Honolulu Real Estate Market Report - Q4/2023

Are you considering a move to Honolulu and wondering how the city's real estate market looks? Home buying in Oahu can be an expensive endeavor with some of the highest housing prices in the nation. As temperatures drop and 2021 winds down, December can provide insight into where the real estate market stands within this vibrant city. Our team of experienced professionals at Team Wong Hawaii has prepared the following report for potential buyers or sellers looking to get on board before 2021 is over. Prices remain strong despite a decrease in newly listed properties - good news for those wanting to invest today! With unique tips geared towards navigating December's housing supply plus statistics on closed sales and median house prices, let us equip you with all the essential knowledge needed for your next real estate decision when it comes to lovely Oahu!

Overview of Honolulu Real Estate Market Report

The Honolulu real estate market is experiencing significant fluctuations in both sales activity and median home prices. In November 2023, the median sale price of homes in Oahu dropped -1.5% down to $638,772 compared to the same month last year.

Furthermore, single-family homes experienced a 46.6% decrease in year-over-year sales from October 2023 while condo sales have also declined significantly throughout 2020/2021. The current housing supply stands at 1,067 with an average days on market of 37 for most properties listed on multiple listing services (MLS).

Asking prices have also seen little growth over the past several months as buyer demand remains subdued amidst high mortgage rates and heightened risk aversion among potential investors.

Market Statistics

Gain a comprehensive view of the Honolulu real estate market’s performance in December 2023 with an in-depth analysis of median sold price, available housing supply, total homes sold, and asking vs.

sold price fluctuation.

Median sold price

The median sold price in Honolulu for November 2023 dropped to $638,772, a 1.5% decrease from the previous year. This trend indicates an overall downward shift in property values throughout the market with prices across all asset classes falling year after year since 2018.

In particular, single-family homes saw the greatest reduction at 4%, while condominiums experienced an increase of 7%. This discrepancy is likely due to high demand and low supply in Oahu’s condo market driven by growing tourism numbers and strong investor interest respectively.

It's also noteworthy that mortgage rates have been fairly stable over this same period not greatly impacting affordability levels within the area; making it a good option for those looking to invest or buy their first home on Oahu.

Housing supply

The Honolulu real estate market is currently experiencing a healthy supply of homes for sale, with 1,617 listings in November 2023 - an increase of 1.6% from the previous month. Despite a slight decline in sales activity compared to the same period last year, demand remains strong and house prices continue to rise moving into December 2023.

This upward trend can be attributed partly to the influx of potential investors and buyers entering or looking to enter Hawaii's live housing market for both investment purposes and residential purchases.

Meanwhile, current mortgage rates remain low, which has eased affordability while making investments more attractive and virtually risk-free. Moreover, high appreciation rates make it beneficial for prospective sellers to put their properties on the market now as opposed to later to capitalize on increased value over time as economies around Oahu stabilize further under nationwide expansion efforts and industry trends that will carry into 2024.

Number of homes sold

The Honolulu real estate market experienced a 3.3% upswing in home sales during November 2023 compared to the same period last year. The island of Oahu accounted for over half of these sales, with an impressive surge of nearly 6%, while Maui and Kauai experienced modest declines due to limited availability of properties.

In total, more than 2,000 homes sold throughout Hawaii in November alone - a positive indicator that Honolulu is actively meeting demand from potential buyers.

For comparison purposes, the median days on the market decreased significantly as well during this time frame - indicative that sellers are accepting offers much faster than in previous months or years as competition for available housing continues to grow amidst limited supply options.

Asking price vs. sold price

In general, asking prices for Hawaii's real estate are typically lower than the actual selling price. Due to high demand and a competitive market, many sellers have been able to ask for more than they originally planned.

However, this trend has recently shifted in Honolulu according to the December 2023 Real Estate Market Report. This month showed that while 9% of homes sold closed at full asking price or higher throughout November 2023, approximately 38% of properties sold above their initial asking prices.

In May 2023 only 45% of condos ended up closing at the full or over asking price compared to 65% from one year prior in 2022. Largely due to an increase in inventory and somewhat flattening appreciation rates overall home sales decreased 11%.

Featured Real Estate Guides

Get an inside look at the top hidden gems in Honolulu and discover helpful resources to assist with your real estate decisions. Learn about Oahu's neighborhoods, cultural landmarks, Christmas light displays, and more for December 2023.

7 Best Christmas Lights on Oahu

Oahu is the place to be for holiday lights during Christmas time. From tree lighting and block parties to electric light parades, it doesn't get much better on islands. Here are seven of the absolute best places you can see some stunning seasonal decorations.

1. Honolulu City Lights: The largest seasonal event in Hawaii, this is a must-see packed with colorful lights displays throughout downtown Honolulu and Chinatown. Take a 20-minute drive around Aloha Stadium and its million LED lights – perfect for getting into the spirit!

2. Maunawili Valley Estates: A little out of central Oahu but worth the drive; head down Kalanianaole Highway for an amazing display of houses wrapped up in thousands upon thousands of twinkling stringed fairy lights that adorn doorways, balconies, bridges— all brilliant colors!

3. Kako’o Beach Park: This spot in Kaneohe has become famous for featuring dozens of life-size illuminated statues choreographed to classical music tunes like ‘ The Nutcracker Suite’; grab blankets and your loved ones as you enter another winter wonderland at this unforgettable show!

4. Ko Olina Station Shopping Center: For over 15 years now, between mid-November through December 23rd Ko Olina goes all out on their decor with more than 40 different scenes glowing brightly - there are even two real reindeer making guests appearances every Saturday night until Christmas Eve!

