Each month, our Lead Research Analyst John Jacobson offers a detailed deep dive into the latest Oahu real estate market data, exclusively for Locations agents. Presented in person and via Zoom, John provides an in-depth analysis formed from his extensive knowledge of the island’s many home and condo markets. Agents are encouraged to ask questions and share their “boots-on-the-ground” market observations. It’s a can’t-miss meeting for our agents!
Below are five charts from John’s January 2024 presentation that show current market dynamics:
1. There are few single-family homes for sale that would be affordable for a median-income four-person household with typical financing. Most of these homes can be found in Leeward Oahu; however, lower-priced homes can also be found in Kapalama and near Hauula. More than half of for-sale condo inventory is affordable to a median-income household. Condo markets areas with higher percentages of lower-priced units include Mililani, Pearl City-Aiea and Leeward Oahu, as well as many in-town markets, including Salt Lake, Downtown, Makiki, and Kapiolani-University.
2. Median rent for Oahu condos increased for all bedroom-types from 2022 to 2023. The biggest increases were for studios and 3-bedroom units, where rent increased by $100 a month each.
3. Conventional loans remain the dominant loan type in most single-family market areas. However, all-cash purchases accounted for more than half of all home sales in the luxury neighborhoods of Waialae-Kahala, while VA-financing was used in half of all purchases in Ewa, thanks to a combination of factors, including affordability, proximity to military bases and more eligible properties.
4. Median prices for oceanfront homes ran the gamut last year, from $1.44M in Leeward to $8.25M in Hawaii Kai. The last time Hawaii Kai took the top spot for oceanfront median price was in 2009—that honor usually goes to Waialae-Kahala or Kailua.
5. At 6.1%, the rate of long-term appreciation for Oahu single-family homes outperforms the national average of 5.7% over the past 50 years. Average prices for existing homes rose 37% in the 2 years following the pandemic on Oahu, as well as on the U.S. continent. In 2023, average prices for existing homes fell by 5.6% nationwide, but only 4.2% on Oahu. Locations has been tracking Oahu home values since 1972, arming our agents and their clients with unparalleled market data.
Valuable data you won’t find anywhere else is just the tip of the iceberg at Locations! Our lead research analyst can also perform custom market analyses, so our agents can ace their listing presentations and win more clients. Want to learn more about how Locations’ research capabilities could benefit you? Drop us a line today!
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