In today’s Hawaii’s real estate landscape, the latest resale figures released by the Honolulu Board of REALTORS® have showed intriguing insights into the evolving dynamics of the market.
As July 2023 unfolded, the pulse of the market encountered shifts influenced by various factors. Both single-family homes and condos experiencing fluctuations in sales, prices, and inventory.
In this article, we’ll surf into the nuanced details of the recent trends that have left permanent marks on the Honolulu real estate market.
A Slump in Sales From Rising Borrowing Costs
Elevated borrowing costs casted a shadow over buying activity within the Honolulu real estate market.
Single-family home sales witnessed a notable decline of 28.2%, while condo sales dipped 18.5% when compared to the same time last year.
The effects of these shifts wash through the market, shaping the strategies of buyers, sellers, and real estate professionals alike.
Median Sales Prices and Market Stability
Amid the moving waves, median sales prices held their ground year over year. Single-family homes demonstrated stability with a modest 1.6% decrease, resting at a median price of $1,090,000. Similarly, condos maintained their position, standing flat at a median price of $500,000.
The Longer Days on the Market
Interestingly, the days on the market followed a consistent pattern. Properties that were sold in July had a median time of 16 days on the market. This increase from the previous year shows homes are taking a little longer to sell.
The delicate balance between slower transactions and careful decision-making adds a complex element to the Honolulu real estate landscape.
Buyers Dynamics: A Shift in Perspective
Understanding how consumers are buying can help us see how the market is changing. For single-family homes, a shift is apparent: around 53% of sales now reach or surpass the full asking price, a contrast from the previous year’s 65%.
A similar story in the condo market, where 47% of sales meet or exceed the total asking price, compared to 60% last year. This dynamic setting shows how important strategic pricing and adept negotiation are.
Inventory and Contract Signings
The housing market is changing. There are fewer new listings available, but there is a slight increase in active inventory.
When compared to last year July, the market has experienced a decline in new listings, with a drop of 28.8% for single-family homes and 15.4% for condos.
However, there has been a modest 2.6% growth in active single-family home listings and a notable 9.9% increase in active condo listings year-over-year.
NEW LISTINGS
ACTIVE INVENTORY 
Contract Signings
Even though there has been a weakening of contract signings throughout the past year, the housing market still saw a 6.9% increase in contract signings for single-family homes and a 1.4% modest increase for condos in July 2023.
There were 247 pending sales for single-family homes and 421 for condos during the month.
Notable Changes
Some regions saw even bigger changes. Ewa Plain, Waipahu, and Pearl City all had significant increases in contract signings, with 18.5%, 18.8%, and 13.3% increases respectively.
The Leeward region had the biggest increase, with a whopping 92.3% surge in condo contract signings year-over-year!
Take note of Ewa Plain condo pending sales. They had a significant increase of 38.2% compared to the previous month.
Conclusion
Amid these intricate movements, the market’s transition shows opportunity. Staying up-to-date on the latest market trends is key if you’re thinking about buying or selling a home in Honolulu.
With the right guidance you can take advantage of the current market and make the best decision for your needs.
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