Real Estate Report - October 2023
O'ahu Market Update
We continue to move towards a balanced market, where neither the seller nor the buyer has a negotiating advantage. The Months of Supply of Active Inventory from the Honolulu Board of Realtor’s Monthly Statistical Report, is an indicator of the balance between supply and demand. For homes that sold last month, that figure was 2.7 months (3 months for condos), which means, at the current rate of sales, if no additional homes were listed on the market, inventory would be sold out in 89 days (90 days for condos). Additionally, sellers received 99% of their listing asking price last month (98.8% for condos) which could mean there was very little negotiating back and forth for those properties and Buyer did not have to bid the price up.
One statistic that was not included in the monthly statistical report, is the days on market for properties that have not sold which is 96 days. While those that sold last month were only on the market for 20 days, those that haven’t sold are in excess of 3 months on the market. That is important information for future sellers, allowing them more data to shape their expectations of the market.
Prices remained stable with the median sales price for homes settling in at $1,050,000 (down 4.5% compared to last year) and condos at $532,500. (up 6% compared to last year). Stable prices during a drop in demand means that the supply of homes for sale has equally declined. Last month, only 281 (down 7.6%) homes and 516 (down 14.1%) condos hit the market.
In summary, the market has settled into a normal non-pandemic-affected market with stable prices due to an equal decline in demand and supply.