The Hawaii housing market in February 2025 presents a complex landscape, characterized by declining sales prices and a significant increase in inventory. The Median Sales Price for homes in Hawaii stands at $740,000, reflecting a year-over-year decrease of 4.6%. This decline in sales prices is mirrored by the Median List Price, which is currently $775,200, down 3.5% from the previous year.

Despite the overall decrease in sales and list prices, the Price Per Square Foot has shown resilience. The median Price Per Square Foot has increased by 4.6% year-over-year, reaching $705. Similarly, the Median List Price per square foot has risen by 2.1%, now at $739. This suggests that while overall prices are declining, the value of space remains strong.

The number of Homes Sold has experienced a significant drop, with 740 Homes Sold, marking a 16.9% decrease from the previous year. Pending Sales have also declined by 6.8%, with 1,144 transactions currently in the pipeline. New Listings have decreased by 9.0%, totaling 1,160, indicating a potential slowdown in market activity.

Inventory levels have surged, with a 19.3% increase year-over-year, bringing the total to 5,719 homes available on the market. This increase in inventory has contributed to a substantial rise in the Months of Supply, which now stands at 7.7 months, a 230.0% increase from the previous year. This indicates a shift towards a buyer's market, as more options become available for potential buyers.

The Median Days on Market have increased by 21.0%, with homes now taking an average of 99 days to sell. The average sale to list ratio has slightly decreased to 97.4%, down 0.6% year-over-year, suggesting that sellers are receiving slightly less than their asking prices. The percentage of Homes Sold above list price has also decreased by 3.4%, now at 16.1%.

Price Drops have become more common, with 21.5% of listings experiencing a reduction, up 6.1% from the previous year. Additionally, the percentage of homes going off the market within two weeks has decreased by 10.2%, now at 22.7%, indicating a slower pace of transactions.

Overall, the Hawaii housing market in February 2025 is characterized by declining sales prices, increased inventory, and a slower pace of transactions. While the value per square foot remains strong, the market is shifting towards a more balanced state, offering potential opportunities for buyers in the coming months.