January 2023 Monthly Newsletter Email

Oahu Home Sales Cool in 2022 Amid Rising Mortgage Rates

Single-family home and condo sales volume saw double-digit declines despite a strong start to the year

January 2023 Oahu Real Estate Market Update: Prices are staying about the same at $1,049,500 for SFH and $502,500 for condos, closed sales are way down about 40% showing a lot less sales activity, and days on market are much longer at 25 days for SFH and 21 days for condos. Interest rates have settled to about 5-6%, buyers are coming back after the holidays, and properties are not flying off the shelves like they did during the pandemic but it's much more normalized. Each neighborhood and building have their own unique characteristics so be sure to reach out for specific information. Enjoy!

Market Update Video

December 2022 Sales Statistics

In December, sales for single-family homes plummeted 46.6%, while condo sales were down 39.3% year-over-year. The median sales price for a single-family home dipped slightly to $1,049,500, while the median condo sales price rose to $502,500. 

In the single-family home market, the $800,000 to $999,999 range saw a whopping 225% increase, with 143 listings available at the end of the year compared to just 44 listings in December 2021. In the condo market, active inventory most significantly increased primarily in the mid to upper price ranges. Year-over-year, active inventory in the $400,000 to $1,999,999 price range rose by 50%.

2022 Year-End Stats 
In 2022, O‘ahu’s real estate market was marked by transition. The year began similarly to 2021 with intense competition among buyers, with mortgage rates still hovering near historic lows and ended with headwinds when these rates rapidly and sharply rose. Key highlights included:
In the second quarter of 2022, 63% of single-family homes and 44% of condos closed above the original asking price.
In May, the single-family home market set a record median price of $1,153,500; in June, the condo market hit a record median of $534,000.
Mortgage rates continued to rise through the year, with average rates reaching the 7% range in late October and ending 2022 in the mid-6% range.
In the fourth quarter, the percentage of properties sold above the original asking price had dropped to 29% of single-family home sales and 25% of condo sales.
The year ended with 3,474 single-family home sales, a 23.2% year-over-year decline. The year-end median price climbed to $1,105,000, an 11.6% increase compared to the 2021 annual median price of $990,000.
 
In 2022, condo sales also fell, ending the year with 6,353 closed sales and down by 11.8%. Year-end sales were still well above pre-pandemic sales volume dating back to 2007. The condo market ended the year with an annual median sales price of $510,000, up 7.4% from a year ago.

Download Full Stats Report

2022 Sales Recap

2022 was a grind. I am so honored for the opportunity to serve all of my clients along with their friends and family with their real estate needs. I’m so thankful for all of the referrals to help achieve another record-breaking year in sales.

I always negotiate to get my clients the BEST deal possible. I earn their loyalty by saving/earning my buyers/sellers as much as possible while looking out for their best interest. If there is someone you know who is looking to make a move in 2023, you can trust that you’re putting them in the right hands when you refer me. Wishing you all a safe, happy, and prosperous new year!

Content Corner

On this next episode of Million Dollar Listing Hawaii we tour 4615 Kahala Ave and see what $15.9M gets you in Hawaii! 🔥

How to price your home to actually sell?

How's The Market Hawaii? Come see our latest podcast with real estate, finance, and mortgage experts!

Interest Rate Increase Explained

Affordable & Reserved Housing Uncovered

Should you go lipstick or all the way when flipping a home?

Recent Closings

Hawaii Loa Ridge

779 Moaniala Street

4 BD   4 BA   3932 SF   $2,200,000

Keolu Hills

1344 Akalani Loop

4 BD   4 BA   1718 SF   $1,205,000

Hawaii Loa Ridge sold for $2.2M! My seller is elderly and there was a lot of deferred maintenance with this home so rather than fixing it up and putting it on the market he asked me to see if I could find any buyers for it. Sure enough one of my investors stepped up to the plate and purchased this home with plans to improve it and put it back on the market. 

Large Kailua home with 4 separate living units for only $1.205M! We got this home for our buyer $65,000 below asking with just 13 days on the market. We also got a very nice credit from the sellers to help take care of all of the closing costs.

Ewa Beach

91-926 Kulana Court, Unit K4

2 BD   1 BA   780 SF   $400,000

Kakaako

600 Ala Moana Boulevard, Unit 705

2 BD   2 BA   909 SF   $975,000

Ewa Apts #K4 2 bed, 1 bath, 1 parking just sold for $400,000! Who said the real estate market is dead? We ended up getting 5 offers all over asking after our first go around. The first buyer ended up cancelling at the final hour so we went back to the past offers and put it back on the market just in case there were new buyers. One of the past buyers stepped up to the plate and got the job done.

We had some issues with the funds coming in from overseas but he and his seller gave us the time needed to get it closed. It just takes a bit of creativity to make sure both sides are covered and happy in order to create a win/win situation and get it closed. It's important to work with agents who have experience in the industry so you can make sure things go smoothly when issues arise. 

Current Listings

Upper Manoa

2406 Oahu Avenue, Unit A & B

6 BD   0 BA   2880 SF   $2,700,000

Upper Manoa

2406 Oahu Avenue, Unit A

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

Upper Manoa

2406 Oahu Avenue, Unit B

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

Kailua

322 Aoloa Street, Unit PH1

3 BD   2 BA   1229 SF   $1,200,000

Kaimuki

1139 9th Avenue, Unit C107

0 BD   0 BA   227 SF   $170,000

Kakaako

425 South Street, Unit 302

2 BD   2 BA   1195 SF   $625,000

LAST CALL for Alia Kaka'ako!!!

LAST CALL for Alia in Kaka'ako! The friends and family release will be completed in a matter of weeks and then it will go out to the public. This will be the best possible pricing and no restrictions on the units. However, you must schedule a presentation with me to learn about the project and give your preferences to see if there are any units left. Contact me ASAP to get a copy of the floor plans and pricing.

Real Estate in the News

5 Things You Should Know about Capital Gains Tax

A capital gain occurs when you sell something for more than you spent to acquire it. This happens a lot with investments, but it also applies to personal property, such as a car. Every taxpayer should understand these basic facts about capital gains taxes.Click to view article.

6 reasons why Compass CEO believes Q42022 was the bottom of the recent market cycle

25% increase in weekly mortgage applications.
Mortgage rates continue to move down to a 4-month low.
Increase in buyer interest, open house traffic, and offers.
In the last quarter of 2022, 42% of sellers were giving concessions to buyers at the closing table, a 10-year high.
Home builder sentiment improved for first time in 1 year.
Pending closings were down 30+% at points in the fall but over the last few weeks, we have seen pending listings in most of our markets nearly flat year over year. Watch CNBC Segment.

My business is built on referrals from people like you so if there's anyone you know of that I could help with their real estate goals please don't hesitate to ask. Ready to achieve your next real estate goal?

Reach out to chat!

Ben Fieman

Top 1% Real Estate Agent on Oahu
$100M+ sales, 150+ transactions

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

M: 808.900.4487
E: Ben@Fieman.com
W: www.Fieman.com

YouTube

Podcast

Concierge

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.