Sometimes in life you have to laugh while looking back at the times you've had... the pandemic induced real estate roller coaster is one of those moments for us. After 23+ years of selling real estate (so I was around for the great real estate recession of 2008) I have to say this round has been entirely different!
In 2022, O‘ahu’s real estate market was marked by transition. The year began similarly to 2021 with intense competition among buyers, with mortgage rates still hovering near historic lows and ended with headwinds when these rates rapidly and sharply rose. Key highlights included: ● In the second quarter of 2022, 63% of single-family homes and 44% of condos closed above the original asking price.
In May, the single-family home market set a record median price of $1,153,500; in June 2022 compared to $789,000 in January 2019, the condo market hit a record median of $534,000.
Mortgage rates continued to rise through the year, with average rates reaching the 7% range in late October and ending 2022 in the mid-6% range.
In the fourth quarter, the percentage of properties sold above the original asking price had dropped to 29% of single-family home sales and 25% of condo sales.
“While O‘ahu’s real estate market started the year strong, the steep rise in interest rates and fluctuation in inventory are shifting the market dynamic,” says Fran Villarmia-Kahawai, president of the Honolulu Board of REALTORS®. “Although buyers face higher financing costs, they now have more options to choose from, and competition isn’t as fierce.” With the single-family home median sales price holding above $1 million throughout the year, sales volume saw a significant decline in 2022 as mortgage rates more than doubled from the previous year.
So what does all of this mean - We'll have our 2023 predictions in next month's newsletter.... we will do a deep dive once our officially year over year numbers are crunched... but you can read a recent analysis we shared in November.... This will give you some insight to the year end market.
Stay tuned for more!