Corcoran Pacific Properties is pleased to present a closer look at the luxury real estate market in Hawaii, which includes detailed statistical analysis of Oahu, the Island of Hawaii, Maui and Kauai for August 2022.
Similar to trends reported in the North American luxury market report article on page 33, the current market data for the state of Hawaii also reflects the luxury market is transitioning. A review of market activity for the month of August suggests that the Hawaii real estate market continues to experience a gradual softening to the pace of buyer demand combined with longer days on market. Of the major islands, the luxury single-family market in Oahu remains the most favorable to sellers, while Maui and the island of Hawaii moved toward more balanced market conditions. Kauai experienced its first indication of a move toward a buyer’s market in over 18 months. In the attached luxury property market, all islands still remain favorable to sellers.
While the pace of the luxury market is slowing here, as well as on the mainland, there are two important factors that moderate the transition as it relates to Hawaii. Firstly, home prices have continued to rise, albeit at a slower rate. Secondly, compared to pre-pandemic levels, the number of sales for the single-family market is 73% higher (104 sales in August of 2022 compared to 60 in August of 2019), and are nearly double for the attached property market (144 sales in August 2022 compared to 73 in August 2019).
Upon review of the most recent trends, it is best to bear in mind that homes typically go under contract a month or more before closing, therefore August data, in most cases, reflects decisions made in early spring/summer when market conditions were different. It is also best to recognize that gradual drops in demand tend to reduce buyer competition and home-price growth correspondingly. As market conditions continue to evolve, Hawaii may be poised to a return to pre-pandemic market conditions and seasonal adjustments to the pace of, and demand for, real estate in the islands. It is also important to bear in mind that visits to Hawaii from parts of Asia that were largely closed due to the pandemic are just beginning to reopen to a segment of the market that has yet to reveal a level of renewed interest in Hawaii.
As always, a real estate expert familiar with local trends is the best resource for navigating the specific and varied real estate markets within the islands of Hawaii, particularly during times of transition. If you have questions or wish further information, please contact your Corcoran Pacific real estate specialist for answers and guidance.