O'ahu Real Estate Closes 2025 Strong: December Market Recap

O'ahu Real Estate Closes 2025 Strong: December Market Recap

O'ahu's residential real estate market ended 2025 on a high note, with December data showing renewed momentum across both single-family homes and condominiums. For buyers, sellers, and investors watching the market, the numbers paint a clear picture of where things stand heading into 2026.

Single-Family Homes: Seller's Market Holds Firm

December 2025 saw 228 single-family homes sold on O'ahu — an 18.4% increase compared to December 2024. The median sales price reached $1.1 million, up 4.3% year-over-year, while the median days on market held at a brisk 22 days.

Active inventory stood at just 635 homes, down 5.9% from the prior year. For context, anything below 800 active listings on O'ahu has historically signaled a seller's market. With only 2.5 months of supply, sellers continue to hold a meaningful advantage — particularly for well-priced, move-in-ready properties.

Condo Market: Inventory Shifts Toward Balance

The condo segment also saw increased activity, with 360 units sold in December — up 11.5% year-over-year. However, the pricing trend diverged from single-family homes: the median condo price was $512,000, down 5.2% from the prior year's record high.

The key story in condos is inventory. Active listings climbed to over 2,100 units, up 12.3% year-over-year. After spending most of 2025 above six months of supply (the threshold for a buyer's market), condos dipped to 5.9 months of supply by year-end — suggesting the market may be transitioning back toward balance.

What's Driving Buyer Activity?

Despite the typical holiday slowdown, buyer interest picked up noticeably in late December. Several factors are contributing:

• Slightly declining mortgage rates are improving affordability at the margins
• Improved buyer confidence as the broader economic outlook stabilizes
• Pent-up demand from buyers who sat on the sidelines during 2023-2024

The National Association of Realtors projects 2026 will be a healthier, more active year for real estate compared to recent cycles.

What This Means for You

If you're considering selling: With inventory still historically tight and buyer activity increasing, early 2026 could be an excellent window to list — especially before more competition enters the market later in the year.

If you're considering buying: Preparation is everything. Whether financing or paying cash, having your pre-approval and documentation ready will be critical as competition returns.

If you're investing: The spread between single-family appreciation and condo price softening creates potential opportunities for investors who know how to analyze deals properly. Tools like iCAP Underwriter can help you stress-test scenarios before committing capital.

Sources: Harcourts Island Real Estate December 2025 Market Report; Hawai'i Life Q4 2025 Year-to-Date Market Report (January 2026).