Oahu Home Prices Saw Modest Dip in 2023

Last year brought some interesting shifts to our market. Notably, we saw a decrease in home sales compared to the previous year. In 2023, there were 2,560 single-family homes sold, showing a 26.3% drop from 2022, and condo sales also experienced a decline, falling 28% to 4,573.

oahu home trends december 2023These changes, while significant, fit into a broader context. Since the peak of the Covid-19 pandemic, we've observed a gradual normalization in market activity. This shift is partly due to the increase in mortgage rates and a tighter inventory. But it's not all about numbers decreasing! The median sales prices for homes, while slightly lower than in 2022, still remained robustly over the $1 million mark, ending at $1.05 million. This is actually a 6.1% increase over the 2021 median.

Condo prices have been remarkably stable, with the median sales price in 2023 at $508,500, just a shade lower than 2022’s $510,000. And compared to 2021, this is a 7.1% increase!

Another aspect we've noticed is that homes spent more time on the market last year. On average, single-family homes were listed for 22 days, which is a notable increase from the 12-day median in 2022. Condos also saw a similar trend.

oahu condo trends december 2023Despite higher borrowing costs which have somewhat dampened buying enthusiasm, the market is still very fluid. The end of 2023 even saw a slight uptick in contract signings, hinting at ongoing buyer optimism. In December, we observed an interesting trend where the median price for single-family homes dipped just below $1 million, while condo prices saw a slight increase compared to December 2022. 

Oahu new construction homes on the rise

We're still seeing a boom of new homes on Oahu as developers continue their push for new Honolulu condos in the Kakaako and Ala Moana neighborhoods, as well as continued suburban expansion from Ho'opili and Ka'ulu by Gentry in West Oahu.

In sum, 2023 was a year of adjustment and stability for The Gathering Isle. It’s a dynamic landscape, and as your trusted real estate advisor, I’m here to help you navigate it, whether you're buying, selling, or just keeping an eye on the market. Be sure to check back to our Oahu Real Estate Report to stay connected with us and evolving market trends as retreating interest rates are projected for 2024. Here's to making well informed real estate decisions in 2024!

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