As we find ourselves close to the end of 2022, it is interesting to start to compare this year’s statistics against previous years.
What will surprise many, given the highly debated status of the current market, is, for the most part, the number of sales, price points, and supply of inventory does not vary greatly compared to the numbers of 2021, and against pre-pandemic levels, we can see that 2022 has been a very strong year for luxury properties.
Of course, it’s important to recognize that the first 4-5 months of the year saw high levels of sales, continued price increases, and a declining level of inventory. However, even though the market has slowed especially in respect to the number of sales each month since July, properties are still selling and at rates above historical norms.
If we take a snapshot of one price band, $1-2 million single-family homes across all the markets, the overall number of sales is only 120 lower than 2021 (2,380), but more than double 2019 (1,177) and there is still one month to go. The months of remaining supply are only slightly higher at 4.5 months compared to 4.3 in 2021, and less than half when compared to 2019’s 10.7 months of remaining inventory.
The median price point in November, in both the single-family and attached market, remains stable. The single-family market median sold price saw its first increase since July, climbing from $2,060,625 to $2,072,813, whereas it fell in the attached market from $1,313,125 to $1,242,625.
The number of sales has declined again compared to October, but then again, this is both reflective of the time of year and the lack of new inventory entering the market. A perfect example of how the lack of inventory is affecting sales is on the island of Kauai, where all attached inventory between $800,000 to $1 million sold in October, with the only active listing available now under offer in November.
Expect the luxury market to continue to soften as we head into the winter months, but equally for prices to remain at near record levels as the lack of new inventory will continue its influence.
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.