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 October 2021.
This month’s North American report raised the dilemma and repercussions of the declining level of inventory in the luxury real estate market across the US and Canada. It recognized that demand is chronically outpacing new inventory entering the market and addressed the impacts and compromises for the luxury buyer.
In light of these findings, this month we are taking an in-depth look at Hawaii’s inventory levels to ascertain if this trend is also impacting our luxury market.
Overall, the level of inventory has declined since last September for single family homes from an average of 650 per month in 2020 down to 375 as of October 2021. In the attached market the numbers have dropped from the mid 750s down to 458 in October 2021. Unlike the single-family market, there has been a slight upward inventory level trajectory for attached properties over the last two months.
Last month we reported that the speed had come off the pace of sales. Single family property sales have remained at an average of 150 per month, and although inventory levels have continued to fall gradually, October still registered 153 sales. In the attached market inventory levels rose again and sales increased from 174 in September to 191 in October – providing the conjecture that these two factors are probably intrinsically tied at this current time. A review of the number of new listings for each of the islands shows, while there are inventory level percentage differences year over year, that they are all registering declining levels.
Oahu has been the least affected by lack of inventory, showing an average decline of 30% for single family and 25% for attached properties in 2021 compared to 2020. Maui shows a slightly higher difference year-over-year for single family homes with an average decrease of 40% in 2021, but a significant difference for attached property levels with an average drop of 60% in 2021 compared to 2020.
Kauai inventory levels have gradually dropped month over month for both single family and attached properties, changing from as little as an 8% difference in March to a 56% difference in October 2021. In contrast, Hawaii Island inventory levels for single family homes have consistently been around 55% less, and attached properties upwards of 60% less, than their corresponding months in 2020 since March 2021.
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.