As we’ve said before, Oahu’s housing market makes for a historically reliable investment. Over the past 40 years, both single family homes and condos have made a steady march in the upward direction.
40 Years of Growth
The upshot is that the Oahu market tends to go up, sometimes a lot and sometimes a little. Every now and then some backpedaling is in order. But overall, there’s one general direction: up.
Luxury Condo Spike
If you look closely at the data, you’ll see that condo prices jumped substantially over the last two years. However, that data is a bit deceiving because two luxury condo developments in Kakaako, Park Lane and Waiea – 1118 Ala Moana, drove almost all of the massive market spike. Together those two projects have sold 331 units over the last two years ranging from $1.1 million to $22 million, many of them in the $4 million to $6 million range.
Steady As She Goes
Ignoring those outliers for the moment, Oahu has delivered average housing price appreciation of roughly 3% to 6% per year, no matter whether you look at the 1-year, 4-year, 20-year, or 40-year timeframes.
Unlike past cycles of rapid growth followed by a flat or corrective market, since 2011 Oahu has shown very consistent, measured home price appreciation. This has made for a stable and predictable market, substantially benefitting both buyers and sellers.
No one knows where the market is headed, of course, but the current signs point to more of the same: steady, plodding, 3% or 4% annual growth rates island wide.