Everything you need to know about the O'ahu Real Estate Market in December 2023.
Rising Mortgage Rates, Limited Inventory Cool O‘ahu’s Housing Market in 2023
In December 2023, both markets continued their year-over-year decline in sales volume, marking 23 consecutive months of dropping sales for single-family homes and 19 straight months for condos. The median price for a single-family home dipped below $1 million, finishing the month at $996,500, a 5.1% decline from December 2022 at $1,049,500. Conversely, condos experienced a slight increase in median sales prices, rising by 1.5% to $510,000 compared to the same time last year.
“Average mortgage rates peaked early in the fourth quarter of 2023 and dipped in November and December,” said Fran Gendrano, president of the Honolulu Board of REALTORS®. “Though the rates are still higher than this time last year, we saw slight increases in contract signings for both markets, which tells us that buyers are still optimistic and active in their pursuit of a new home.”
Single-family homes marked median days on the market of 18 days, one week faster than December 2022. However, the condo market recorded a median days on the market of 26 days, five days longer than the previous year. December saw an 8.3% increase in contract signings for single-family homes and stable numbers for condos, up 0.3% year-over-year. Additionally, the single-family home and condo markets closed the month with year-over-year increases for total inventory in escrow, rising by 9.7% and 8.8%, respectively.
Single-family homes priced at $1 million and above saw a 21.1% decline, with 90 sales compared to 114 in December 2022. However, single-family home sales below $1 million remained relatively stable, with a modest 4.5% uptick. In the condo market, higher-priced units for sale at $700,000 and above exhibited a minimal dip in sales, recording 74 sales or two less than the previous year. In contrast, condos priced below $699,999 experienced a significant 30.3% decline in sales compared to last year, dropping to 198 sales.
New listings increased by 9.8% year-over-year in the single-family home market, while condo listings decreased by 5.9% compared to December 2022. However, active inventory showed minimal growth from a year ago, indicating buyers will continue to see limited housing inventory in 2024. At the end of December 2023, there were 600 active single-family homes, a modest 0.5% increase from the previous year, and 1,234 active condos, reflecting a 5.5% increase.
“In 2023, O‘ahu’s housing market felt the acute impact of rising mortgage rates and limited inventory. The cooling market activity we first experienced in 2022 carried over in 2023, as sales volume continued to mellow out compared to the frenzy we saw during the COVID-19 pandemic,” Gendrano added.
Compared to 2022:
O‘ahu home sales fell by more than a quarter in 2023, with single-family home sales falling 26.3% and condo sales falling 28.0%.
Median sales prices for properties dipped modestly. The median sales price for single-family homes remained above $1 million, ending the year at $1,050,000, a 5% decline. Meanwhile, the median sales price for a condo was $508,500, a marginal 0.3% decrease.
Properties spent longer on the market. Single-family homes marked a median of 22 days on market, an 83% increase, and condos marked a median of 21 days on market, up 75%.
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