Under-a-million-dollar activity on Oahu: the high spot of a low month

While the full effects of the pandemic are yet to be realized, the demand for single- family homes in April was greatest in listings under $1 million. According to the most recent tracking data from Honolulu Board of REALTORS®, price-sensitive buyers zeroed in on homes priced between $600,000 and $999,999. In fact, nearly two-thirds of the single-family homes sold in April — 62.9-percent — fell within that range.

However even in this market segment — with unemployment at record levels and an extension of the Oahu stay-at-home order until May 31 — sales were down 28 percent, compared to the same time last year.

“Eighty-eight percent of the offers accepted by seller’s during the month of April were under a million,” according to Kalama Kim, principal broker at Coldwell Banker Pacific Properties.

The breakdown: 51 of the 248 single-family homes sold in April were between $700,000 and $799,999 — the bulk of the total sales. There were 41 homes sold between $600,000 and $699,999, 33 sales between $800,000 and $899,999, and 31 sales between $900,000 and $999,999.

“We still haven’t seen the full effect of COVID-19 on the real estate market in Hawaii,” adds Kim. “May closings will portray a more accurate picture of what happened during the months of March and April, because transactions take 30-60 days to close and be recorded.”

At the end of April, the City and County of Honolulu lifted restrictions on real estate operations to allow some in-person showings, albeit with strict guidelines. Property showings must be by appointment only, buyers must be pre-qualified, and no more than three individuals (including the agent) are allowed at one appointment. HBR encourages open houses to be conducted virtually.

A lingering effect of the stay-at-home order is a significant slowdown in the number of new listings. New single-family home and condo listings in the $1 million-and-up range saw the largest declines, down 51.4 percent and 58.1 percent, respectively, when compared to this time last year.

Currently, HBR’s website (hicentral.com) shows 90 active listings between $700,000 and $799,999, a price typically striking a balance between affordability and value with buyers. Here are two examples (shown below):

$738,888
91-1038 Kai Kukuma St.
Re/Max Honolulu

Located in Ocean Pointe, this four-bedroom, three-bath home on a 4,283-square-foot lot, includes this professionally landscaped, low-maintenance yard (see photo). With a full bedroom and bath downstairs, it is great for multi-generational living. It also includes earth-friendly photovoltaic panels — nine owned and 21 leased and under warranty, with an option to purchase — as well as two leased Tesla batteries. For a virtual tour, visit player.vimeo.com/video/414089179.

$700,000
86-303 Puhawai Road
Adams & Company

Live and work on 1.28 acres of country- zoned land in Waianae with more than 40 active fruit trees, including avocado, mango, fig, star apple, grapefruit, orange, lemon, lime, star fruit, coffee, sour cherries, dragonfruit and lilikoi. Located 10 minutes from pristine beaches, this home has three bedrooms and one-and-a-half baths, with plenty of room to expand.