December Market Report

December Market Report

Rising Mortgage Rates, Limited Inventory Cool O‘ahu’s Housing Market in 2023

Elevated mortgage rates and limited inventory continue to have the most outsized impact on our local market. Our latest report summarizes the newest residential real estate data, looking back at 2023 and the latest from December 2023.

• Sales volume declined for the 23^rd consecutive month for single-family homes and the 19^th straight month for condos.
• The median sales price for a single-family home dipped below $1 million, finishing the month at $996,500, a 5.1% decline from December 2022 at $1,049,500. Conversely, condos experienced a slight increase in median sales price, rising by 1.5% to $510,000 compared to the same time last year.
• New listings increased by 9.8% year-over-year in the single-family home market, while condo listings decreased by 5.9% compared to December 2022.

“Average mortgage rates peaked early in the fourth quarter of 2023 and dipped in November and December,” said Fran Gendrano, president of the Honolulu Board of REALTORS^®. “Though the rates are still higher than this time last year, we saw slight increases in contract signings for both markets, which tells us that buyers are still optimistic and active in their pursuit of a new home.”

Compared to 2022:

• O‘ahu home sales fell by more than a quarter in 2023, with single-family home sales falling 26.3% and condo sales falling 28.0%.
• Median sales prices for properties dipped modestly. The median sales price for single-family homes remained above $1 million, ending the year at $1,050,000, a 5% decline. Meanwhile, the median sales price for a condo was $508,500, a marginal 0.3% decrease.
• Properties spent longer on the market. Single-family homes marked a median of 22 days on market, an 83% increase, and condos marked a median of 21 days on market, up 75%.