Corcoran Pacific Properties is pleased to present a closer look at the luxury real estate market in Hawaii, showcasing detailed statistical analysis of Kauai, Oahu, Maui and the Island of Hawaii for June 2021.
This month we take a look at the first six months of 2021 and analyze how the luxury real estate market has performed, while reviewing significant trends in purchasing power and affluent buyer requirements.
Similar to the rest of America, the expectation for Hawaii’s luxury real estate market in 2021 had been predicted in January to continue to show a strong demand, especially during the spring months. However, while the extraordinary level of demand for single family home sales was featured strongly in the media over the last 6 months, the greatest growth has actually been in the attached luxury market, where the number of sales still continues to increase month over month.
The trend graphs for each of the island’s luxury single family markets show a strong, but continual, decrease in the inventory levels and increase in the number of sales over the last six months. June’s statistics show that in 2021, the number of sales compared to last year is up by 329%, the median price has increased by 19% and inventory levels have dropped by 41%.
In comparison, the trend graphs for each of the island’s attached luxury market shows more dramatic decreases in the inventory levels and increases in the number of sales, especially between the months of February and May 2021. June’s statistics show that in 2021, the number of sales compared to last year is up by 365% and inventory levels have dropped by 46%.
Although the median price has decreased by 22%, it is important to note that last year’s demand trended only towards larger properties and those with their own front door, ie. mainly townhomes, which, in general, command a higher price than condominiums.
Hawaii’s residential property market has skyrocketed over the last six months and in particular the luxury segment has seen much competitive bidding, sales over asking prices and all-cash transactions. The drive by affluent buyers to own a private getaway, spaces that are large enough for their family to escape, but remain both active and connected, work from home and enable them to feel safe has been key to this influx of demand.
As we move into the summer months there is an expectation that the market will remain strong, but the pace of demand and transactions will ease off, allowing buyers a little more breathing space in which to make their decisions.
As always, a real estate expert familiar with local trends is the best resource to navigate a specific market.