Oahu’s single-family market is on the move, while condo activity struggles to regain momentum as the pandemic stretches on.
Most notably, sales of single-family homes in August marked a new record-high median sales price of $839,000, climbing from $790,000 at this time last year and representing a year-over-year increase of 6.2%.
The condo market cannot match pace with single-family homes as condos saw neither a year-over-year nor a month-over-month improvement in closed sales. In August, condo sales dropped 20.1% compared to last year and dipped 4% compared to July. However, median price ticked up 2.5% since last year from $419,500 to $430,000. New listings saw a slight month-over-month increase of 5.9%, but total new listings still trail 19% year-over-year. The median days on market remained steady year-over-year with condos spending 23 days on the market.
When we focus on the condo market primarily in the Ala Moana and Kakaako areas, we see a 13% decrease in new listings year-to-date compared to 2019. Closed sales are also down 31% year-to-date from 2019 however, prices only dipped 1%. Day on market increased 7% compared to last year.
Sales in the luxury buildings such as Anaha, Waiea, and Hokua have also decreased month-over-month and year-over-year. We started to see a slow down in the rate of luxury sales in 2019. In 2020, those lower numbers are even more dramatic, especially for the summer months when activity is highest. Let’s take a look at year-to-date stats for several luxury condominiums.
|Building||Year-to-Date Sales||Year-to-Date Median Price|
One Ala Moana
These declines can be attributed to the worldwide Covid-19 pandemic. The State’s shut down of tourism, decreased the number of offshore buyers, affecting luxury condominium sales. However, Ae’o saw a 121% increase in sales in 2020 compared to 2019. This is partly due to its affordability compared to the other buildings in Kakaako. There are units available under one million dollars and owner occupancy is over 50% which suggests that more local residents are in the building.
The silver lining in this market shift is the opportunity of local residents to purchase within these communities. With increased inventory and softer prices, buyers can take advantage of historically low interest rates and a more favorable market. For more information on Oahu’s luxury condominium market please contact us.