Corcoran Pacific Properties is pleased to present a closer look at the luxury real estate market in Hawaii, showcasing detailed statistical analysis of Kauai, Oahu, Maui and the Island of Hawaii for July 2021.
Overall, Hawaii’s luxury real estate market remains in high demand, for both attached and single family properties. In a similar trend, Hawaii is also experiencing unprecedented demand from tens of thousands of additional US tourists wishing to visit – current projections indicate that 2021 may well become one of the busiest on record.
As demand for attached luxury properties continues to increase month over month, there was a further uptick of 7.5% in sales during July, compared to June. This was not unexpected as Hawaii’s tourist season has always driven sales of vacation properties. Buyers looking to purchase in the luxury single family home market did experience a little respite during July, as the pace of sales slowed slightly.
Inventory levels have also gradually stabilized for single family homes over the past few months, although they are still 38% lower compared to July 2020. However, in the attached market, inventory levels continue to decrease month over month, and were 50% lower in July 2021 compared to July 2020. But, again this is not unexpected given the lack of condominium sales last year.
The median price for single family homes continues to rise, showing a 20% increase across all the Hawaiian Islands, when compared to July 2020, with Maui seeing the most significant increase at 51% comparatively.
Although the median price for attached properties has decreased by 13% in comparison to July 2020, it is important to note that this is due to a significant increase in the number of low-mid level luxury condominiums being sold this year, compared to 2020.
For example, during July 2021, on Oahu there were 62.4% more sales than on Maui, with median sold prices of $875,000 and $1,648,000 respectively. Whereas in July 2020 there were only 55% more sales on Oahu, compared to Maui, and the median sold prices were $900,000 and $2,120,000 respectively.
As we move towards the fall months there is an expectation that the market will remain strong, but with an easing off on the pace of demand and number of transactions. However, if global travel resumes it will bring international investors, and if the US tourist market remains at its current density, then there could be a further upward pressure on the luxury real estate market.
As always, a real estate expert familiar with local trends is the best resource to navigate a specific market.
To view the full report, please click here.