Median days on the market were only 11 days and sold 2% OVER the asking price. While the average sales price in December 2020 was $1.1 Million, the average sales price in December 2021 was $1.3 Million. Home prices in Hawaii continue to rise! Most sales increases were seen at the $1 million and up price points. In 2021, properties sold in the $1,000,000 to $1,499,999 range were up 84.5%, homes that sold in the $1,500,000 to $1,999,999 range were up 95.6%, and homes sold at $2,000,000 and above more than doubled, up 145.5%
Condo sales are staying strong, with new listings up 13.1%, pending sales jumping to 16.7% and total inventory in escrow rose 11.5%. Chad Takesue, Honolulu Board of Realtors President for 2022 explains, “With high demand and dismal inventory of single-family homes, buyers turned their sights to condos, driving competitive activity in some areas and leading to low supply in this market as well. As a result, every price point in the condo market saw more sales in 2021 and every region across Oʻahu marked more sales.”
Condo owners - it's a great time to sell! The market has set a new record low of only 9 median days on the market! Buyers are loving the more affordable price points of condos. While most of the sales volume occurred in the $400,000 - $499,999 range, nearly all price points in the condo market experienced a positive change in sales volume!
Single-family home sales are still rising at 21% increase over the year. They are also moving quickly at only 11 days on the market. And around 61% of single-family home sales closed OVER the asking price in November.
“It’s evident that O‘ahu buyers are entering the market well-prepared and are wasting no time, working with their REALTORS® to get their offers submitted and accepted as soon as possible,” said Shannon Heaven, president, Honolulu Board of REALTORS®. “Additionally, a large portion of sellers are receiving bids above their original list prices, which tells us that we remain in a competitive market despite the expected holiday lull.”
“Sales in both the single-family home and condo markets appear to have leveled off over the past few months. However, we continue to exceed 2020 sales, which dropped due to the initial waves and economic fallout of the COVID-19 pandemic,” added Heaven.
Hawaii's housing market is holding steady with median prices of single-family homes staying at the $1 Million mark and condos at $500,000, Closed sales for October rose year-over-year with single-family homes ticking up modestly 10.4% and condo properties surging higher to 27.3%.
Single-family home sales in the top price range of $2,000,000 and up range skyrocketed 188.2%, followed by closed sales of properties in the $900,000 to $1,099,999 range increasing 67.2% compared to October 2020.
The condo market recorded more than double the sales in the $600,000 and up range, though most of the sales were in the $300,000 to $599,999 range. The largest sales volume growth comes from the Metro region with 343 condo sales in October, rising 68.1% or 139 sales from last October. So far this year, closed sales of single-family homes and condos are up 22.6% and 58.8%, respectively.
Roughly 62% or 236 single-family homes and around 41% or 251 condos closed above the original asking price. The median time properties spent on the market remains low: 10 days for single-family homes and 11 days for condos.
The increase in closed sales for all properties is a welcome sign that Hawai‘i families are getting their offers accepted and moving into their homes. However, a decline in new listings will likely continue with the holidays and low inventory.
The September 2021 home sales numbers are out, and home prices were 8.4% higher, while condo sales were 34.9% higher!
The number of closed sales dropped slightly compared to August, with single-family homes down 0.2% and condos dipping 8.9%, mainly because inventory is so dang low.
We had many listings receive 20 plus offers!
Roughly two out of every three single-family homes sold last month closed above the original asking price.
The median price for a single-family home was $1,050,000, and condo prices rose 7.4% to $478,000.
Around 57% of single-family homes sold in September were priced at $1 million and above, and the most volume growth occurred in the $1,000,000 to $1,399,999 range, with more than double the sales as last September.
Over asking price offers were most prevalent in the Ewa Plain region, with more than 80% of the region’s third-quarter sales over list prices.
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