Oahu Real Estate Market Report - March 2025

O‘ahu Real Estate Market: March 2025

O‘ahu's housing market ended the first quarter of 2025 with mixed results, reflecting shifting dynamics. March saw a 10.4% decrease in single-family home sales compared to the previous year, totaling 206 sales, while condo sales experienced a modest increase of 7.3%, reaching 369 units sold.

March Market Report

 Sales and Price Trends 

The median sales price for single-family homes increased by 5.5% year-over-year, reaching $1,160,000, up from $1,100,000 in March 2024. Meanwhile, the median price for condominiums remained steady at $500,000. The average sales price for single-family homes hit $1,819,326, influenced by a high-profile sale in Kāhala for $65.75 million. Excluding this exceptional transaction, the adjusted average price was $1,507,469, with no change in the median price. Condominium prices saw a 6.1% increase in the average sales price, rising to $614,751.

Year-to-date figures for single-family homes showed a 4.0% decrease in sales, with 569 transactions in the first quarter of 2025. Condo sales, however, remained nearly flat, with a slight 0.4% increase, totaling 974 sales. The median price for single-family homes increased by 7.5% to $1,150,000, while condo prices rose by 1.0% to $510,000.

 Market Distribution and Inventory Trends 

Despite the dip in single-family home sales, properties are still selling faster than before. The median days on the market for single-family homes was just 15 days, a significant improvement from 31 days in March 2024. Condominiums, on the other hand, saw longer selling periods, with a median of 40 days on the market, up from 29 days last year.

March brought an influx of new listings to the market, offering more choices for buyers. The number of new single-family home listings grew by 29.6%, reaching 377, while new condo listings increased by 21.9%, totaling 789. A higher proportion of new listings remained on the market at the end of the month, with 73% of single-family listings and 82% of condos still available, compared to 58% and 73%, respectively, in March 2024.

 Active Inventory and Regional Trends 

Active inventory continued to rise across the island. By the end of March, there were 773 single-family homes and 2,302 condos available for sale, reflecting increases of 33.0% and 54.2% year-over-year, respectively. Inventory in the single-family home market grew across all regions, with the most notable increase in the ‘Ewa Plain area, where active listings surged by 73.5%. The Central region also saw a significant increase, with listings more than doubling to 67. Condo inventory rose in every region, driven by more listings and longer days on the market. Areas like Hawai‘i Kai, Kailua, Makakilo, Pearl City, and Waipahu saw inventory more than double compared to the same time last year.

 Market Pace and Buyer Activity 

Contract signings in both the single-family and condo markets decreased from the previous year. Single-family home contracts fell by 5.4%, while condo contracts dropped by 4.3%. Notably, the ‘Ewa Plain and Pearl City regions saw the largest declines in pending sales for single-family homes, with decreases of 41 and 15, respectively. For condos, the Metro region experienced the most significant decline in pending sales, dropping from 264 to 223—a 15.5% decrease.

 Challenges for Buyers and Sellers in Today’s Market 

As we head deeper into 2025, both buyers and sellers are navigating a housing market that presents unique opportunities—and significant challenges.

For Homebuyers

1. Rising Prices in Key Segments
While increased inventory provides more choices, the uptick in single-family home prices—up 5.5% year-over-year—is putting pressure on buyers’ budgets. Even with an adjusted average sales price of $1.5M (excluding the Kāhala outlier), affordability remains a top concern for many local families.

2. Fast-Moving Single-Family Market
Homes are selling more quickly, with the median days on market dropping to just 15 days. Buyers need to act fast and come prepared with strong offers, especially in high-demand neighborhoods like Kailua, Kāhala, or the ‘Ewa Plain.

3. Financing Hurdles
Fluctuating interest rates and tight lending standards continue to impact buyers' purchasing power. Securing financing in a competitive environment requires solid pre-approval and financial readiness.

For Sellers

1. Increased Competition from Rising Inventory
Active inventory is rising across the island, especially in the condo market, where listings have more than doubled in some regions. This means sellers may need to adjust pricing strategies or invest in staging and upgrades to make their property stand out.

2. Longer Days on Market for Condos
Condo sales are showing resilience, but the median time to sell has increased to 40 days. Sellers in this segment need to be patient and realistic about market conditions, especially in neighborhoods with a glut of new listings like Waikīkī or Metro Honolulu.

3. Shifting Buyer Preferences
Today’s buyers are selective, often prioritizing move-in-ready homes with energy-efficient features, modern finishes, and flexible living spaces. Properties that don’t meet these expectations may linger on the market or require price reductions.

 Outlook for 2025 

O‘ahu's real estate market remains dynamic, with mixed trends across the housing segments. While single-family home prices continue to show strength, condo inventory is on the rise, offering more opportunities for buyers. As the market evolves, having a knowledgeable real estate agent will be crucial to navigating these changing conditions effectively.

Source: Honolulu Board of REALTORS®, compiled from MLS data