HONOLULU, Hawaii (HawaiiNewsNow) - The median price of a single-family home on Oahu reached new highs in February, crossing the $900,000 threshold for the first time.
The record comes as Hawaii’s housing market continues to experience strong demand amid low supply.
Real estate firm Locations said the median price for a single-family home on Oahu was $920,000 in February. That’s 20% up from the same month last year.
Local real estate experts say buyers should not be discouraged.
“That’s just the median. That’s not the lower end,” said Hazel Unciano, a realtor with Coldwell Banker.
The median price means that half of homes go above that price and half sell for below it.
The report showed that in just two years, the median sale price on Oahu increased by more than $100,000. And demand continues to outpace supply. February saw the greatest number of home sales for the month since 2006. There was a 6% increase in single-family home sales and a 42% increase in condo sales.
“For me, it’s all local families and I think that is the case for many others,” said Judy Sobin with Judy Sobin and Associates.
Locations said part of the reason for the increase in median price is due to a high percentage of bid-ups.
Roughly 47% of single-family homes and nearly 28% of condos were sold above the asking price. This trend in bidding for homes highlights the current competitive market conditions for housing on Oahu.
The report also showed that single-family homes sold in record time, with homes being on the market for a median of 10 days, which is the lowest on record.
“Lack of homes for sale continues to be the biggest challenge to the market, putting upward pressure on home prices and fueling competition among buyers,” said Locations President and CEO Jason Lazzerini.
He said that single-family home listings are scarce, with only 403 active listings. He added that there are currently 1,425 condos for sale.
Lazzerini also said that interest rates are still near record lows, which offers prospective homebuyers greater purchasing power.
Local lawmakers are trying to strike a balance.
House Speaker Scott Saiki says they have allocated hundreds of millions of dollars to help finance affordable housing projects.
“It’s these kinds of projects that will help to make a difference,” Saiki said.