Oahu Market Prepares To Recover
 
Single-family home sales on Oahu declined by 22.5% last month, as COVID-19 restrictions continued to impact the market. According to the Honolulu Board of Realtors®, the median price rose by 3.5%, while condominium sales declined by 51% and their median price declined by 4%. However, local agents are optimistic about the current market, especially those with relaxed quarantine mandates. Around 30% of the homes and condos that were taken off the market in March or April were back on the market by the end of May. New listings increased 17% from the previous month, and May's volume of listings opening escrow increased by 32%.

The median days on market for single-family homes dropped to 13 days in May, from 21 days in May 2019. For condos, days on market declined to 23 days, from 27 days last year. Tricia Nekota, president of the Honolulu Board of Realtors®, commented: "As the state continues to reopen, we are already seeing a steady increase in activity that, in turn, helps to drive our local economy."

Homebuying Demand Up 22%, Prices Rise 7%

As more quarantines end, more homebuyers are entering the market. After 7 straight weeks of increasing numbers, home buying demand has increased by 22% from pre-pandemic levels. While sellers continue to enter or re-enter the market, the inventory of homes for sale in many metro areas can’t keep pace with buyers, driving prices up by 7%. Combined with low mortgage rates, competition for homes continues to increase. In addition, the number of people who plan to continue working remotely post-pandemic has grown – and many people living in rentals would be more comfortable in a home of their own. A recent Gallup poll found that 3 in 5 workers who have been doing their jobs from home during the pandemic would prefer to continue to work remotely after all COVID-19 restrictions are lifted.