O'ahu Market Update - Prices Decline Amid a Drop in Demand
After months of demand declines, prices finally began to soften. The average sales price and the median sales price for homes took a 10.8% dive, landing at $1,139,294 and the median price for homes dropped below a million dollars ($970,000). The condo/townhome median price dropped to $495,000, which was a 2.9% decline. The average price of a condo increased slightly to $633,441 a 1.5% gain.
A softer market usually means less competition for properties, allowing the buyer time and leverage to negotiate a price with the seller. Last month, buyers paid 95.9% of the list price. While this may not seem significant, consider the fact that buyers paid 101.6% of the list price during the same month last year. That’s a 5.2% change and, if applied to the current median sales price, that equals $50,440. That is a pretty chunk of change.
For those homes that sold last month, the median days on market was still just 24. Sellers can feel comfort in the fact that properties still sell within a month and the inventory of homes for sale is dropping, which could make this buyer leverage market short-lived.
In summary, the market seems to be like a pendulum. The low inventory, and low-interest rate pandemic market swung sales high on one side of the pendulum, and now the quick rise in interest rates and prices has swung the pendulum in the other direction. As we journey through these volatile market changes, it is important to receive counsel from a professional Realtor who can guide you through these changes.
Read the full report from the Honolulu Board of REALTORS® here.