Record-low Mortgage Rates Negate COVID-19 Effect

Oahu single-family home and condo sales from January 2020 to July 2020 were researched and analyzed by Locations, and this is what was found: 

• Single-family home sales from January to July 2020 are one percent higher than the same period in 2019. 
• While home prices are flat year-to-date compared to last year, they are trending up and have accelerated more in the past month than in the first six months of the year combined. 
• Condo sales are down by 13 percent year-to-date over last year, which could be attributed to both the crackdown on illegal vacation rentals and the effects of the pandemic on demand for legal vacation rentals; however, condo sales are trending back up in recent weeks. 
• Condo prices are up three percent this year over 2019, fueled by fewer listings and lower interest rates. 

“After a rollercoaster real estate market at the onset of the coronavirus pandemic, the Oahu housing market has stabilized and is trending up,” said President and CEO of Locations Jason Lazzerini. 

Lazzerini went on to say that extremely low single-family home inventory (down 40 percent over last year), coupled with record-low mortgage interest rates, has pushed median home prices above last year’s levels in more than half of Oahu market areas. 

“A segment of home sellers who pulled their listings last spring over fears of COVID-19 has not yet returned to the market,” Lazzerini added. “With less than 800 single-family homes for sale across the island and renewed buyer interest, it will be a seller’s market as we head into the fall.” 

Lazzerini also noted that competition among homebuyers is especially stiff at entry-level price points; however, there are areas of opportunity for buyers where inventory is higher. For example, there were nearly 50 more condos for sale in Waikiki in July than the previous year, and Days on Market increased by 12 days, softening that market segment a bit. 

Locations recommends that homebuyers and sellers partner with a Realtor® who has access to detailed market data, as individual neighborhoods and buildings perform differently. Locations also has 3-D virtual home tours available at www.locationshawaii.com.