October 2023 Market Report

Market Snapshot

In October, the number of homes sold remained  the same. Single-family houses and condos saw slight decreases compared to last year, with single-family homes down by 4.1% and condos down by 8.3%. The typical price for single-family homes went up by 4.8% to $1,100,000, while condos went down a bit by 1.0% to $515,000.

October 2023 vs October 2022

Now, let's talk about strategy. The buyers who are succeeding right now aren't sitting on the sidelines. They're taking action, buying homes with loans that have high interest rates but also come with credits from the seller and lender. This helps them secure a lower price upfront, and they're betting that interest rates will drop in the future, giving them a chance to refinance at a better rate. If interest rates do come down, the housing market could get really competitive again, and those who waited might end up paying much more. 

If you're tired of waiting and want to understand the numbers, please don’t hesitate to contact me. I'll show you why it makes sense to buy now, especially when many others are holding back.

Understanding Recent Drops in Pending Sales and Opportunities for Buyers and Sellers

Over the past month, there's been a drop in pending sales. For single-family homes, this decrease is about 17.2%, and for condos, it's 12.4%. Looking at the whole year, there's still a small dip of 3.0% less for single-family homes and 5.0% less for condos.

Now, what does this mean for you? Well, if you're trying to sell your home, it might sound a bit concerning, but here's the silver lining. The drop in pending sales could be because many homes are moving from the waiting list to being officially under contract or already closed deals.

For buyers, this can also be good news. With fewer homes in the pending sales stage, there might be less competition. Sellers might be more open to negotiations, and you could snag a better deal.

In a nutshell, while the numbers show a decrease in pending sales, it doesn't necessarily mean a slowdown in the market. For sellers, it might mean a smoother closing process, and for buyers, it could be an opportunity to find a home with less competition.

Opportunities for Sellers and Buyers Amidst Decrease in Full Asking Price Closures

The past month brought a decrease in the number of homes selling at their full asking price or higher. For single-family homes, 43% of sales closed at or above the asking price, a drop from 50% in October 2022. Condos also saw a decline, with 38% of sales closing at or above the asking price, compared to 48% in October 2022.

Now, what does this mean for you? If you're selling your home, it suggests that getting the full asking price might be a bit more challenging compared to before. To navigate this landscape effectively, it is essential for sellers to consult with a real estate agent who can provide valuable insights and guidance on strategic and realistic pricing strategies.

Conversely, for buyers, this market shift brings positive news. With a decrease in the number of homes and condos closing at or above the asking price, there exists a favorable environment for negotiation. Buyers are encouraged to explore these negotiations and possibly get a better deal. 

Affordable Condos on the Rise, Shifting Dynamics in Single-Family Home Sales

In total, 187 homes were sold for under $500,000, and most of them were condos. The number of single-family homes sold in the $800,000-$999,999 range went down by 25.6%. However, homes priced over $1,000,000 slightly increased to 127 closings, up from 122 in October 2022.

Now, in the condo market, units priced between $500,000 and $599,999 went up by 44.7% compared to the previous year, reaching 68 sales. However, condos in the $600,000-$699,999 range experienced the biggest drop, with sales falling by 27.1% to 35 units from 48 in the previous year.

These shifts in the market can be attributed to people's current preferences and affordability. Affordable condos priced under $500,000 have become increasingly popular, driving higher sales in this category. Meanwhile, in the single-family home market, there seems to be a rising interest in homes priced at $1,000,000 and above, leading to a slight uptick in sales in this range. 

Unpacking Recent Real Estate Trends: More Choices, Mixed Numbers in New Listings

In the recent months, both the single-family home and condo markets experienced a boost in available options. The active inventory for single-family homes increased by 5.7%, while condos saw an even more significant uptick of 9.4% month-over-month.

The number of new listings, however, compared to this month last year, displayed mixed results. In the single-family home market, there was a 4.6% decrease in new listings, dropping to 272 compared to 285 in October 2022. On the flip side, the condo market saw a 6.4% growth in new listing volume, totaling 566 new listings in October, up from 532 the previous year. 

This suggests a willingness among condo owners to actively put more properties on the market, potentially seizing the opportunity presented by increased demand for condominium living. The flexibility and often more affordable pricing of condos may be enticing sellers to list their properties, aligning with a growing preference for condominium living among homebuyers.

Oahu Local Market Statistics

In October 2023, the total sales for single-family homes were 213, marking a decrease of 4.1% from the 222 sales recorded in October 2022.  Additionally, the median prices for these single-family homes witnessed an increase of 5% compared to the previous year. However, condos experienced a decline of 8.3% in sales, with 399 closed sales in October 2023 as opposed to 435 in October 2022. Condos also saw a slight decrease of 1% in median sales price in October 2023.