Corcoran Pacific Properties is pleased to present a closer look at the luxury real estate market in Hawaii, which includes detailed statistical analysis of Kauai, Oahu, Maui, and the Island of Hawaii for March 2022.
First quarter data for 2022 shows the continuation of a strong luxury real estate market for all of the Hawaiian Islands in both the single family and attached property segments. There is even a sense that a calmer equilibrium has been established, although whether it will last as we head towards the tourist season remains to be seen.
In the single-family home market, the pattern for the last three months shows consistency in all three key parameters used to interpret its trends.
The number of sold properties shows a slow increase month over month, except for Kauai which had a stronger February. Inventory levels remain low, at approximately 50% of typically expected levels, but have remained even over the last six months (again, except for Kauai which saw a decline) – this could explain why sales are lower in March. Median monthly sold prices have remained fairly consistent too.
As can be expected as we head towards the vacation season, we are starting to see an uptick in the number of sales and perhaps the first indication of rising inventory levels. However, inventory levels are still close to 25% lower than March 2021 and unless this changes, so will the impact of a lack of opportunity and availability for buyers in the foreseeable future.
In the attached market, which includes both townhomes and condominiums, the pattern for the first quarter of 2022 shows a market that outperforms the first quarter of 2021.
The number of sold properties increased, not only month over month, but there was a significant 37% increase in sales in March 2022 compared to March 2021. Inventory levels have fallen slightly year-over-year but for the most part, have remained at a consistent level over the last six months. The median monthly sold price has also remained stable, although March prices show an upward trend of around 6% compared to March last year.
If inventory levels remain stable or even start to increase, then the attached market will continue to offer prospective buyers both choice and availability, which is ideal for a market in high demand.
Demand for luxury properties throughout most markets in North America shows no sign of declining, in fact, as sales numbers continue to increase – despite low inventory – this reflects a drive by the affluent to keep investing in the luxury real estate market.
As always, a real estate expert familiar with local trends is the best resource to navigate a specific market.