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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 January 2022.
Along with a new year, we review if there has been an emergence of new trends in Hawaii’s luxury real estate market. Are we finally seeing, as indicated in the North American Review, a settling of the luxury market into a calmer year, or are January’s statistics, as they say, ‘the calm before the storm’?
Certainly, the single-family market is recording, for the first time in 16 months, a small drop in the number of sales on a year over year comparison. There was also a slight decline in the median sold price compared to January 2021. However, the level of luxury homes for sale is still significantly less, at nearly 30%, compared to the same period in 2021.
Therefore, it is more likely that the sales volume decline was created by a lack of available inventory – especially ‘desirable’ properties – rather than an actual weakening of demand.
The attached property market in January 2022 maintained its strength, with median sold prices for all the islands remaining consistent. Overall, there was only a slight decline in the number of sales in January 2022 compared to previous months, but, more significantly, sold numbers were nearly double in comparison to January 2021. While inventory levels dropped slightly against 2021’s numbers, by 25%, generally, there continues to be a big enough inventory pool to maintain these high levels of sales.
Oahu’s luxury real estate market in January displays the biggest differences; the single-family market showed a 28% decrease of sales compared to 2021, while the attached market grew substantially by 177%. International travel restrictions could be the significant reason for the single-family home’s drop in sales, as Oahu is a highly desirable destination for Asian buyers.
Maui saw growth in both its luxury market segments with sales growing by 46% for single-family homes and 100% for attached properties; the latter also seeing a significant decrease in available inventory in January. Kauai and the Island of Hawaii saw a comparative drop in sales in January for both segments of their luxury markets – however, the level of inventory also fell substantially between 40-50% for both which, as we indicated earlier, would have had a significant bearing on the opportunity for sales.
While the market may have quieted for the first month of the year, expectations are that with international travel restrictions loosening further as we head towards the spring, Hawaii will not only see buyers from the mainland but an increase of demand from foreign buyers.
As always, a real estate expert familiar with local trends is the best resource to navigate a specific market.
To view the full report, please click here.
