(Eagle News) – According to the June 2021 resales figures by the Honolulu Board of REALTORS® (HBR), sales of single-family homes rose by 49.3%; and condominium sales went up to an astounding 134.0% compared to the same period in 2020 when real estate activity first began to pick up following the economic standstill brought on by the COVID-19 pandemic.
At present, the median sales price of a single-family home edged past the record set last May to reach $979,000, while the condo median sales price of $460,000 was just shy of the standing record of $461,500 from July 2019.
The sales report further shows the condo market continuing to bustle with activity, setting a new record low days on the market at a median of just 11 days. Single-family homes continue to move into escrow quickly, spending a median of 8 days on the market. Sellers have also added much-needed inventory to the market, with June marking a 23.0% increase in new single-family home listings and a 31.1% increase in condo listings.
“We are in a vastly different market now compared to this time last year, when activity was slowly starting to ramp up versus now where properties are moving into escrow in record time,” said Shannon Heaven, HBR president. “In particular, the condo market surged in 2021 because some buyers decided not to pursue a single-family home due to the severe lack of inventory and competitive bidding wars.”
So far this year, the trend of properties selling over the asking price persists, with 57.7% of single-family homes and 32.9% of condos closing above the original asking price. These over-asking price sales confirm bidding wars have been taking place predominantly in mid-range price points for single-family home properties, with 57.0% of those sales in the $600,000 to $999,999 range. Inventory in this price bracket for single-family homes is down 37.0% compared to a year ago.
Meanwhile in the condominium market, 66% of sales above the original asking price have occurred in the $400,000 to $699,999 price range.
The regions with the most substantial increase in single-family home sales include Diamond Head and the Metro area, up 84.4.% and 76.2%, respectively. The Metro area, which covers Mapunapuna and Kalihi all the way through Waikīkī and Moiliili, was also popular in the condo market with a 79.4% jump in sales, while the Ewa/West Oahu region marked a 60.2% increase in sales.
“The steep competition and prevalence of bidding wars illustrate the extreme lack of inventory we are facing on Oahu,” added Heaven. “We are in desperate need of more properties to house our local families, especially in the affordable to mid-range price points.”
(Alfred Acenas, EBC Hawaii-Pacific, Eagle News Service)