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 July 2022.
Hawaii’s luxury real estate market continues to experience a cooling off period as the number of sales fell approximately 20% month-over-month and inventory levels increased 2.3% for single-family homes and 8.5% for attached properties.
The changes in numbers seem even more significant, especially inventory levels, when compared with July 2021’s data. Sales declined 31% for single-family homes and 25% for attached properties and inventory levels rose 21% and 57% respectively.
However, the luxury median price remained consistent ranging from $2.1-$2.2 million for a single-family home and $1.3-$1.4 million for an attached property since the start of 2022.
“While inventories of both single family and attached homes have recently increased it is notable that both sectors of housing-for-sale remain below their 10 year average,” stated Gregg Antonsen, SVP Luxury Sales for Corcoran Pacific Properties. “In view of these moderate inventory adjustments, I do not expect to see significant price changes in the near term.”
This market status is affording current buyers both the opportunity and the time to find a home in Hawaii that suits their requirements, without the pressure of increasing prices and multiple offers. Much of this demand now comes from buyers who previously found it challenging or were not interested in getting into bidding wars that was so typical in last year’s market.
Despite increasing interest rates, it should be recognized that rates are still historically low and given the current propensity of purchasing a home for the long-term and its intrinsic value, rather than immediate financial return, these buyers no longer feel the pressure to purchase until their preferred home becomes available.
This explains why the luxury real estate market remains strong but equally why we are seeing sales taking a longer time compared to last year.
Another continuing trend that remains prevalent in Hawaii is demand for homes that are truly move-in ready. While this type of purchase has been very common for vacation rental properties, there has been a significant uptick in demand for residential properties where the new owner can simply “bring their toothbrush”!
As always, a real estate expert familiar with local trends is the best resource to navigate the specific and varied markets found within the Hawaiian Islands.
To view the full report, please click here.