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December 2023 Market Report

Market Overview

In December of the year 2023, both markets sustained their ongoing year-over-year decrease in sales volume. This marked the 23rd consecutive month of declining sales for single-family homes and the 19th consecutive month for condos.

The median price for a single-family home fell below the $1 million threshold, concluding the month at $996,500. This represented a 5.1% decline from December 2022 when the median price was $1,049,500. In contrast, condos saw a modest increase in median sales prices, rising by 1.5% to $510,000 compared to the same period last year.

Single-family homes had a median days on the market of 18 days, completing transactions one week faster than in December 2022. On the other hand, the condo market recorded a median days on the market of 26 days, which was five days longer than the previous year.




Navigating Mortgage Rate Fluctuations

During the early part of the fourth quarter in 2023, there was a notable peak in average mortgage rates. However, as the quarter progressed, there was a subsequent decline observed in mortgage rates during the months of November and December. Despite the rates remaining higher compared to the same period in the previous year, there was a noteworthy uptick in contract signings for both the single-family homes and condominium markets.

This observation could imply that buyers perceived the temporary dip in mortgage rates as an opportune moment to make real estate investments. The HBR President's statement suggests that, despite the challenges posed by the increased mortgage rates earlier in the quarter, the real estate market demonstrated a level of adaptability, with buyers seizing the perceived advantages of the lowered rates in the later months of the quarter. This resilience in buyer activity may reflect a broader confidence in the housing market, underlining the enduring motivation among potential homeowners to secure their new homes.

Surge in Contract Signings and Escrow Inventory in Both Single-Family Homes and Condos

In December, the real estate landscape witnessed a notable 8.3% surge in contract signings for single-family homes, signaling an active interest among potential buyers. While condo contract signings remained relatively stable, experiencing a slight increase of 0.3%, both segments of the housing market concluded the month with increased total inventory in escrow compared to the previous year. Single-family homes exhibited a robust 9.7% growth, and condos followed closely with an 8.8% increase.

A Deep Dive into Sales Trends in the Single-Family and Condo Markets

Diving deeper into the market dynamics, the 21.1% decline in sales for single-family homes priced at $1 million or more stands out. This decline, from 114 sales in December 2022 to 90 in the current year, suggests a shift in buyer preferences towards more affordable housing options. Conversely, sales for single-family homes priced below $1 million demonstrated resilience, registering a modest uptick of 4.5%. 

For sellers of more affordable homes, this could be a good time as there's a higher demand. On the other hand, if you're selling a more expensive home, you might need to be strategic in attracting buyers.

In the condo market, the dynamics were nuanced. Higher-priced units at $700,000 and above experienced a minor dip in sales, with 74 units sold, just two less than the previous year. The demand for these relatively expensive condos may have been influenced by factors such as location, amenities, and overall market trends. However, the more affordable condos, those priced below $699,999, saw a notable decline of 30.3% in sales compared to the previous year, with only 198 units sold. 

Surging Single-Family Home Listings Amidst Rising Interest Rates and the Contrasting Trends in the Condo Market

Despite rising interest rates, the single-family home market experienced a notable uptick in new listings, increasing by 9.8% compared to December 2022. This surge in new listings could be attributed to several factors influencing sellers' decisions. Firstly, homeowners might have been prompted to list their properties in response to the anticipation of even higher interest rates in the coming months, seeking to capitalize on the market before financing costs escalated further. Additionally, the ongoing demand for affordable housing options could have motivated sellers to enter the market, recognizing the potential for favorable returns despite the challenging economic environment.

Conversely, the condo market witnessed a decrease in listings, declining by 5.9% compared to the same period last year. This reduction in condo listings could be a response to changing buyer preferences or a reflection of the ongoing challenges in the condo market, impacting seller decisions.



Despite the increased number of new listings, the growth in active inventory for both single-family homes and condos was relatively modest. By the end of December 2023, there were 600 active single-family homes, marking a subtle 0.5% increase from the previous year. The condo market reflected a slightly more significant growth in active inventory, with 1,234 units, representing a 5.5% increase.

For prospective buyers, this scenario signals a persistent challenge in finding a diverse array of housing options. Despite the increase in new listings, the limited growth in active inventory suggests that the market is absorbing properties swiftly. This heightened demand, combined with the restrained increase in available homes, could lead to continued competition among buyers, potentially influencing pricing dynamics.

Oahu Local Market Statistics

In December 2023, the total sales for single-family homes were 182, marking a decrease of 9.9% from the 202 sales recorded in December 2022. Additionally, the median prices for these single-family homes witnessed a decrease of 5.1% compared to the previous year. Condos also experienced a decline of 24.4% in sales, with 272 closed sales in December  2023 as opposed to 360 in December 2022. Condos also saw an increase of 1.5% in median sales price in December 2023.

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Whether you're looking for a stunning beachfront home or a cozy condo in Honolulu, feel free to reach out to Mike Hegazy II & team. We're dedicated to providing exceptional service and expertise to our clients.