September 2022 Monthly Newsletter Email

Sales of Oahu Homes Return to Pre-Pandemic Levels

Median Prices for Condos Dips Under $500,000. Shift happens. There's no need to panic. Here's why:

I like to use the analogy of how the pandemic affected the Oahu real estate market to flying down the H-1 freeway at 80 mph. Every property was flying off the shelves with multiple offers. Now the Oahu real estate market is going the speed limit of 55 mph. It's more normalized, buyers are not having to waive every contingency, and less transactions are taking place. Do bubbling home prices mean we're headed to a housing bubble? No, and here’s why: 

- Mortgage protections are in place. While rates are at a historic low, it’s harder to get a loan today than it was in 2006.  
-The market is more stable. Only 2.8% had negative equity on their homes, compared to 26% in 2009. 
-Months of active remaining inventory remains very low at 1.8 months (6 months or more becomes sellers market).

Don’t let the fear of a bubble burst your real estate goals.

View Market Update Video

September 2022 Oahu Real Estate Market Update

More than 300 single-family homes and more than 500 condos sold in August, which is near pre-pandemic annual average closed sales per month for single-family homes and above average for condos. Median sales prices remained on pace with recent months, with August’s single-family home median sales price rising 7.2% year-over-year to $1,125,500 and the condo median sales price marking a nominal decline of 0.3% to $498,500.
 
As market activity continues to slow with the rise in interest rates, it’s important for buyers to remember that homeownership is still possible. More than 250 properties on O‘ahu, most of which were condos, sold for under $500,000 last month.
 
While new listings fell 17.2% for single-family homes and 15.7% for condos, active inventory increased 43.3% for single-family homes and 12.9% for condos, though this lags behind pre-pandemic levels. A larger share of new listings remained active at the end of the month – 61% compared to 46% last August for single-family homes and 59% compared to 48% for condos – which is another indication of the cooling market. In both markets, properties that sold in August were on the market for a median of 13 days.

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Content Corner

I don't negotiate just to get a deal done, I negotiate to get my client the best deal possible.

2638 Nakookoo St: 3 bed, 2 bath, 3 parking, and a private rooftop deck! Listed at $848,000.

Negotiating to get every dollar possible builds trust and loyalty, which then turns into referrals.

Recent Closings

Lower Hahaione

555 Hahaione Street, Unit 1B

2 BD   2BA   1238SF   $665,000

Waikiki

383 Kalaimoku Street, Unit E1710 (TOWER 1)

1 BD   1BA   665SF   $830,000

I helped my client purchase this property in 2017 for $457,000. I was able to sell it for him 5 years later for $208,000 more, or $41,600/yr of appreciation. By owning a home and investing in the Hawaii real estate market, you could be supplementing your income with appreciation. Even if you have a good rental, you could be missing out on opportunities like this.

I was able to help my buyer get this beautiful 1 bedroom unit @ritzcarltonwaikiki for $155,000 or 16% below asking! The seller was motivated because they are a Japanese citizen and the yen is very weak compared to the dollar right now so they were able to replenish their funds at a higher exchange rate by selling their US property. Strong negotiations can get the job done.

Kawailoa Beach

61-393 Kamehameha Highway

3 BD   3BA   1728SF   $4,200,000

Punchbowl Area

110 Ohelo Lane

5 BD   2BA   924SF   $935,000

Just sold for $4.2M! Rare north shore oceanfront home with legal vacation rental license. Helped my buyer beat out 5 offers and 3 strong buyers by constantly checking in and communicating with the listing agents to figure out what it would take to just edge out the competition.

Beat out 5 other offers to help my buyer get this fixer upper home. 2 stories with separate rentals under $1M in Punchbowl is not bad. Also received a nice $10k credit from seller and had them tent fumigate the home for us. We ran the transaction for our buyers remotely since they are moving here from San Diego so constant communication helped put them at ease.

Current Listings

Salt Lake

1005 Ala Lilikoi Street, Unit W201

2 BD   1BA   683SF   $450,000

Mililani

94-1069 Anania Circle, Unit 17

4 BD   3BA   1967SF   $785,000

Welcome home to Lakewood, a perfect opportunity for first time homebuyers or investors. This newly renovated 2 bedroom 1 bath unit features 2 split AC units, laminate flooring, upgraded wood cabinets, quartz countertops, stainless steel appliances, ceramic tiling, modern ceiling fans, and a private lanai. Building features include low maintenance fees, community laundry, and ample street parking.

Welcome home to this huge, spacious, rarely available 4-bedroom 3-bath townhome at Spruce Ridge Villas in Mililani with a private enclosed patio, lanais, and an attached garage! Why overpay for a single family home when you can save a ton with this townhome and live the exact same way for a fraction of the price?

Kailua

1020 Aoloa Place, Unit 305A

3 BD   2BA   1320SF   $780,000

Moiliili

2638 Nakookoo Street, Unit 501

3 BD   2BA   1151SF   $848,000

Welcome home to this extra large 3-bedroom, 2-bath, 2-tandem parking, unit in Windward Cove with a rooftop lanai! Enjoy the view of the lush tropical pond from your living room and master bedroom and the majestic Koolau's upstairs from your deck. High ceilings, lots of storage space throughout, and can be move in ready or renovate as you go.

Very cool listing coming soon, the ENTIRE top floor penthouse of a condominium with a huge open lanai, 3-bedrooms, 2-baths, and 3-parking stalls! 2638 Nakookoo St #501 in Moiliili will be coming on the market at $898,000.

 New Project: Alia

Introducing Ālia, a new evolution in smart living, developed by Kobayashi Group. Situated on Ala Moana Blvd, in the heart of Kaka'ako, Ālia artfully blends luxury and sustainability, allowing residents to thrive in a community designed for their needs. With an array of amenities, verdant open spaces, and easy access to Honolulu's most iconic neighborhoods, residents of Ālia will have the best of the city at their fingertips. The 400-ft residential high-rise was recently approved by the Hawai'i Community Development Authority (HCDA). Ālia will total 483 homes, showcase stunning views of the expansive Pacific and host an array of amenities, curated for every lifestyle. Sales are anticipated to launch by the end of Q4 2022. Contact me ASAP for a private presentation to learn more.

Real Estate in the News

Home Exemption Deadline: September 30

Reminder that if you live in your primary residence you can qualify to claim your homeowners exemption by Sep. 30. Doing so helps to avoid paying a higher property tax rate next year. Homeowners can file online at www.realpropertyhonolulu.com.

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Reach out to chat!

Ben Fieman

Top 1% Real Estate Agent on Oahu
$150M+ sales, 200+ transactions

Realtor Broker | RB-23470 | MBA
Compass Hawaii, Founding Agent

M: 808.900.4487
E: Ben@Fieman.com
W: www.Fieman.com

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Compass is a licensed real estate broker. All material is intended for informational purposes only and is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to the accuracy of any description or measurements (including square footage). This is not intended to solicit property already listed. No financial or legal advice provided. Equal Housing Opportunity. Photos may be virtually staged or digitally enhanced and may not reflect actual property conditions.