A Tale of Two Markets: Oahu's Real Estate Landscape in 2025
Oahu's real estate market in 2025 presented a starkly divided picture, with single-family homes reaching record-breaking median prices while condominium values experienced a significant softening, marking the lowest point in nearly three years. This divergence reflects evolving buyer priorities, economic pressures, and inventory dynamics across the island.
The Ascent of Single-Family Homes
In a testament to persistent demand and limited supply, single-family home prices on Oahu achieved an all-time high in 2025. The median sales price for these properties surged, driven by a robust market that saw eager buyers competing for a finite number of homes. This upward trend underscores the enduring desirability of single-family living in Hawaii, even amidst broader economic uncertainties.
Record-Breaking Median Prices
Throughout 2025, Oahu's single-family home market consistently demonstrated strength. Reports from the Honolulu Board of Realtors indicated that the median price for single-family homes not only reached a peak but also surpassed previous records, with some months seeing prices exceed $1.1 million. For instance, in November 2025, the median price stood at $1.1 million, a slight dip from the $1.115 million a year prior, but still indicative of a strong market. Earlier in the year, February 2025 saw the median price hit a near three-year high of $1,185,000 thegardenisland.com. This consistent performance suggests a market driven by factors beyond seasonal fluctuations.
Driving Forces Behind Home Sales
The surge in single-family home prices can be attributed to several key factors. A persistent inventory shortage, a common challenge across Hawaii's housing market for decades, continued to fuel competition among buyers thegardenisland.com. Additionally, a market adjustment in buyer demand, favoring more spacious homes, and a relatively stable interest rate environment compared to previous periods, contributed to sustained purchasing activity. The Honolulu Board of Realtors noted that even with fewer new listings, buyer activity remained strong, keeping pending sales steady staradvertiser.com. In November 2025, single-family home sales jumped 18.7% year-over-year, indicating a lively market despite the high median price of $1.1 million staradvertiser.com.
Shifting Buyer Preferences
Data from late 2025 suggests that buyers increasingly gravitated towards single-family homes, particularly in the mid- to high-end price ranges. Transactions in the $800,000 to $899,999 bracket more than doubled compared to the previous year, and sales above $2 million also saw significant increases staradvertiser.com. This trend indicates a preference for more substantial living spaces, potentially influenced by evolving work-from-home dynamics and a desire for greater privacy and autonomy.
The Softening Condominium Market
In stark contrast to the booming single-family home sector, Oahu's condominium market experienced a noticeable downturn in 2025. Sales volume decreased, and the median price fell to levels not seen in nearly three years, presenting a different set of challenges and opportunities.
Declining Condo Prices and Sales
Several reports highlighted the weakening performance of the condominium market. November 2025 saw condo sales fall by 7.3% compared to the previous year, with the median price dropping 8% to $487,450, the lowest point since February 2023 staradvertiser.com. This trend echoed earlier in the year, with February 2025 reporting a median condo price of $494,000, down 3.6% year-over-year, and sales off by 12.3% thegardenisland.com. While sales increased in the lower price ranges (below $400,000), sales at $500,000 and above saw significant declines, contributing to the overall drop in median price staradvertiser.com.
Factors Influencing the Condo Downturn
The softening in the condo market can be linked to a confluence of factors. Increased inventory levels provided buyers with more choices, shifting the market dynamics from a seller's advantage to a more balanced or even buyer-leaning environment in some areas thegardenisland.com. Condos also lingered on the market longer, with median days on market reaching a 12-year high in February 2025 thegardenisland.com. Furthermore, rising maintenance fees and insurance costs, coupled with persistent affordability challenges, may have deterred some potential condo buyers, pushing them towards more affordable single-family homes or delaying their purchase decisions thegardenisland.com. The
