A silver lining may emerge as the real estate market on O'ahu shifts. While mortgage interest rates and stable home prices affect the affordability of a home, it seems sellers are now willing to negotiate their prices with buyers. Additionally, the number of homes for sale on O'ahu have afforded buyers significantly more choice.
According to the Honolulu Board of REALTORS®, Monthly Statistical Report which includes home sale data through November of 2022, the number of homes sold in November declined by 48.2% as compared to the same month last year. Condos followed suit with a 43.4% decline in November. Concurrently, the inventory of homes for sale increased by a whopping 86.3% for homes and 20.4% for condos. Yet, home prices continue to remain strong. The median sales price of $1,149,500 is up 9.5% from last month and 9.5% as compared to the same month last year. Condo prices have mixed reviews, having the median dropping by 4% and the average price increasing by 6.3% as compared to last year. There are some signs that this trend may change as buyers who purchased last month were able to negotiate sellers down to 98.4% of their asking price for homes and 98.8% for condos.
While we don’t know what the future holds, we do know that demand is trending down, allowing buyers to have more choice and motivating sellers to negotiate their prices with buyers.
In a changing market, it is vital that buyers and sellers keep in touch with their agent and receive the most current market data, trends and tactics to attain their home ownership goals.
Read the full report from the Honolulu Board of REALTORS® here.