Oahu home prices climbed to a new high in August as the island’s housing market edged past a major benchmark. According to the Honolulu Board of Realtors, the median price for previously owned single-family houses reached $810,000 last month, the first time Oahu home prices have topped $800,000.
The $810,000 median was up 3 percent from $786,250 in August 2017 and surpassed the prior record of $795,000 set in June 2017. By definition, a median indicates half of sales closed above $810,000 and half below.
Single-family home sales totaled 354 in August, a 2 percent decline from 362 a year earlier. While the jump above $800,000 may surprise shoppers, market analysts had anticipated the milestone this year or next as prices have trended higher for years.
“When we step back and look at the last 12 months as a whole, what we’re really seeing is the steady, continued price growth that we’ve been experiencing for eight years now,” said Scott Higashi, president and CEO of brokerage firm Locations, in a company report.
Annual median prices cleared $600,000 in 2012 and $700,000 in 2015, with year-over-year gains ranging from 3.7 percent to 7.8 percent during that stretch. For the first eight months of this year, the median single-family price stands at $785,000, up 3.7 percent from $757,000 in the same period last year.
With four months remaining, industry watchers say the 2018 annual median is unlikely to exceed $800,000. The University of Hawaii Economic Research Organization projected in March that the island’s median would average $784,200 this year, then rise 1.9 percent to $798,900 in 2019 and increase another 1.2 percent to $808,800 in 2020.
Offering a counterpoint on affordability, Honolulu Board of Realtors President Darryl Macha said buyers are still finding properties at or below $600,000. Recent sales near that level included average-condition homes in ʻEwa and some excellent-condition residences in Māʻili and Mākaha, along with a Pacific Palisades house needing major repairs and a tear-down in Pearl City, according to sale records.
At the higher end, one August buyer paid $810,000 for a 1,368-square-foot home built in 1994 on a 5,562-square-foot lot in Mililani Mauka. Listed on July 12 for $815,000, it went into escrow on July 20 after receiving an accepted offer.
Oahu home prices and condo trends
Condos, which typically trade in larger volumes and offer a more attainable entry point, posted a median sale price of $427,000 in August, up 2 percent from $419,000 a year earlier. The condo median record of $435,000 was set in March.
There were 521 condo sales last month, down 9 percent from 575 a year earlier. Inventory remains tight across the island, a factor that can lift prices by intensifying competition among buyers.
Pending transactions at the end of August were down 12 percent for condos and 15 percent for single-family homes compared with a year ago. The island’s housing market continues to draw scrutiny as prices edge higher.
By the numbers: August snapshot
- Single-family homes: 354 sales, $810,000 median, sales down 2.2 percent year over year, median up 3.0 percent.
- Condos: 521 sales, $427,000 median, sales down 9.4 percent year over year, median up 1.9 percent.
Source: Honolulu Board of Realtors
On the move
The University of Hawaii Foundation announced several additions to its board of trustees:
- Peter Fukunaga, director of Hui Car Share at Servco Pacific and former investment manager with Kamehameha Schools.
- Peter Grossman, first vice president with CBRE’s Industrial and Logistics group, with 15 years of general management experience in Asia.
- Elliot “Buzz” H. Loden, founder and partner at Loden & Conahan and former IRS estate tax attorney for the state of Hawaii.
- Ken Miller, senior vice president and chief investment officer leading First Hawaiian Bank’s Institutional Advisory Services Division, previously a senior research analyst at JP Morgan Securities.
- Diane Paloma, chief executive officer of The King Lunalilo Trust and Home, formerly director of Native Hawaiian health at The Queen’s Health Systems.
- Lori Teranishi, principal and founder of iQ 360, previously in leadership roles at Visa USA including product development and chief of staff to the COO.
