The Honolulu, HI metro area housing market is currently experiencing a notable shift, characterized by declining sales prices and increased inventory. As of February 2025, the Median Sales Price stands at $663,500, reflecting a significant year-over-year decrease of 11.4%. This decline suggests a cooling market, potentially offering more opportunities for buyers.

In contrast, the Median List Price has seen a more modest decrease of 1.4% year-over-year, now at $688,500. This discrepancy between sales and list prices indicates that sellers may need to adjust their expectations to align with current market conditions. The median Price Per Square Foot has slightly increased by 0.9% to $675.06, while the Median List Price per square foot has risen by 6.7% to $713.80, suggesting that while overall prices are down, certain property features may still command a premium.

The number of Homes Sold has decreased by 14.4% year-over-year, with 456 Homes Sold in February 2025. Pending Sales have also declined by 8.1%, totaling 717. This reduction in sales activity is accompanied by a 13.7% increase in inventory, now at 3,202 homes, and a substantial rise in the Months of Supply, which has surged by 170% to 7 months. These figures indicate a shift towards a buyer's market, with more options available and less urgency to purchase quickly.

The Median Days on Market have increased by 14% to 91 days, further emphasizing the slower pace of sales. The average sale to list ratio has slightly decreased by 0.3% to 97.9%, indicating that homes are selling closer to their list prices, but with less frequency above list price. The sold above list ratio has dropped by 4.2% to 17.8%, reinforcing the trend of reduced competition among buyers.

Price Drops have become more common, with a 6.5% increase year-over-year, now affecting 19.9% of listings. This trend suggests that sellers are becoming more willing to negotiate and adjust prices to attract buyers. Additionally, the percentage of homes going off the market within two weeks has decreased by 6.4% to 25.7%, indicating a slower turnover rate.

Overall, the Honolulu housing market is exhibiting signs of a transition towards a more balanced or even buyer-favorable environment. With declining sales prices, increased inventory, and longer market times, buyers may find themselves in a stronger negotiating position. Sellers, on the other hand, may need to adjust their strategies to remain competitive in this evolving market landscape.