q2 Oahu Affordability Index - Page 2

About This Report

Our Quarterly Affordability Index shows a clear continuation of the decline in affordability in the Oʻahu Housing Market since Q2 of 2020 .
The Second Quarter of last year saw both the decline of Median Home prices and a decline in interest rates , leading to affordability levels higher than they have been since 2012 . However , since then Single- Family Home prices have steadily increased . When comparing the Second Quarter of 2020 to the Second Quarter of 2021 , the price of the Median Single-Family home has risen by about $ 209,000 , or 27.1 %. While interest rates remaining low has somewhat offset the problem of rising costs , the continuing high demand for housing may cause further decline in Single-Family Home Affordability in the near future .
This index accounts for a range of factors to create a single measure of how affordable real estate is on Oʻahu . The metric can be tracked and measured over time , giving an insightful snapshot into one of the most consistently-strong real estate markets in the world .
The ability of the average resident making the average income to become a homeowner is indicative of the reality of living in a place , and gives insight into the state of the local economy ; understanding the factors that impact affordability can also provide prospective homebuyers and potential sellers with information they need to take best advantage of a challenging set of market conditions .
“ While affordability overall continues to be a long-term problem in our market , we do see that one important factor - historically low interest rates - can create an important opening in families ’ ability to get into their dream homes . We want to put this tool in people ’ s hands now , to aid in informed decision-making before rates rise to pre-pandemic levels and low inventory put even more pressure on already recordhigh prices ,” said Scott Bradley , President and Owner , Berkshire Hathaway HomeServices Hawai ’ i Realty .
Scott Bradley Co-President , Partner