The Oʻahu real estate market set record highs for September 2021 with the single-family home median price rising to $1,050,000, 19% higher than a year ago, and the condo median price rising by 8% to $480,000, according to the recent Oʻahu Residential Real Estate Report published by real estate firm Locations.
Other data from the report:
“The Oʻahu single-family home median price remained above $1M for the third month in a row in September,” said John Connelley, Senior Vice President of Risk Management and Principal Broker for Locations. “However, even as prices continue to be pushed upward due to a combination of strong buyer demand, low inventory and competitive market conditions, we’re beginning to see some moderating from the extremely aggressive market conditions that have defined the past year. Several market indicators are now aligning with typical seasonal trends, which could be a harbinger of a stable and steady market.”
Strong demand from both local and offshore buyers continues to fuel competition, reflected in record-low days on the market. Single-family homes entered into escrow in a median of just 10 days in September, while condos went under contract in a median of just 12 days.
Lack of for-sale inventory remains the greatest challenge to the Oʻahu real estate market. However, Connelley pointed to one bright spot for qualified buyers: A new reserved housing condo project planned for Kaka’ako.
“There is some good news for first-time homebuyers who meet reserved housing guidelines,” Connelley said. “Howard Hughes has a new tower planned—Ulana Ward Village—which will add nearly 700 units to Kaka’ako at below-market prices.”
Mortgage interest rates, which have also been a contributor to increased buyer competition and rising home prices for more than a year, ticked up above three percent for the first time in three months in September.
“We expect mortgage rates to remain historically low into next year,” Connelley said. “However, slight rate increases will help to ease pressures on our extremely competitive market.”