We’re pleased to share the Oahu real estate update for April 2020.
As anticipated, the Oahu housing market is confronting challenges amid the Coronavirus pandemic, including a steep decline in sales and listings.
Closed sales for single-family homes and condos were down more than 20%, and new listings decreased by 42% compared to this time last year. However, the median sales price for single-family homes and condos rose slightly to $809,000 and $450,000, respectively.
The most sales activity for single-family homes occurred in the $500,000 to $999,999 price range. However, closed sales in this range were down 28% compared to the same time last year. Sales $1 million or more fared almost even, with a 3% decline compared to 2019.
Condominium sales across all price ranges experienced a significant drop in sales activity. The most significant drop in sales occurred in the $200,000 to $299,999 range at 56%. Mid-range sales between $300,000 to $599,999 were down by 24%, while sales in the $1 million and up category declined by 40%.
There continues to be a slowdown in the number of new listings coming onto the market due to the stay-at-home order that went into effect on March 23. New single-family home and condo listings in the $1 million and up range saw the largest declines at 51.4% and 58.1% respectively when compared to this time last year. Meanwhile, as mortgage rates continue to reach all-time lows, lenders are tightening credit standards thereby limiting the pool of buyers that can leverage this opportunity in their favor.
Only 26% of the current supply of active single-family homes were listed after the stay-athome order. Compared to the same time last year, listings put on the market made up 41% of the active single-family home inventory. Within the current supply of active condo listings, 24% of properties were listed after the stay-at-home order, compared to 37% during the same time period in 2019.
Sellers and buyers are exceedingly cautious as they juggle their perceptions and the reality of economic security amid these uncertain times. However, once consumers begin to feel some relief from the impacts of the pandemic, it’s likely we will see listing and buying activities slowly increase.