Oahu Market Update: Home prices remain resilient

It was just over two years ago — August 2021 — when the median sales price of an Oahu home topped $1 million for the first time.

Despite an economy-crippling pandemic and multiple mortgage rate hikes over the past 24 months, the median sales price (MSP) slipped under $1 million only three times — and barely so. Oahu’s highest monthly median sales price on record occured in May 2022 when single-family MSP hit $1,153,500. Eight months later, it fell to a two-year low of $970,000 in January 2023. Still, by July, the MSP of a single-family home was $1,110,000.

Home prices are the most recognized market indicator. Experiencing such market stability in an average two-year period would indicate well-balanced conditions beneficial for both buyers and sellers. But the multiple economic challenges brought about by COVID precipitated significantly reduced inventories, which intensified competition among buyers. The Federal Reserve’s numerous rate increases boosted mortgage interest rates, exacerbating challenges for home buyers.

While some buyers have switched gears, by downsizing their end game, narrowing their sights to condos and townhomes, others have been priced out of the market altogether — possibly unnecessarily so.

According to Freddie Mac, buyers who shop around for the best mortgage package can save money, possibly enough to partially offset the effects of higher interest rates [more]