Feb 2025: Condo buyers gain the advantage as inventory rises

The median price of a single-family home on Oahu reached a record high of $1,185,000 in February, increasing more than 10% from February 2024, while sales volume dropped 6.7%. Unlike previous record-setting periods marked by heightened buyer competition, the less active sales volume suggests a more-evenly balanced market.

The percentage of the original list price received on a single-family home was 98.0% (median) in February, compared to three years ago when sales were 102.2% over asking (when the previous record-high MSP of $1,153,500 was sent in May 2022). The median number of days on the market last month was a quick 23 days, homes selling a full week faster than a year ago. Pending home sales in this segment were also down 13.4%.

In contrast, the median sale price of a condo dropped 3.6% from February 2024, and condos are taking longer to sell, with the median days on the market up to 48 days from 39, compared to this time last year. While condo inventory is up 3.4% offering more options for buyers, pending condo sales are down 2.3% from a year ago.

The National Association of REALTORS® recent housing statistics show home sales volume is up 2%, median sales prices up 4.8% and inventory is up around the country in January, compared to the first month of 2024.

A breakdown of Oahu single-family sales by price range reveals a shift in the sales distribution, which drove February’s new record-high MSP. Homes in the $1.1 million-to-$1.39 million price range made up 27% of SF sales last month, rising from 21% a year ago. At the same time, transactions in the $899,999-and-below range dropped to 22% from 30% a year ago.

“If you’re looking to buy a home under $1 million on Oahu, there are five Oahu neighborhoods where homes are available below that mark,” says Mike James, president of Coldwell Banker Realty. “Ewa Plain, Makaha-Nanakuli, Mililani, Wahiawa, and Waipahu all reported median sales prices under $1 million. Ewa Plain had the highest number of single-family homes sales in January. And nearly 50% of new condo listings in January were priced between $300,000 and $599,999.”

Sales of Single-Family Homes and Condos | February 2025
Source: Honolulu Board of REALTORS®, compiled from MLS data

Single-family homes sales volume decreased by 6.7% in February, with 167 homes sold compared to 179 in February 2024. And while there were fewer new SF listings last month, overall, the total active inventory of single-family homes was up 21.5% to 728 homes listed, compared to 599 in February last year. Despite fewer single-family sales in February, and double-digit inventory increases over last year, prices were pushed to a new high.

The Ewa Plain had the highest number of single-family sales last month with 33 transactions. Homes sold the shortest number of days in Kailua – Waimanalo and in Hawaii Kai, with 9 days and 11 days, respectively.

Condo sales volume was off 12.3% last month, from 334 transactions closing in February last year to 293 condos closed last month. Condo inventory increased dramatically with a 55.6% increase in supply, from 1,388 available units a year ago, to 2,160 units listed last month. These stats point to a more traditional supply and demand model: When supply (inventory) is low and demand (sales volume) is high, prices tend to increase. When supply is high and demand is low, prices tend to decrease.

Median Sales Price of Single-Family Homes and Condos | February 2025
Source: Honolulu Board of REALTORS®, compiled from MLS data

Single-family MSP shot up 10% from $1,075,000 in February 2024, while condo prices in February were down 3.6% to $494,000, from $512,500 a year ago. With the recent instability in the economy, investors may perceive real estate as one of the safest places to put their money.

MARKET SPOTLIGHT

This month’s spotlight is on the most affordable Oahu neighborhoods. If you’re wondering where single-family homes are selling for under $1 million, and condos are selling for under $500,000, here’s the list. Happy hunting.

For an up-to-date market analysis of your property, contact me today. I am happy to provide you with a current valuation on your home or to discuss a potential home purchase.

SOURCE: Honolulu Board of REALTORS®, compiled from MLS data.