The Oʻahu real estate market is experiencing shifts as we move into 2025. With inventory on the rise and demand showing signs of softening, buyers and sellers alike must navigate a dynamic landscape. Whether you're looking to buy, sell, or simply stay informed, understanding these market trends is crucial.
Single-Family Homes: Prices Rise Despite Fewer Sales
February 2024 brought noticeable changes to Oʻahu’s single-family home market. Sales dipped 6.7% year-over-year, totaling 167 closed transactions. However, despite the decline in demand, median home prices surged to a record $1,185,000, marking a 10.2% increase from the previous year.
One major factor in this price increase is the growing inventory. The number of active listings jumped 21.5%, offering buyers more choices. However, pending sales—a key indicator of future closings—declined 13.4%, reflecting a slight slowdown in purchasing activity.
Key Takeaways for Single-Family Home Buyers & Sellers
- Buyers have more inventory to choose from, giving them greater negotiation power.
- Sellers should note that demand has softened slightly, but low supply in past years continues to push prices up.
- With interest rate fluctuations still in play, timing your purchase or sale strategically is crucial.
Condo Market: Prices Drop as Inventory Grows
The condo market tells a different story. Condo sales dropped 12.3%, with only 293 transactions closed in February. At the same time, median prices fell 3.6% to $494,000, indicating increased buyer leverage.
Inventory in the condo market saw a significant increase of 55.6%, meaning more options for buyers and a more competitive environment for sellers. While new condo listings were down 20.3%, the higher number of active listings suggests some units are staying on the market longer.
Key Takeaways for Condo Buyers & Sellers
- Buyers have more choices and greater bargaining power, especially with rising inventory.
- Sellers should price competitively and be ready to negotiate to attract buyers.
- The condo market shift could be tied to interest rate concerns and fiscal policy uncertainty for 2025.
Market Outlook & Expert Advice
The Oʻahu real estate market remains dynamic as we head into the second quarter of 2025. While single-family home prices continue to rise despite fewer sales, condos are seeing price adjustments due to increased supply.
If you’re thinking about buying or selling, the key is to stay informed and work with a knowledgeable real estate professional who can help navigate the changing landscape.
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