The median price for single-family home resales on O‘ahu hit a record high of $1,185,000 in February, according to the latest statistics from the Honolulu Board of Realtors.
That's 10.2% higher than the median sale price of $1,075,000 recorded in February 2024, and higher than the previous record of $1,153,000 set in May 2022. The median price of a condominium, however, declined 3.6% year-over-year, dropping from a median price of $512,500 in February 2024 to $494,000 last month.
There were 167 single-family home sales in February compared to 179 the prior year, according to the report, which used data from the BOR's multiple listing service system. That's a 6.7% decline. Condominium sales dipped even more, with 293 sales in February 2025 compared to 334 sales in February 2024, a declined of 12.3%.
Demand during the height of the Covid-19 pandemic drove home sales to record levels, but the Board of Realtors said in an announcement last week that unlike previous periods where records were driven by heightened competition, "recent activity suggests a more balanced market."
Trevor Benn, president of the Honolulu Board of Realtors, told Aloha State Daily that a more balanced market means that no single group "is dominating sales or artificially driving prices."
"Unlike past bubbles — such as the Japanese investment surge — what we're seeing now is a natural rise in prices due to organic demand," he said in an emailed response to questions from ASD.
"That said, fluctuations in monthly median price figures, which is the middle price point for all the transactions in the given month, can be more volatile as they represent a small sample of sales and the sales distribution — the number of home sales — at different price points varies from month to month," Benn continued. "For example, this month’s single-family home transactions included 16 fewer sales in the $899,999 and below range, and four more sales priced at $900,000 and above. That shift in distribution naturally produces a higher median price."
But when you look over a longer time span and across a more diverse sample of sales, Benn, the president and founder of Forward Realty, says the overall market has been "relatively stable."
"When looking at long-term trends, the price movement over the last three years has been relatively flat," he said.
What does all this mean for the average home buyer?
Benn said the record-high median price for single-family homes may seem like a pretty big milestone, but told ASD that the context is important.
"Median prices fluctuate month-to-month, and seasonal factors — such as a drop-off in December activity followed by fewer closed transactions in the new year — can impact the numbers," he said. "While the market has seen periods of rapid growth, overall, median prices have remained relatively stable over the past three years. The median price in December 2021 was nearly the same as in December 2024, and Hawai‘i’s real estate market tends to experience cycles of acceleration followed by stretches of stability. Over the past 40 years, the average return on Hawai‘i real estate has been about 5%."
For buyers today, Benn says interest rates play a bigger role in affordability than any single month’s price point.
"The key is to focus on personal needs and financial preparedness," he continued. "Interest rates influence purchasing power, and if they drop after a home purchase, refinancing is always an option. HBR’s Realtors work closely with buyers to help them make informed decisions, ensuring they understand both short-term trends and long-term market stability."
Benn said a major challenge for single-family home buyers is the lack of inventory and limited choices.
He says that "Patience is critical because the right home might not be on the market today. Agents are having to get creative—writing letters to homeowners, seeking off-market opportunities, and working proactively to match buyers with potential sellers."
Buyers also should be prepared to compromise. Benn says "finding a home that checks every single box is rare."
The condo market also is facing a number of challenges, according to Benn: rising insurance costs, aging infrastructure, fire safety requirements and shifting buyer demographics, all of which he says have led to longer selling times and declining condominium prices, "creating a challenging environment for sellers but potential opportunities for buyers willing to be patient."
When asked what potential homebuyers should know when shopping in the current market, Benn says buyers should investigate any pending assessments before making a purchase.
"A condo may seem like a good deal, but if the building announces a $40,000-per-unit assessment a few months later, it could become a financial burden," he said. "Talking to the management company and reviewing financial records is essential to understanding what costs may be coming."
Stephanie Salmons can be reached at stephanie@alohastatedaily.com.
