Real Estate Update (based on HBR Data released on 9/6/22)

INTEREST RATES

We’ve all heard that interest rates have increased and of course, this impacts homebuyers. This week we’re seeing national 30-year mortgage interest rates above 6% for a 30-year mortgage, and then if you’re willing to pay for points to buy down the rates (in our local market) banks are advertising 5% – 6%.

HOME PRICES

Prices are up and they are still high.  The Honolulu Board of Realtors reported the single-family median sales price in August was at $1,125,500 vs. $1,107,944 reported in the prior month, this is a $17,500 increase and is still over a million dollars. Condos and Townhomes are at $498,500 this month vs $500K as reported last month.

PENDING PROPERTIES – Sales are slowing

We’re seeing current pending or properties in escrow decreasing steadily and YTD pending sales are down 17.5% for single-family and 9.7% for condos.

SELLERS – DAYS ON MARKET

This year, properties on the market are still selling pretty quickly, days on market is how long a property is on the market before it is sold and right now it is at 13 days (up from 11 last month) for Single-family and 13 days for condos (up from 12 last month). Year to date for 2022 we’re still at 10 (last year was 9) and 11 for condos (better than last year when it was at 13).

MARKET PACE – HISTORICALLY STILL HEALTHY

There were 17.9% more single-family home sales last year than the year before (our lockdown covid year 2020).  And annually, the median sales price was up 19.3% to $990,000 year over year.

And when you look back at all housing sales data from 1985, the highest number of total closed sales was significantly higher than last year back in 2004-2005.  Then the lowest number of sales within the last 20 years was right in that 2008-2010 range.

For condos sales, 53.1% more were sold last year than the year prior and the median sales price also bumped up 9.2% to $475K likely because last year several new condo projects such as Azure (429 units), Aalii (751 units) and The Central (513 units) – all together, just under 1700 units (Total 1,693) closed with the building completions in 2021.