Honolulu, HI Housing Market Report

The Honolulu housing market as of December 2025 is characterized by a transition toward more balanced conditions, though it remains slightly tilted in favor of sellers due to the city's chronic inventory constraints. With a median home value of $748,245, the market has seen a marginal year-over-year decline of 0.93 percent. However, the most striking shift is the increase in time on market, which has risen to 81 days—an increase of two weeks compared to last year. This suggests that buyers are becoming more selective and are no longer rushing into transactions, despite a sale-to-list ratio of 0.99 indicating that properties are still selling very close to their asking prices.

Recent price trends reveal a notable recovery in the second half of 2025. After hitting a low point in August at $736,636, home values have climbed steadily for four consecutive months. This upward momentum reflects a resilient demand for housing in the Urban Honolulu metro area, even as inventory levels remain relatively flat with only a 0.18 percent increase year-over-year. The rental market continues to exert pressure on residents, with median rents rising 4.01 percent to $2,501, which may be pushing some long-term tenants to consider homeownership despite higher borrowing costs.

Looking ahead, both buyers and sellers must adjust their expectations to this slower-paced environment. For sellers, the increase in days on market means that pricing a home accurately from the start is critical to avoid stagnation. For buyers, the current climate offers a rare window of opportunity where they have more leverage to negotiate and more time to conduct due diligence than in previous years. While the slight annual dip in home values might seem concerning, the consistent month-over-month growth since July suggests that the Honolulu market is stabilizing and remains a solid long-term investment due to the limited geographic space for new development.