May 2022 Oahu Market Report

According to resales figures released today by the Honolulu Board of REALTORS®, the single-family home market started to cool with closed sales dropping 15.1%, while the demand for condos remained steady with closed sales rising 15.1% compared to May 2021. Both markets saw median sales prices continuing to tick upwards, setting new records, with single-family homes reaching $1,153,500 and condos hitting $516,500.

Single-family homes in the $600,000 to $999,999 price range represented the most significant decline in sales activity, dropping 41.2% compared to one year ago. Most regions across O‘ahu experienced a dip in sales, except for the Central region of Mililani and Wahiawa, which ended the month on a high note with a 61.9% increase in sales.

Condos in the more affordable price range of $300,000 to $599,999 represented 48.0% of closed sales in May, with a volume increase of 13.4% from one year ago. Condo sales in the $700,000 to $899,999 range more than doubled compared to May 2021, representing 17.6% of May closings. The Metro region accounted for the most significant increase in condo sales, up 21.9%, while the Ewa Plain area saw sales decline by 20.3%.

“As interest rates and median sales prices rise, the question of what people can afford is clearly impacting market dynamics,” said Chad Takesue, president of the Honolulu Board of REALTORS®. “We see this reflected in the active inventory of single-family homes, which
rose 39.8% from a year ago. Though we’re still lagging behind pre-pandemic levels, this increase in much-needed inventory gives prospective buyers more options to choose from across the various price points.”

On the other hand, activity inventory for condos was down 4.5% year-over-year, though it edged up 2.4% compared to April 2022.

Overall, new listings ticked up in each market in May, increasing 3.5% year-over-year for single-family homes and 0.6% for condos. The Ewa Plain marked the largest increase in new single-family home listings for the month, up 16.1%, while listings in the Kāne‘ohe region dropped 34.1%. Not only were condo listings only marginally up from last year, but also new listings were unevenly distributed across various price points. New condo listings priced at
$499,999 and below fell 14.9%, while new listings in the $700,000 to $1,999,999 range saw the greatest increase of 45.5% over last year.

Sales of single-family homes and condos are moving at a near-record pace, with properties spending a median of 10 days on the market in May. Sales closing above the original asking price continued in May, with 217 single-family homes and 313 condos selling for more than the original asking price. For single-family homes, this represents 63% of the month’s sales and 45.5% of May condo sales.

“Both markets continue to experience two trends: properties selling at a near-record pace of fewer than two weeks and buyers bidding over the asking price to secure their desired property,” added Takesue.

Total contract signings fell in May as single-family home pending sales dipped 17.4%, and condo pending sales dropped 14.0%. Condos in the lower price points marked the most significant decline in the $499,999 and below price range, falling 27.5% compared to the same time last year. However, as pending sales have slowed, so too has the portion of new singlefamily home listings in escrow or sold by the end of the month, declining to 47.4% in May 2022 compared to 66.7% in May 2021. For condos, 50% of the newly listed condos were in escrow or sold by the end of the month, compared to 55.9% last year.

(Source: Honolulu Board of Realtors)