Rising Housing Costs in West Oahu
Research analyzed by Locations found that Oahu single-family home and condo sales for the month of September 2020 and found rising housing costs in West Oahu along with:
- Active listings are down in all Oahu single-family home markets.
- Mililani had the fewest homes for sale last month, with just seven homes compared to 33 as of September 2019—a 79 percent decrease; Mililani’s median home price reached a record $810,000.
- The Ewa and Leeward markets also had significant decreases in homes for sale, with a 79 and 73 percent drops, respectively. Bid ups increased by 58 percent in the Ewa market (which includes Kapolei) as of September, while the median price reached $700,000—another record.
- Competition was also higher in the Leeward market, which includes Waianae, with just 22 listings and nearly one in four homes bid up over asking as of September. With a median price of just over $500,000, the Leeward market is the only Oahu local market with a median price below $700,000.
- Condo active listings are down in most markets, with increases in Waikiki, Ala Moana-Kakaako, Kapiolani-University, and Kailua
- Ewa and Pearl City-Aiea were the most competitive condo markets as of September, with one in five sales bid up over asking.
- There were less than half the number of Ewa condos for sale as of last month than in September 2019, while Pearl City-Aiea had 20 percent fewer condos for sale, with just 38 listings. The median list price for Ewa condos as of September was $630,000, a 10 percent increase. The median list price for Pearl City-Aiea condos reached $412,500, a nine percent increase.
“Mililani has historically been a very competitive market, but it’s gotten even more competitive this year, with more than one in three homes selling for above asking, compared to slightly less than one in four a year ago,” said President and CEO of Locations Jason Lazzerini.
Lazzerini went on to say that while the condo market is not as hot as the single-family home market, it is still competitive.
“While there are nearly three times as many condos for sale as single-family homes, we did see a six percent decrease in condos for sale last month, compared to a year ago—with the biggest drop in condo inventory in the Ewa market,” Lazzerini added.
With both record-low interest rates and reduced inventory contributing to extremely competitive market conditions, Lazzerini advised would-be homeowners to get pre-qualified for a home loan and to partner with a knowledgeable Realtor® who has access to neighborhood-level market data.
“Be prepared to be out-bid a few times before you find your home, and if you can be flexible on your neighborhood of choice, that’s helpful, too,” Lazzerini added.