Corcoran Pacific Properties is pleased to present a closer look at the luxury real estate market in Hawaii, which includes a detailed statistical analysis for your in-depth review on Oahu, the Island of Hawaii, Maui and Kauai for November 2023.
What will surprise many, given the seemingly lethargic nature of the current market, is that for the most part the number of sales and median sold price points do not vary greatly compared to November 2022, for both the entire luxury market as well as for each of the islands.
Comparatively, the number of sales in this segment of the market has fallen by only seven from 79 to 72 for single-family homes and by four from 107 to 103 for attached properties, whereas the median sold price has risen by 2% and 12% respectively.
However, there is one significant change – which is not a negative given that the luxury market has, since early 2021, registered inventory levels well-below traditional norms – as of November 2023 the number of homes available for sale has started to more closely resemble pre-covid levels.
Across the Hawaiian Islands, for both single-family homes and attached properties, this increase in inventory has resulted in the luxury segment showing signs of a transition to a buyer’s market – except for Kauai where greater demand for attached properties offset the increase in inventory.
It is not unexpected for sales to decline month over month in the last quarter of the year – in fact prior to 2020 its was the norm. Indeed, in the new year this comparative increase of inventory could foster greater activity in high-end sales, because it can be argued that it was primarily due to the lack of supply, as opposed to a lack of demand during 2023, that often proved to be the roadblock for buyers.
If mortgage rates continue to fall, as many economists predict and as investment dollars are withdrawn from CD’s and similar investments, we could see a gradual uptick in sales as buyers are drawn to take advantage of the greater number of homes available for sale.
However, given the propensity of home sellers not to reduce their prices, buyers should still not expect to see any sudden price drops, rather instead the opportunity will lie in finding properties that match their requirements and offer greater value for money in lifestyle amenities and features deemed requisite.
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.
One final message: Season’s greetings and best wishes for a happy, healthy, and prosperous holiday season from all of us at Corcoran Pacific Properties.