The Oahu real estate market is presenting a nuanced picture for potential homebuyers and investors. According to KHON2's recent report, home prices on Oahu have dipped for a second consecutive month, albeit slightly. Despite Oahu's distinction as having some of the highest home prices nationally, real estate professionals are suggesting it's still a favorable time to invest. This advice stems from the anticipated interplay of decreasing prices and potential adjustments in mortgage rates.
The shifting market dynamics are also evident in recent data. Rocket's Honolulu County housing market report from April 2025 indicates price variations depending on the number of bedrooms, with 4-bedroom homes experiencing an increase. Furthermore, a report from Locations Hawaii reveals mixed trends in the statewide median sale price. While home prices saw a 2% increase, condo prices decreased by 7% in the second quarter of 2025 compared to the previous year. This report also noted a decrease in sales activity and an increase in market times for both homes and condos, signifying a cooling market.
For those considering a purchase, the advice to act now is driven by the anticipation of future changes in mortgage rates. As Business Insider notes, some major U.S. cities are experiencing home price drops, which creates opportunities for buyers. Coupled with the possibility of lower mortgage rates, this period presents an attractive window for prospective homeowners and investors to enter the market. However, it is important to note that the market is not the same across all property types.
Experts also highlight the increasing inventory and the shift toward a buyer's market. Yahoo News indicates rising inventory levels for both single-family homes and condos, which could give buyers more negotiating power. Prospective buyers may also want to consult with mortgage professionals, like those at Myers Capital Hawaii, to secure competitive rates and explore financing options.
