Oahu Real Estate Market Report - May 2025

Oahu Real Estate Market Update – May 2025

May brought continued signs of adjustment across Oʻahu’s housing market, with notable slowdowns in sales activity—particularly within the condo segment—paired with steady pricing and a gradual buildup in inventory. Elevated interest rates and affordability concerns continue to shape buyer behavior, creating a more deliberate and price-sensitive environment for both purchasers and sellers navigating today’s shifting market.

May Market Report

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

Sales Slow Significantly, but Prices Hold Ground

Oʻahu’s housing market continued its gradual deceleration in May, with transaction volume falling across both segments. Single-family home sales slipped 5.6% year-over-year to 235 closed transactions, while condo sales fell more steeply—down 21.8% to 374 units. Year-to-date, sales remain below 2024 levels by 5.3% for single-family homes and 7.2% for condos, signaling ongoing caution among buyers.

Despite slower sales, prices showed resilience. The median single-family home price jumped 8.3% from last May to $1,175,000, edging up 0.4% month-over-month. Condominiums posted a modest 1.0% annual gain to $500,000, though this reflected a 1.0% decline compared to April. Price stability in the single-family segment suggests sustained demand in higher-end markets, while condo pricing continues to respond more directly to affordability pressures.

Longer Time on Market Reflects Buyer Caution

Buyers are taking more time to act. The median days on market for single-family homes rose to 21 days (up from 14 last year), while condos lingered even longer at 39 days, compared to 25 in May 2024. This shift reflects increased due diligence amid elevated interest rates and higher monthly costs.

Mid-Range Market Faces Strongest Pullback

Sales in the mid-price range saw the sharpest declines. Single-family homes priced between $800,000 and $1,099,999 dropped by 30.2%, driven by slower activity in areas like ʻEwa Plain and Pearl City. In contrast, Kailua saw a 58.8% sales surge. On the condo side, volume softened across most regions, though higher-end units above $1 million held steady, showing just a slight drop.

Interest Rates & Fees Shape Buyer Behavior

As of early June, the average 30-year fixed mortgage rate hovered at 6.85%, adding continued pressure on monthly affordability. These rates, combined with rising maintenance and association fees, are encouraging buyers—particularly in the condo market—to be more selective and price-sensitive.

Inventory Builds, Offering More Buyer Choice

Supply expanded modestly in May. New single-family listings rose 13.6% to 392, with notable increases in the $800,000 to $999,999 range—led by ʻEwa Plain, which contributed over a third of those listings. Active single-family inventory grew 1.6% month-over-month and 27.8% annually, with one-third of listings seeing price reductions.

Condos saw similar trends: new listings were up 4.6% to 688, with nearly half priced between $300,000 and $599,999. Active condo inventory grew 1.8% from April and surged 54.8% year-over-year to 2,556 units. Forty percent of these listings had undergone a price cut, indicating a market that's adjusting to match evolving buyer expectations.

What This Means For You

With buyers taking more time, inventory rising, and prices holding steady in key segments, today’s market presents opportunities—for both strategic sellers and patient buyers. Whether you’re looking to list, purchase, or simply understand your options in this shifting landscape, expert guidance can make all the difference.

Reach out to your trusted Agency advisor today to explore what’s next.