Oahu Housing Inventory Snapshot as of December 31, 2022
The December 2022 Oahu Hawaii Housing Inventory Snapshot represents aggregated values based on Honolulu MLS data as of December 31, 2022. Each inventory category includes a link providing the current Honolulu MLS listings for that particular category. The prices presented in the table are average prices meaning that the presented price includes homes priced well below and well above the average list price. The table is a micro approach in that it only considers data from the past month.
The table does not provide the quantified 30-day trends for the list price, sold price, days on market or available listings. If you are interested in a more detailed table with numeric trend percentages, click here to register to receive the monthly report via email.
Overall, for the immediate term, the Honolulu housing market is doing well with average list price up from the previous month for all single family homes and condo/townhomes. Even the average sold price was up for all categories with exception for the single family home market which dropped a small 3.41 percent. In general, all categories of home that are sold occurred within a 46-day period. However, the inventory was not replenished with number of listings down. Listings do tend to fall during the winter holiday period.
As a buyer, reviewing the new term housing inventory snapshot may seem disheartening, while owners or those listing their home may feel more confident about the market performance. Good news for all, market performance is relative to the period of time being considered. At the micro level the shifts can seem astounding, unrealistic, or possibly unattainable. So lets take a broader look at the market to see if there are any significant trends to suggest that no matter the price point entering the Honolulu real estate market can provide favorable returns.
First, we expand our snapshot to consider the past or year. As of November 2022, the number of single family home and condo/townhome resales were down from 2021 with an overall drop of 16.2 percent while the median and average sales prices increased by 11.6 percent for single family homes and 7.4 percent for condo/townhomes. We learn that sales were down but price trended upwards during the past 12 months.
If we take a more macro approach and look back 38 years, the change in median sales price and average sales price are up 596.7 percent and 572.4 percent, respectively, for single family homes. The same macro approach applied to the condo/townhome market has the change in median sales price up 467.9 percent and the average sales price are 476.4 percent.
As with any investment, you do not suffer a loss until you sell. The market has oscillated in an upward direction during the past 38 years. Holding out now may yield you a little more profit or it may mean that you are entering the market at higher average list prices and average sold prices. Our recommendation is that you consult with your banker to see if you can afford to enter the market. If you don't have substantial history with a particular bank then reach out to a mortgage broker. If you start getting serious about entering the market then you may want to consult both before presenting an offer.
Ultimately the affordability for those who need a mortgage is going to make the market more challenging. Also keep in mind that no matter the market condition opportunity can present itself. For example, investors may just want out of the market for a variety of reasons and for tax purposes may be willing to list at below market values. Other times a listed investment property comes with a substantial amount of future revenue. Such opportunities only come to those who are actively looking and ready to pounce.
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If you know someone who is considering buying or selling a home, please give me a call. I provide professional and courteous service and offer decades of experience on Honolulu neighborhoods and communities. If you are considering selling, our digital marketing strategy and distributed print media ensures that your listing gets exposure. If you want to know what your home is worth in the current market Click Here, or for more personalized service, contact me directly at 808-223-0429 or email TH@Invest808.com.
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired
Good morning Theresa. Living in Hawaii has its own set of challenges. Your review of the market should have serious buyers seeking your counsel. Enjoy your day.
Jan 09, 2023 05:06 AM
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