Oahu Real Estate Market Update: June 2024 Lender Report Analysis
As we dive into the summer months, the real estate market in Hawaii continues to show dynamic activity. The June 2024 Lender Report by Old Republic Title provides a comprehensive overview of the real estate transactions and lender activities across the islands, with a particular focus on Oahu. Here’s a detailed analysis and summary of the key findings from the report.
Mortgage Interest Rates: A Historical Perspective
The report highlights the mortgage interest rate trends from July 2022 to June 2024. Over this period, we have seen fluctuations that reflect broader economic conditions:
- 15-Year Fixed Rate Mortgage (FRM): In June 2024, the rate stands at 6.16%*.
- 30-Year Fixed Rate Mortgage (FRM): The rate for this popular loan type is currently 6.86%*.
These rates are crucial for both buyers and investors as they directly impact borrowing costs and affordability. The gradual increase in interest rates over the past two years is proof of a tightening monetary policy, in response to inflationary pressures.
Sales Activity by Island
The report breaks down sales activity across the four major islands, with Oahu leading in both the number of sales and total sales amount:
- Oahu: 788 sales totaling $736.8 million
- Maui: 192 sales totaling $347.7 million
- Kauai: 685 sales totaling $316.5 million
- Big Island: 71 sales totaling $104.4 million
Oahu's dominance in sales volume underscores its position as the economic and cultural hub of Hawaii. The high number of transactions and substantial dollar volume reflect a robust demand for real estate on the island.
Loan Activity by Island
Loan activity is another critical metric, providing insights into borrowing trends and the financial health of the market:
- Oahu: 970 loans amounting to $1,159.8 million
- Maui: 245 loans amounting to $189.0 million
- Kauai: 322 loans amounting to $172.3 million
- Big Island: 100 loans amounting to $237.8 million
Oahu again leads in loan activity, indicating strong lender confidence and a healthy appetite for property investments. The substantial loan amounts suggest that buyers are leveraging financing to secure high-value properties.
Key Takeaways for Buyers and Investors
Interest Rates: With the current interest rates for 15-year and 30-year FRMs at 6.16% and 6.86% respectively, potential buyers should factor these into their affordability calculations. Locking in rates sooner rather than later might be beneficial if the upward trend continues.
Market Activity: Oahu remains a hotbed for real estate transactions. Whether you’re a first-time homebuyer or a seasoned investor, the island offers numerous opportunities. The high sales and loan volumes highlight a vibrant market with diverse property options.
Investment Potential: The consistent loan activity indicates lender confidence, which is a positive sign for investors. High loan amounts on Oahu suggest that properties with significant value are being financed, pointing to potential high returns on investment.
Conclusion
The June 2024 Lender Report provides valuable insights into the current state of the real estate market in Hawaii, with Oahu standing out in terms of both sales and loan activity. As a real estate professional, staying informed about these trends helps me better serve my clients, ensuring they make well-informed decisions whether they are buying, selling, or investing.
If you have any questions or need personalized advice on navigating the Oahu real estate market, feel free to reach out. Let’s make your real estate dreams a reality!
Kasandra Shriver, RB 22606 (808) 221-8904 | kas@kasandrashriver.com
*These figures are provided as a snapshot of the market, and subject to change based on market, borrower circumstances, and economic conditions. The information in this blog post is deemed reliable, but is not guaranteed.
