Elite 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 Big Island of Hawaii for May 2020.
Hawaii’s lockdown continues with the Governor announcing that the 14-day quarantine rules for arrivals will be extended through to July 31st, 2020. Internally, Hawaii is starting to open up for businesses and inter-island travel is scheduled, without quarantine, for June 16th.
Tourism and real estate, key industries for Hawaii, have both been significantly impacted by these restrictions, so there will be an ongoing challenge that weighs up safety and the health-care system against such economic impacts. Hawaiian officials may opt for the “Travel With Aloha” initiative, which proposes all those who want to travel to Hawai‘i receive a rapid turnaround test for COVID-19. If they test negative, they could be exempted from the stipulations of the mandatory, 14-day travel quarantine.
Overall the real estate market statistics show that there has been as much as a 65% decrease in sales over the last 60-80 days, when compared to the same period in 2019. Interestingly the residential luxury market has not necessarily followed the same trend as the traditional market when we review each island.
May’s figures for Maui indicated a drop of 68% for single family homes and 62% for condo sales in the traditional market, but in the luxury market the number of sales remained consistent for single family and dropped less than 30% compared to May 2019. In both markets single family median prices increased, but in the attached market prices diverged with traditional median prices rising by 22% but the luxury market decreasing by 31%.
Oahu’s statistics for May also showed single family home prices increased, although condominium prices declined and both saw a drop in the number of sales compared to 2019. The luxury market followed suit with single family prices increasing by 14% and attached homes declining by 25%.
In contrast to the traditional market, inventory and sales for luxury single family homes remained comparable to 2019, although attached sales numbers fell by a staggering 73%.
The Island of Hawaii’s luxury market probably had the most comparable single family figures to the traditional market, with price points down by approx. 10% and sales by approx. 42%. However, attached luxury property prices only fell by 3% compared to the traditional market’s 22%, although both saw approx. 64% less sales.
In Kauai, once again the numbers diverged as the traditional single family market saw a 65% decrease in sales and a median price increase at 17%, whereas the luxury market reported only a 50% drop and a 41% price increase for the month of May. In the attached market the numbers were poles apart, with the traditional market seeing a decline of 47% in sales and 37% decrease in the median price and the luxury market reporting a decline in sales of 83% but no significant change in the median price point.
To view the full report, please click here.