O'ahu Real Estate Market Report – February 2025

O'ahu’s housing market saw shifting dynamics in February, with rising inventory and softer demand affecting prices and sales pace. Single-family home sales dropped 6.7% to 167 transactions, while condos declined 12.3% to 293 sales. Pending sales, a key demand indicator, also fell, down 13.4% for single-family homes and 2.3% for condos year-over-year, though both saw a modest month-over-month increase.

Supply continued to grow, with single-family home inventory rising 21.5% and condos surging 55.6%. New listings declined 4.7% for single-family homes but increased 20.3% for condos, reflecting more choices for buyers. As a result, price trends diverged—single-family home prices hit a record $1,185,000 (+10.2%), while condo prices dropped to $494,000 (-3.6%).

Homes also moved at different speeds. Single-family homes sold faster, with median days on market down to 23 days (-23.3%), while condos took longer at 48 days (+23.1%). The months supply of active inventory grew to 3.1 months for single-family homes (+10.7%) and 5.8 months for condos (+61.1%), signaling a shift toward a more balanced market.

It remains uncertain whether this slight shift is driven by interest rate volatility or concerns over how fiscal policy will shape the economy in 2025. That said, Sellers, especially in the condo market, should price competitively as inventory builds. Buyers, on the other hand, have more options and negotiation power, particularly in the condo segment, while single-family home prices remain strong.

 

This report reflects information about re-sales of existing properties only and does not include new home sales. All the MLS information is com­piled from sales reported during the cited months; this data is Known only after closing of escrow. The time delay between the signing of a sales contract and the closing of escrow is usually between one and three months. This report is provided as a service to HBR members. Note: Percentage change compares data from February 2025 to February 2024.

What Are Deed Restrictions?

Before you buy a home, reach out to me, so I can look into any potential deed restrictions that limit how you can build upon or use your property.

Deed restrictions are regulations imposed either by the local community or a homeowners association. These regulations can be found in the county clerk’s property records, the builder or planned community developer’s plans, and through homeowner associations’ Covenants, Conditions and Restrictions (CC&Rs).

Restrictions are required for cities to effectively operate services and to protect the rights and property values for all owners. This explains why adding a second story or operating a business out of your home requires a permit.

Homeowner association CC&Rs are designed to protect property values, foster public safety, and prevent disputes. HOAs typically want owner occupants only, and don’t allow rentals. Homes are built to conform to specific sizes, materials, colors and housing styles to make the community more attractive. Regular lawn care, exterior maintenance, and common area maintenance keep home values higher and make the community more desirable.

My Surefire Home Buying Steps

Housing market conditions change rapidly, with fluctuating interest rates, price and availability of homes. I can help you with the following suggestions:

• Step 1: Be financially prepared
  • Prequalification for a mortgage loan tells you what kind of loan is best, the interest rate you’ll pay, how much you can spend on the purchase price of a home, and whether you’ll pay private mortgage insurance.
• Step 2: Be flexible
  • You may have to make compromises to your wish list, like moving further out to get the amenities you want, buying a fixer-upper instead of a new home, or getting a condo instead of a house. Be open to alternatives.  
• Step 3: Plan for the long-term
  • Building equity takes time, so plan to stay in your home long enough to “repay” your closing costs. Closing costs for homebuyers account for 2 to 6% of the purchase price so it could take five to seven years to sell at a profit or break even.