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Monthly Market Update
August 2023 Stats Report
Single Family Homes
$1,090,000▲
Median Price
266▲
Closed Sales
18--
Days on Market
666▼
Homes for Sale
2.7▼
Months Supply
Month-to-Month Change: Compares change from July 2023 to August 2023
O‘ahu Real Estate Market Insights:
August 2023 Monthly Stats Report
In August 2023, the O‘ahu real estate market exhibited both challenges and opportunities. We witnessed fluctuations in sales, changes in median prices, and shifts in inventory across various price ranges. Here's a concise summary of the key highlights from this month's statistics report.
Sales Performance:
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Single-family home sales decreased by 19.7% YoY.
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Condo sales declined by 16.9% YoY.
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However, compared to the previous month, single-family home sales increased by 12.5%, while condo sales remained steady.
Median Sales Prices:
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Median sales price for single-family homes dropped 1.4% YoY to $1,090,000.
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Condo median sales price increased by 3.3% YoY to $515,000.
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Year-to-date, median sales prices fell for both property types: single-family homes decreased by 5.7% to $1,050,000, and condos decreased by 1.6% to $515,000.
Sales Volume by Price Range:
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Single-family homes in the $900,000 to $1,199,999 price range had the most significant decline, falling 39.2% YoY.
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Affordable single-family homes in the $600,000 to $899,999 range increased by 13.1% YoY.
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Condos in the $100,000 to $499,999 price range saw the largest drop in sales volume, down 24.3% YoY.
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Sales of high-priced condos ($900,000 and above) remained relatively stable compared to the previous year.
Inventory:
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More affordable single-family homes (under $799,999) saw a 33.8% YoY increase in active inventory.
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Kāne‘ohe and Leeward regions had the largest YoY inventory increases, up 52.9% and 16.7%, respectively.
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Condo inventory increased at most price points, with the majority in the $300,000 to $699,999 range, showing a 20.7% YoY increase.
Days on Market:
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Properties in both markets took slightly longer to sell, with a median of 18 days on the market, five days slower than the previous year.
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Leeward region homes and Waipahu condos had the slowest pace, with median days on the market of 50 and 41 days, respectively.
Pending Sales:
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Pending sales volume remained lower YoY, but both markets saw slight increases compared to the previous month.
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Contract signings rose by 8.1% for single-family homes and 1.0% for condos compared to July.
August 2023 Mortgage Market Update:
Navigating Inflation and Global Rate Shifts
Welcome to our August 2023 Mortgage Market Update, where we break down the latest developments affecting the housing and mortgage sectors. In this edition, we delve into the impact of rising energy prices on inflation, consumer spending, and the mortgage market. Additionally, we explore the global landscape, including the European Central Bank's actions and the potential implications for mortgage rates. As we approach the next Federal Reserve meeting, we'll also discuss what to expect in the weeks ahead. Stay informed and prepared with our comprehensive insights into the ever-evolving world of mortgage finance.
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Inflation Data and Energy Prices: In August, the Consumer Price Index (CPI) saw a 0.6% increase from July, mainly due to higher energy prices. Core CPI, excluding food and energy components, rose by 0.3% from July and was 4.3% higher than a year ago, down from 4.7% the previous month.
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Inflation Trends: While core CPI has decreased from its peak of 6.6% in September 2022, it remains well above the Fed's target of 2.0%. The battle against inflation has been slow, primarily due to persistently high shelter (housing) costs, which continue to drive up prices.
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Consumer Spending: Despite higher prices and credit card rates, consumer spending remains strong. Retail sales in August surged by 0.6% from July, exceeding expectations. Much of this increase was driven by higher gasoline prices. Strong spending was also seen in clothing and electronics stores, although sales at restaurants and bars posted more modest gains.
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European Central Bank (ECB): The ECB raised benchmark interest rates by 25 basis points in an effort to combat inflation. This marked the tenth consecutive rate hike, bringing rates from negative levels to a record high. The meeting statement suggested that this could be the last rate increase in the current cycle, as rates are expected to help reduce inflation over time.
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Future Outlook: The upcoming Fed meeting is not expected to result in a change in the federal funds rate, but investors will be looking for guidance on potential rate increases later in the year. Economic data for the week includes Housing Starts and Existing Home Sales, with a light schedule overall.