June 2023 Monthly Newsletter Email

Sales Volume of O‘ahu Homes Picks Up Month-to-Month, Still Down Compared to 2022

Properties in both markets spend longer on the market, approximately three weeks

Hope your June is going well so far! I'm starting to notice multiple offers on listings again and it's starting to feel a little like 2022. But there are also a lot of escrow cancelations and the buyers in today's market seem very fickle in their decision making. Before when a buyer went into escrow it was like winning the lottery. Now it feels like they must be making a mistake and so they cancel at the slightest discomfort. 

For sellers it's important to find a buyer who you think will actually close instead of offering the highest amount in today's market. Inventory remains low because Hawaii homeowners are sitting on so much equity due to the recent appreciation in our market and most likely they have an interest rate at around 3% which they don't want to lose by selling. Buyers are starting to accept 6% as the new norm for interest rates and willing to stomach it for now and hope that it will go down in the future so they can refinance. 

When looking at last month's numbers it's much of the same story. Median price just down very slightly from last year, closed sales down by about a quarter, and days on market about doubled. Unless the interest rates go up further to 8%+, it looks like the worst of the market decline is already behind us. 

Each neighborhood and condominium is unique so I'd love to hear more about what is important to you so I can help offer real estate guidance backed with data. Enjoy the rest of your June!

June 2023 Market Update Video

Last Month Sales Stats

The sales volume of O‘ahu homes improved month-over-month, rising 26.0% for single-family homes and 4.3% for condos in May. However, closed sales declined 23.8% for single-family homes and 36.3% for condos compared to the same time last year.

The median sales price for a single-family home ($1,109,000) was 3.9% below the current record set in May 2022 ($1,153,500). Similarly, on the condo side, the median sales price dipped modestly by about 2.2% from $516,500 in May 2022 to $505,000 in May 2023. Despite lower sales volume, the median prices for O‘ahu properties haven’t changed much over the past year. Lack of inventory continues to drive demand as more kamaʻāina strive to become homeowners.

Single-family homes and condos spent two times longer on the market than last year at 21 and 20 days, respectively, compared to 10 days in 2022. More single-family home sales closed at the full asking price or more than in the past seven months. However, this figure changes year-over-year, as approximately 45% of these sales in May received the full asking price or more, compared to about 75% of sales in May 2022. The same is true for condos, as roughly 45% of condo sales closed for the full asking price or more compared to 65% of sales in May 2022.

Download Full Stats Report

RealTrends 2023 - America's Best Real Estate Professionals

I am so honored to be ranked #9 in Hawaii (#4 on Oahu) in transactions and #32 in Hawaii (#8 on Oahu) in sales volume! A huge mahalo to all of my clients I helped in 2022. Thank you for continuing to put your trust in me with your most important real estate decisions and giving me the opportunity to help you get the best deal possible, whether buying or selling property here in Hawaii. Real estate has helped me obtain financial freedom and I will continue to work hard so I can help more people in Hawaii do the same. 

Click To View The Full List By Transactions

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Content Corner

What's It Like Being a Realtor in Hawaii?

How's the real estate market on Oahu?

Negotiation tips and tricks for buyers!

What do my client testimonials look like?

Ward Village Tour

Why Time The Market?

How Do I Market My Listings For Sale?

Location, Location, Location or Value, Value, Value?

Recent Closings

Upper Manoa

2406 Oahu Avenue, Unit B

3 BD   3 BA   1440 SF   $1,280,000

Kakaako

720 Kapiolani Boulevard, Unit 403

2 BD   2 BA   1066 SF   $910,000

We used nearly $75,000 from Compass Concierge to fix up the property which included brand new flooring, fresh coat of paint, professional staging, new split AC units, and other electrical and plumbing work to make the home move in ready. This allowed us to achieve a much higher sales price without our buyer having to pay anything out of pocket. The borrowed amount was repaid at the close of escrow, dollar for dollar and with no extra fees or interest.

Original list price was $1,208,000 but we helped our buyer get this unit for $910,000, with nearly $15,000 in seller credits, that's $313,000 or 26% below original asking! How did we do it? We originally saw this unit late last year and submitted a low offer but backed it up with research. The seller rejected our offer but we still kept in touch. Circumstances changed where the seller needed to sell and they couldn't find another buyer so they came back to us. We stood our ground and sure enough went into escrow and closed in just 2 weeks.

Current Listings

Kaimuki

3032 Harding Avenue

4 BD   0 BA   1352 SF   $1,080,000

Upper Manoa

2406 Oahu Avenue, Unit A

3 BD   3 BA   1440 SF   $1,350,000

Rented out for the next year at $4600/mo, great investment property!

Fell out of escrow multiple times but just found a good backup buyer.

Honolulu

1212 Punahou Street, Unit 908

0 BD   0 BA   0 SF   $450,000

Waikiki

201 ʻŌhua Avenue, Unit MAKAI 1906 (NUC)

0 BD   0 BA   0 SF   $500,000

Selling the fee only, opposite of leasehold.

Selling the fee only, opposite of leasehold.

Good Buys

Aina Haina

344 Wailupe Circle

4 BD   3 BA   2484 SF   $5,000,000

Kaimuki

3856 Maunaloa Avenue

5 BD   3 BA   2084 SF   $1,200,000

Comes with plans and permits about to be approved!

Perfect fixer upper in town. Lots of square footage in place!

Real Estate in the News

The Debt Ceiling and How It Impacts Real Estate

Because mortgage rates follow 10-year treasury rates we have seen mortgage rates rise from approximately 6.5% to around 7.14%. Because the debt ceiling was raised, you should see treasury rates decrease and mortgage rates follow. This will hopefully bring rates back to the 6.5% range and eventually lower as inflation continues to come down.

Hawai‘i’s Homeowners Rank No. 1 for Average Equity Gains

Nationwide, homeowners lost equity on average during the first quarter of this year. But in the Islands, homeowners with mortgages gained on average $24,900 in the value of their homes.

Has this market update brought value to you? Email me back I'd love to hear your thoughts!

Reach out to chat!

Ben Fieman

Top 1% Real Estate Agent on Oahu
$200M+ sales, 250+ transactions

Realtor Broker | RB-23470 | MBA
Compass Hawaii, Founding Agent

M: 808.400.7007
E: Ben@Fieman.com
W: www.Fieman.com

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Compass is a licensed real estate broker and abides by Equal Housing Opportunity laws. All material presented herein is intended for informational purposes only. Information is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to the accuracy of any description. All measurements and square footages are approximate. This is not intended to solicit property already listed. Nothing herein shall be construed as legal, accounting or other professional advice outside the realm of real estate brokerage. Photos may be virtually staged or digitally enhanced and may not reflect actual property conditions.