Oahu’s Real Estate Market Report, Q3 2021: What Rising Prices Tell Us About Oahu’s Housing Market
Just released by Hawai’i Life, our Quarter 3 2021 real estate market report reveals that while inventory shrunk by over 33.9% in the past 12 months, the volume of sales swelled to more than 9.1% over the same period, and it all added up to one thing: A seller’s market that is more robust than ever.
Q3 Remains a Strong Seller’s Market
Although some of the previous 12 months have been outliers, the overall trendline indicates that the average Days on Market (DOM) dropped from 43 in Q3 2020 to 21 this quarter. This decrease of 51.2% compared to one year ago confirms that the seller’s market is certainly not losing any momentum.
Property sales, on the other hand, headed in the opposite direction. Specifically there were 1,275 property sales on Oahu in Q3 2021, an increase of 9.1% over 1,169 sales in Q3 the previous year.
For the third quarter of 2021, the average sales price of single-family homes on Oahu was also on the rise, up to $1.267M. That’s an increase of 23.4% over the average sales price of $1.07M during Q3 2020.
When it comes to the direction that property values are taking, it’s evident that residential properties are commanding more value per square foot. And the most telling indicator of this is not the Median Sold Price and Average Sold Price, but rather the Average Sold Price per square footage.
For Oahu, the average price per square foot has shown a steady increase over the last 12 months. With the year over year increase growing to $665.31 per foot at the end of September 2021, that’s a 18.7% price difference between Q3 2021 and $560 in Q3 2020.
Inventory Shrinks Substantially
Currently, there are 1,291 pending properties on Oahu, an increase of 11.5% over the same period last year, in which 1,158 homes were under contract.
Since we monitor the trends in homes available for sale closely, we weren’t too shocked to see inventory shrink by the hundreds over the past 12 months. As of the release of this real estate market report, there were 490 active residential listings on Oahu, as compared to 639 listings in Q3 2020.
What This Means for Buyers and Sellers
For the seller, buyer demand is sharply influenced by how fast a house will sell and how many buyers may be competing for it. In Q3 2020, months of inventory available was 1.8 months. Fast forward to Q3 2021, and we’re seeing buyer demand climb and inventory descend by 33.9%. At this average monthly sales pace, it will only take 1.2 months to sell all properties listed on Oahu, putting sellers at an undeniable advantage.
For the buyer, the higher prices and fierce competition can be challenging. But by working with a real estate professional to harness the power of home-buying tools, buyers can compete successfully in Hawaii’s hot housing market.
Access the rest of the Q3 Hawai’i Market Reports Now
The Real Estate Market Report covers quarter three of 2021, providing a wealth of knowledge from Hawai’i’s most experienced real estate brokers.