The third-largest but most populous of the Hawaiian islands, Oahu is also home to the island state's capital, Honolulu, and nearly 1 million residents, or about 75% of Hawaii's population. The market for Oahu real estate is therefore a large one and is closely followed by those looking to extrapolate signs and trends in the greater Hawaiian real estate market.
The Oahu market experienced some steep drops in home values at the onset of the financial crisis that hit the U.S. economy. Many homes lost large amounts of their previous value, and the number of foreclosures on Oahu increased dramatically. The inventory of homes for sale on Oahu also steadily rose as more and more people were either forced out of or walked away from their homes and credit became harder to come by for those looking to buy.
Recently, the Oahu real estate market has fared a bit better since the downfall in the U.S. housing market first began nearly two years ago, with the Honolulu Board of Realtors calling its market "relatively steady" in July. In Honolulu, sales volume was up annually for single-family homes as was median price. Condominium sales still saw struggles, however, with both sales volume and median prices down in that category. Year-to-date, the average price of both single-family homes and condos are up, if only ever so slightly. Sales volume is up significantly in both categories as well year-to-date.
“Oahu’s post-tax credit sales landscape is quieter, as are other markets, but we seem to be weathering better than our Mainland counterparts,” said Brian Benton, President of the Honolulu Board of Realtors. “Unlike most cities, Honolulu saw its pending sales in July increase over a year ago.”