As we look back on the Oʻahu real estate landscape in 2025, one thing is clear: the market wasn’t as frenzied as in recent years, but it still wasn’t easy for many locals to find an affordable home.

According to Hawaii News Now, overall home sales on Oʻahu remained relatively steady throughout the year, signaling a cooling from the multiple-offer, bidding-war environment that carried much of the island’s market in past cycles. That means buyers and sellers alike had more time and opportunity to make thoughtful decisions — a welcome change for many in the industry.

But the quiet in transaction activity doesn’t tell the whole story.

What “Steady” Really Means

While sales volumes held their ground in 2025, prices did not drop. In fact, median home values stayed high, with many properties — particularly in desirable neighborhoods like Kakaako — continuing to command premium prices. Out-of-state buyers helped push the luxury segment upward, with a notable increase in $2 million-plus transactions.

This situation has created a two-tiered reality:

• More options on the market, which can ease competition and give buyers breathing room.

• Prices that remain out of reach for many local families, especially first-time buyers.

With median home prices hovering near the $1.1 million mark and mortgage rates lingering around 6%, monthly payments for a typical household can quickly climb to levels that are difficult for working families to sustain.

What Buyers and Sellers Should Know

Here are a few key takeaways that can help homeowners, buyers, and investors as we head through 2026:

• Less competition doesn’t necessarily mean lower prices. Just because bidding wars are easing doesn’t mean homes are affordable.

• Inventory has improved, giving buyers more choices. More homes on the market often help balance supply and demand.

• Affordability is still the top concern for many residents — and that’s shaping the way people approach long-term plans for homeownership.

Looking Ahead

As 2026 unfolds, industry experts and local leaders will be watching two big questions closely:

1. Will interest rates become more favorable for buyers?

2. Will more affordable housing options — including workforce and entry-level units — come online?

These factors could play a major role in how the Oʻahu housing market evolves in the months ahead.

Source: Hawaii News Now