Neighborhood guide for December 2023

The Honolulu real estate market in December 2023 is continuing to show signs of cooling, with housing prices remaining lower compared to the same period last year. This month, buyers can expect a mid-level supply of homes for sale across Oahu, coupled with moderately higher median days on the market versus November 2022.

Overall sold prices for single-family homes and condos have remained relatively stable from this time last year; however, there may be potential opportunities for capitalizing on favorable terms if sellers are willing to negotiate.

For those in search of neighborhoods offering access to local holiday attractions, West Hawaii may be a great spot this season. For example, the Kaloko estate area has been quickly gaining popularity due to its proximity to the 7 best Christmas lights displays around Oahu island as well as many beaches nearby that could offer an amazing holiday getaway option.

Market Update

November 2023 single-family and condo sales reflect a decrease of 6.5% compared to the same period last year, with median days on the market increasing from 15 to 16 days. This indicates a buyer’s market as sellers face sharper competition when listing properties.

Sales activity in November 2023 compared to the previous year

In November 2023, the Honolulu real estate market saw a significant decrease in both home and condo sales when compared to the previous year. According to data from the Honolulu Board of Realtors, total residential properties sold decreased by 9%, while condo sales fell 10% over the same period.

These declines can likely be attributed to stagnant economic factors such as rising interest rates and static median prices seen throughout much of 2019-2022. Moreover, areas with greater concentrations of luxury homes – particularly on Oahu's North Shore – have been particularly hard hit with fewer buyers due to shifting market trends and preferences.

Ultimately, although there was an overall drop in activity for November 2023 when compared with pre-existing years, demand remains strong within various segments across all neighborhoods including Waikiki and Diamond Head where vacation rentals are experiencing high absorption rates since travel restrictions eased thanks largely to improved vaccination efforts worldwide.

Median days on market

The median days on market for homes in Honolulu was 29 days in November 2023, compared to 18 days the previous year – a significant increase of 11 additional days. This indicates that the number of sale agreements is taking longer than it had previously to be finalized; this could likely indicate that buyers are extra selective during their search process and conservative when entering into any contracts.

Housing prices have been increasing across Oahu over the past several months, leading many potential homebuyers to take their time before making an offer and also possibly causing some sellers to hold out for better offers from more competitive buyers.

Although there is a lot of activity in the Honolulu real estate scene, it seems as if slower sales times may be what homeowners should expect for now.

Honolulu Board of Realtors Monthly Statistics

Gain valuable insights into the Honolulu real estate market with a comprehensive analysis of recent monthly trends, current mortgage rates, and historical data. Learn more about what to anticipate for December 2023 and how it might affect your investment decisions.

Trends and forecast for December 2023

The Honolulu real estate market is expected to remain relatively unchanged in December 2023 when compared to the previous month. According to the most recent statistics from the Honolulu Board of Realtors, Oahu saw a drop in home sales of -9%, and condo sales decreased by -10% last November.

The median days on the market for homes increased slightly by 8%. On-island housing supply levels dipped slightly with 1,617 homes available for sale this past month--a 1.6% decrease compared to October 2023.

This stability in demand and housing prices coupled with declines in inventory could spell good news for potential buyers looking at an established yet competitive market, or provide sellers an ideal time to capitalize on stable pricing before August 2024 typically sees heavy tourism activity driving up prices along key routes.

Impact of current mortgage rates

In December 2023, mortgage rates in Honolulu saw a slight decrease for the first time since the start of the year. The average 30-year fixed-rate loan was 6.90%, while 15-year fixed mortgages averaged at 6.27%.

This downward trend provided advantageous conditions for potential home buyers and sellers alike, as it made housing more affordable compared to previous months.

The real estate market in Honolulu reacted swiftly to this shift with an influx of pending sales across all major markets – both residential and commercial segments saw marked increases throughout December.

In addition, competitive prices are beginning to rise as homes hit multiple offers quickly due to web visibility created by extensive marketing campaigns from agents and brokers throughout Oahu.

With more prospective homebuyers entering into the market due to lower interest rates and more homeowners listing their property at attractive prices, there is a visible increase in demand resulting in higher closed sales figures when compared with November statistics of 2023 - up by 10% when compared on a month on month basis - despite already being up 28% over 2020 period of corresponding period preceding it.

Oahu historical sales data

Oahu's real estate market has undergone tremendous amounts of change over the past 12 years. For potential homebuyers and sellers, understanding this historical data can provide very insightful information to help make informed decisions in the current market.

According to statistics by the Honolulu Board of Realtors, higher-end homes and condos continue to sell despite economic downturns and natural disasters affecting other areas of Hawaii.

The sales volume improved month-over-month for single-family homes in May 2023, indicating a steady trend over time.

Realtors also offer access to Oahu's historical sales data which includes detailed analytics on median prices, housing supply levels, number of homes sold within certain locations or areas based on land area size as well as year built.

This highly comprehensive set of filter criteria allows buyers or investors to paint an accurate picture when researching for their ideal property while sellers can easily track buyer activity from previous periods before putting up their properties for sale on the open market.

Conclusion

The real estate market in Honolulu is showing growing signs of stability, though overall activity remains subdued. In November 2023, sales activity decreased -9% for homes and condo sales decreased -10%, indicating a slight slowdown from the preceding year.

The median sold price sits at $1,050,000 for homes and condos while more inventory has come onto the market with a 1.6% increase to 1,617 homes available in November 2023 compared to October 2023 Since September 2019 the median home price in Hawaii has increased by 36.79%.

Asking prices continue to be higher than sold prices compared to this time last year as buyers are demanding more due diligence before concluding transactions. Overall, despite these minor downturns, Oahu looks promising into December even with conditions remaining uncertain depending on how current mortgage rates evolve over this month.