Hawaii News Now asked me to get some custom statistics for their 10 pm top story about the latest Fed rate hike.
I was able to pull together some interesting stats that show a huge drop in the sold over asking by month and a huge increase by month in sellers dropping their price.
“The 30-year fixed mortgage rate hit the six percent mark for the first time since 2008 – rising to 6.01 percent – which is essentially double what it was a year ago,” MBA Associate Vice President of Economic and Industry Forecasting Joel Kan said in a news release.
More than 300 single-family homes and more than 500 condos sold in August, which is near pre-pandemic annual average closed sales per month for single-family homes and above average for condos. Median sales prices remained on pace with recent months, with August’s single-family home median sales price rising 7.2% year-over-year to $1,125,500 and the condo median sales price marking a nominal decline of 0.3% to $498,500.
“As market activity continues to slow with the rise in interest rates, it’s important for buyers to remember that homeownership is still possible,” said Chad Takesue, president of the Honolulu Board of REALTORS®. “More than 250 properties on O‘ahu, most of which were condos, sold for under $500,000 last month.”
While new listings fell 17.2% for single-family homes and 15.7% for condos, active inventory increased 43.3% for single-family homes and 12.9% for condos, though this lags behind pre-pandemic levels. A larger share of new listings remained active at the end of the month – 61% compared to 46% last August for single-family homes and 59% compared to 48% for condos – which is another indication of the cooling market. In both markets, properties that sold in August were on the market for a median of 13 days.
The share of homes listed for 30 days or longer increased 12.5 percent in July compared to a year earlier, with 61.2 percent of homes now sitting on the market for a month or longer, according to a report released Tuesday by Redfin.
The annual increase in stale listings is the biggest since April 2020, when the housing market temporarily ground to a halt at the onset of the coronavirus pandemic. It’s also one of the largest year-over-year decreases since Redfin started tracking the data point in 2012, according to the report.
This is an interesting chart that shows even the COVID downturn was not too bad, and right after that, the market increased dramatically. You can see we have not had any serious downturns since the 2008 crash.