May 2021: Market Update
Steep Competition, High Demand Drives Record-Setting Month for O'ahu Real Estate
According to resales figures released today by the Honolulu Board of REALTORS®, closed sales of single-family homes climbed 63.3% and more than doubled for condos with 135.4% more sales compared to this time last year on O‘ahu. In stark contrast to the low activity of May 2020 amid pandemic uncertainties, May 2021 set new records with the median sales price of a single-family home rising to $978,000 – breaking the previous record of $950,000 set in March 2021 – and properties flying off the market at an unprecedented pace.
The median days on the market for single-family homes and condos hit new record lows of 8 and 12 days, respectively. In May, sellers added 430 new listings for single-family homes and 683 new condo listings to the market, representing 24.6% and 34.2% increases over last year. However, by the end of May, 61% of those new single-family home listings and 51% of new condo listings were already sold or in escrow.
“The market’s rapid pace is showing no signs of slowing, and buyers entering the market continue to face stiff competition, especially for homes under $800,000,” said Shannon Heaven, president, Honolulu Board of REALTORS®. “One property received 60 offers within one week of being listed, which is a clear indication that O‘ahu is in desperate need of more affordable homes.”
The portion of single-family homes sold over the asking price remained steady month-over-month, accounting for 58% of all single-family properties sold in May. Single-family homes in the $700,000 to $999,999 price range made up 40% of all closed sales, though properties sold in the $1,000,000 to $1,999,999 range captured nearly the same market share, making up 38% of sales in May.
Condos sold above the asking price represented 36% of all sales this month, a big jump up from just 9% last May. Every price point recorded a rise in sales volume. The most significant shift in condo sales volume occurred in the $600,000 to $699,999 range, with 83 sales compared to 16 last May, an increase of 418.8%. However, properties in the $300,000 to $499,999 price range accounted for more than one-third of the month’s sales, with 94 more sales than last year.
“Every day REALTORS® are working with buyers to submit their strongest offer and with sellers to secure the best price for their home,” added Heaven. “As we mark Homeownership Month in June, we encourage anyone thinking about buying a home to work with a REALTOR®. No one knows the market better and is uniquely qualified to help you work towards your goal.”
Source: Published by the Honolulu Board of Realtors, "Monthly Stats Report, May 2021".
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