Oahu Single-Family Home and Condo Prices Hit Record Highs
Oahu home prices soar to record highs; houses reach $700,000, condos surge to $360,000.
Photo: Melissa Chang
Honolulu has reached $700,000.
The median price of an Oahu single-family home reached $700,000 for the first time in June. The mark is up 3.4 percent from the same month last year and blows past the previous record of $685,000 first reached in June 2007 and again in December 2013, according to a report released Monday by the Honolulu Board of Realtors.
Condominium prices, meanwhile, soared 9.1 percent to $360,000, breaking the record set in February of $359,000.
Julie Meier, president of the Honolulu Board of Realtors, called it a “remarkable month.”
“This shows the very strong demand we’re currently seeing for housing,” she said in a statement. “That demand, coupled with low inventory, is what’s causing the continued growth in median sales prices. We do see inventory rising, but not enough to offset the demand, especially for single-family homes.”
Honolulu’s $700,000 median for an existing single-family home is among the highest in the nation. At $700,000, a buyer would need $140,000 just to make the standard 20 percent down payment.
An improving economy, low interest rates and a lack of inventory are fueling the real estate market.
The University of Hawaii Economic Research Organization in March forecast that single-family home prices on the island will break the $700,000 mark for the first time ever this year and reach $710,500, a 9.8 percent increase over 2013’s median of $647,000. From there, it is expected to go up another 8.9 percent to $773,800 in 2015.
There were 303 homes sold in June, down from 308 sold in the same month last year. There were 411 condos that changed owners, up from the 392 sold in June 2013.
For the year, single-family home and condo prices are each up 7.1 percent compared to the first half of 2013.
Single-family homes islandwide are being snapped up quickly, staying on the market only an average of 19 days, according to the board. Condos stayed on the market for an average of 25 days.
Number of Sales: 303
Median Sales Price: $700,000*
Number of Sales: 308
Sales Compared to June 2014: -1.6%
Median Sales Price: $677,250*
Median Sales Price Compared to June 2014: +3.4%
Number of Sales: 411
Median Sales Price: $360,000*
Number of Sales: 392
Sales Compared to June 2014: +4.8%
Median Sales Price: $330,000*
Median Sales Price Compared to June 2014: +9.1%