01/07/2024
In 2023, I've noticed the impact of rising mortgage rates and limited inventory on O‘ahu's housing market. The latest data reflects a continuous trend, highlighting key shifts from December 2023 and a broader view of the year.
In December 2023, some notable observations include a persistent decline in sales volume. Single-family home sales have been decreasing for 23 consecutive months, while condo sales have seen a decline for 19 straight months. Specifically, the median sales price for single-family homes dropped below $1 million, settling at $996,500, marking a 5.1% decrease from December 2022. Conversely, condos experienced a slight rise, with the median sales price increasing by 1.5% to $510,000 compared to the previous year.
Interestingly, while new listings surged by 9.8% for single-family homes, condo listings saw a decrease of 5.9% in December 2023 compared to the previous year. Fran Gendrano, president of the Honolulu Board of REALTORS®, highlighted the fluctuating mortgage rates, mentioning a peak in the fourth quarter followed by a decline in November and December. Despite the higher rates compared to the previous year, there was a slight uptick in contract signings, indicating ongoing buyer optimism and activity.
Comparing the data to 2022, it's evident that O‘ahu's home sales fell significantly in 2023. Single-family home sales dropped by 26.3%, while condo sales fell by 28.0%. Median sales prices also experienced a dip, with single-family homes ending the year at $1,050,000 (a 5% decrease) and condos at $508,500 (a marginal 0.3% decrease).
Moreover, properties spent more time on the market, marking an increase of 83% for single-family homes (22 median days on market) and 75% for condos (21 median days on market).
Gendrano emphasized the market's cooling trend, stating that the impact of rising mortgage rates and limited inventory persisted throughout 2023. The slower pace in sales compared to the pandemic-induced frenzy of previous years continued, making 2023 a year of adjustment for O‘ahu's housing market.
