O'ahu Market Report - December 2024

O‘ahu’s housing market closed out 2024 on a strong note, with solid year-over-year growth in both single-family home and condo sales. Single-family home sales surged by 25.3%, while condo sales climbed 18.8% compared to December 2023.

Median prices also saw steady gains. The median price for single-family homes reached $1,054,500—a 5.8% increase from last year. Condos hit a new record median price of $540,000, up 5.9% from December 2023 and slightly surpassing the previous peak of $536,000 set in March 2023.

Sellers were active, too. New listings for single-family homes increased by 12.2%, while condo listings jumped by 29.2%. Pending sales also saw growth, rising 6.6% for single-family homes and 6.9% for condos.

While the single family home results were expected given the low level of inventory and steady demand, the condo numbers were stronger than expected. The large increase in condos for sales (56% increased compared to last year) was a threat to slow down the condo market.

2024 Year-End Snapshot

Looking back at the year as a whole, O‘ahu’s housing market was marked by both growth and ongoing affordability concerns:

• Total sales increased modestly by 1.7%, with single-family home sales rising 9.1%, while condo sales dipped slightly by 2.5%.
• Median prices moved upward: single-family homes climbed 4.8% to $1,100,000, and condos saw a modest 1.3% bump to $515,000.
• Seller confidence was evident, with new listings up 13% for single-family homes and 18.9% for condos.
• Inventory levels grew: active listings for single-family homes rose to 675 (up 12.5%), while condo inventory jumped significantly to 1,928 (a 56.2% increase).

Sales activity remained especially strong among more affordable single-family homes priced under $1 million, which made up about 40% of transactions. Meanwhile, the luxury market—homes priced over $1 million—saw a notable 19.2% boost in sales. Higher-priced condos, those above $500,000, also outperformed lower-priced units.

Interestingly, 29% of single-family homes sold above asking price, holding steady with 2023 numbers. However, for condos, that figure dipped from 21% in 2023 to 16% in 2024.

One trend worth keeping an eye on is the rising cost of condo fees. Over the last two years, average monthly fees have surged by 28% for studios and 17–23% for larger units, adding to the affordability challenge for condo owners.

How to Avoid Becoming House-Poor

According to the U.S. Department of Housing and Urban Development (HUD), affordable housing means that you should be paying no more than 30% of your gross income for housing costs, including mortgage principle and interest, property taxes, home insurance premiums, and utilities. In reality, home ownership costs much more when HOA fees, maintenance, and repairs are included. 

You can avoid becoming over-extended by taking the following steps:

Buy below your means. Your lender will qualify you for the maximum you can afford, so be wise and buy a less expensive, smaller home. Use the difference for savings and investments. You can always move later.

Plan for rising costs. Property taxes are based on sales prices, so you’ll only pay the seller’s rate until the next assessment which will be much higher next year. Home insurance, utilities, etc.  will rise in cost most years.

Plan for the long-term. It takes time to build equity in real estate. When you buy a home, plan to live there for at least seven years, then rent it out.

What are Federal Home Loan Qualifications?

The “American Dream” of homeownership is supported by federal programs that either insure loans made by lenders (such as FHA, VA, and USDA) or purchase loans from lenders to package them into mortgage-backed securities (like Fannie Mae and Freddie Mac).

Loans that meet the standards set by Fannie Mae and Freddie Mac are called conforming loans, and can only be used for borrower-occupied, single-family homes up to four units. 

FHA conforming loan qualifications include:

• FICO® score at least 580 = 3.5% down payment.
• FICO® score between 500 and 579 = 10% down payment.
• MIP (Mortgage Insurance Premium) is required.
• Debt-to-Income Ratio
• The home must be the borrower's primary residence.
• Borrower must have steady income and proof of employment.

VA loans require a Certificate of Eligibility, but require low or no down-payments. USDA loans also require no money down and are only eligible for qualifying rural homes.

Conventional loans are not government-insured. Borrowers must have 620 or higher credit scores.