Oʻahu home prices continue hot streak, but there are signs of stabilization
The median price for a single-family home on Oʻahu rose to $1,050,000 in September. The median price for a condominium also rose last month to $480,000.
Both are record highs for September.
That's according to the latest monthly report from Locations Hawaiʻi, highlighting Oʻahu's housing market for the month of September.
This is the third consecutive month the median price for a single-family home was above $1 million. It is primarily driven by low housing inventory and low-interest rates.
Competition remained high last month. This is reflected in 63% of single-family homes and 40% of condos sold in September selling above the asking price.
Units also spent fewer days on the market — homes spent an average of 10 days, and 12 days for condominiums.
But Locations says there are signs of stabilization.
"We're beginning to see some moderating from the extremely aggressive market conditions that have defined the past year," said John Connelley, senior vice president of risk management and principal broker at Locations.
"Several market indicators are now aligning with typical seasonal trends, which could be a harbinger of a stable and steady market."
Connelley notes that mortgage interest rates, which contributed to higher competition and increasing prices, has increased above three percent in September.
Although he foresees rates to remain low into 2022, he says slight increases could help ease pressure in the market.
But Connelley says there is some hope for home buyers with the announcement of a new condo project in Kakaʻako. He says this is especially good news for first-time buyers who meet reserved housing guidelines.
"Howard Hughes has a new tower planned — the Ulana Ward Village — which will add nearly 700 units to Kakaʻako at below-market prices," said Connelley.
But for the foreseeable future, low-interest rates and strong demand, from both local and offshore buyers, will likely continue to fuel competition and rising prices into 2022.