Corcoran Pacific Properties is pleased to present a closer look at the luxury real estate market in Hawaii, which includes a detailed statistical analysis of Oahu, the Island of Hawaii, Maui, and Kauai for March 2023.
The luxury real estate market saw a definite uptick in the number of sales during March as compared to the first two months of 2023. However, of more significance is the gradual increase month over month of sales, as this reflects growing confidence in the market.
Sales have climbed steadily from 52 in January, 67 in February to 83 in March for the single-family market – a 59.6% increase. In the attached market the numbers have almost doubled, climbing from 80 in January to 99 in February and 159 in March.
Inventory levels remained consistent during the first quarter of 2023, averaging around 500 single-family homes and 650 attached properties per month, despite new inventory entering the market during February and March, as these gains were negated by the increase in sales.
In comparison to the first quarter of 2022, sales are about 40% lower, but as we have stated previously, the last couple of years were the outliers rather than the norm, and therefore should not be used as a true barometer of the demand in the luxury market.
Instead, if we look back to the first quarter of 2020 (prior to the start of the pandemic), the comparative statistics reveal a very different picture. Sales in March 2023 were nearly 70% greater (83 vs 49) in the single-family market and over 98% (159 vs 80) in the attached market in comparison to March 2020.
While the overall trend shows strength and confidence in the luxury market, not all markets are equal across the Hawaiian Islands.
The Island of Hawaii and Maui both saw a marked increase in single-family sales for March compared to February; 70% (24 vs 14) and 63% (18 vs 11) respectively. Closed sales on Oahu reflected a 5% increase (38 vs 36), while Kauai experienced a 50% downturn (3 vs 6).
In the attached market, Oahu saw their number of sales nearly double compared to February (103 vs 58), while Kauai saw an increase of 54% (17 vs 11), the Island of Hawaii rose by 41% (17 vs 12) and Maui by 22% (22 vs 18).
As in all markets, there are always opportunities and challenges for buyers and sellers for certain property locations, types, and price points. The opportunity to work closely with a real estate expert familiar with local trends is the best resource to navigate the specific and varied markets found within the Hawaiian Islands.