Corcoran Pacific Properties is pleased to present a closer look at the luxury real estate market in Hawaii, which includes detailed statistical analysis for your in-depth review on Oahu, the Island of Hawaii, Maui, and Kauai for June 2023.
This month we look back at the first six months of 2023 to analyze the status of the luxury real estate market in Hawaii as we hit the half-year mark.
The start of the year saw a market in flux, continuing from the last quarter of 2022, which saw sellers and buyers hesitating in their real estate decisions given geo-political concerns, rising inflation, interest rates, and overall uncertainty about the economy.
While there seems to be a disconnect in today’s market between perception and reality – given most media reports focus on the comparative decrease in the number of sales – in fact, month over month, the volume of properties purchased has increased.
Data across all the islands shows that in the single-family market, sales since January have risen 123% (from 52 in January to 116 in June), and in the attached market, 97.5% (from 80 in January to 158 in June).
Reviewing the monthly data for each island over the last six months, although unit sales are lower than their comparative months in 2022, statistically, both single-family and attached markets have, for the most part, remained either favorable to sellers or balanced.
What has created this anomaly, especially when monthly inventory levels are also comparatively higher than last year, why does the luxury market remain statistically a seller’s market?
The reason is two-fold, the level of inventory has still not returned to pre-Covid levels mainly because the number of new listings entering the market remains significantly below traditional norms. Secondly, the proportionately faster increase in sales over the last six months has countered the increase of inventory levels.
The reality is that today’s market bar any future extraordinary events, providing a more sustainable and stable environment for both buyers and sellers, giving each the time and understanding to adjust to current expectations and requirements.
In a snapshot, we do not expect to see any dramatic price decreases while inventory levels remain low but also anticipate that buyers will likely be more discerning in their value-for-money expectations.
As in all markets, there are always opportunities and challenges for buyers and sellers for certain property locations, types, and price points. It is important to work closely with a real estate expert familiar with local trends as they are the best resource to navigate the specific and varied markets found within the Hawaiian Islands.