Those who say Hawaii's real estate market has stagnated couldn't be further from the truth. The latest Hawaii Life Q2 Market Report reveals significant growth across various metrics. Compared to last year, luxury home sales have surged, the number of sold listings has increased, the average price per square foot has risen, and inventory has expanded, providing more options for potential buyers.
Hawaii Island continues to captivate luxury buyers, particularly those drawn to its resort destinations. Let's delve into the numbers and explore what they reveal!
Report Highlights
Inventory continues to grow.
Sold listings are up.
The median sold price is up.
The price per square foot rose.
Download a full copy of the report here:
Residential 3m+ Luxury Market Overview
Luxury Homes Sales are Up From 2023, Buyers Are Drawn to Resort Destinations.
"Hawai'i Island's western shoreline continues to draw luxury buyers to its scenic beaches and resort properties. The number of pending and sold residential estates nearly doubled in the first half of 2024 compared to this time last year, indicating the island's appeal to investors."
Residential Market Snapshot
Median Sold Price Hits 2024 High in June, Broader Inventory Gives Options to Price-Sensitive Buyers.
"Much of Hawai'i Island is price sensitive. We are seeing this play out as buyers look to get the most value from their purchase by waiting for the right opportunity and favoring move-in ready homes."
Residential Market Overview
Median Sold Price
"Median sold price trended up in Q2, and Q2 prices are up year over year (YoY). Many buyers seem to be favoring single-family homes that require fewer repairs or renovations to help control costs."
Average Price Per Square Foot
"Ppsf trended down in Q2 but is higher than this time last year. This lift in ppfs versus last year makes sense as home prices are up in 2024 and buyers are favoring move-in-ready residences."
Inventory
"Inventory climbed in Q2, while pending sales are up and sold listings are down in June. These fluctuations are fairly normal in the Hawai'i Island market given the diversity of inventory across the island. Both Q1 and Q2 inventory is higher than 2023."
Days on Market
"In Q2 days on market (DOM) increased from April to May then dropped in June. May 2024 saw the highest number of DOM since April 2023. Buyers are waiting for the right opportunity and shopping for interest rates, while sellers are in a lull as the market adjusts."
Months of Inventory
"Months of inventory hit a high point for the year in June at 4.9, well above the same time last year. Influencing factors moving into Q3 will be buyers adjusting to interest rates and sellers making pricing concessions."
10 Year History
"Median sold price rose 71.1% in the last decade. There is less residential inventory now than 10 years ago and homes sell more quickly at closer to asking price indicating a strong market. Average DOM is flat versus last year and homes sell at 6.4% higher median sold price."
Sales by Property Type
Interestingly, condo and land sales decreased compared to last year, while home sales increased, showing us where the buyers see the most value.
Looking Forward
Buyers and Sellers Are Both Likely to Make Concessions in Order to Close Deals Going Into Q3.
"Buyers and sellers seem to be at a bit of a standoff in Q2 but we expect both will start to adjust to the current market. Based on buyer price sensitivity we anticipate motivated sellers in some markets to accept price decreases moving into Q3."
What do I make out of this data?
Hawaii's real estate market remains strong, even if it isn't as frantic as it was two years ago. The market has become more balanced and healthier. Buyers are more price-conscious and savvy, seeking value in home purchases and favoring move-in-ready homes.
Sellers are becoming more realistic in pricing their properties and making them appealing to potential buyers. It cannot be stressed enough—your property will sell if priced correctly!
The Big Island, in particular, and Hawaii, in general, remain highly appealing to investors, especially when considering the 10-year market performance.
Hawaii continues to be a desirable destination for luxury buyers, thanks to its perfect climate, laid-back lifestyle, breathtaking nature, and luxury resorts.
The real estate market is ever-changing, especially with new legislation, such as buyer agreements, vacation rental rules, and the overall economic and geopolitical situation. However, Hawaii has always been a safe haven and will likely continue to be for years to come.
If you have questions about this report or want real estate advice, please get in touch with me!
Download the full report below.
Looking for properties in Hawaii? Check out my active listings!
Ta Da!
Aloha,
Jan
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