As I reviewed the Q3 Hawaii Life Market Report released last month, several key points stood out: "motivated sellers," "balanced pricing," "sellers getting closer to their asking price," "shorter days on market (DOM)," and "increased inventory." The data shows that many indicators are moving into positive territory. While it's clear the real estate market is shifting, the big question remains: where is it heading?
I once heard someone say, "The best remedy for high prices is high prices." There's some truth to that, and it seems to align with what we're observing now. After the market frenzy of a few years ago, some sellers held onto the mindset of "high prices," even as the market dynamics had shifted. I always advise my clients that properties priced appropriately will sell. Over time, as sellers faced slower sales, extended days on the market, and cautious buyers, they became more motivated. This likely explains the trend toward more balanced pricing and increased closed sales.
You can let me know what you think in the comments, but now, let's dive into the numbers!
Report Highlights
Current inventory is up 24.4% YoY.
Sold listings are up 0.9% YoY.
The median sold price is up 8.6% YoY.
The price per square foot is up 21.6% YoY.
Download a full copy of the report here:
Residential 3m+ Luxury Market Overview
Median Sold Price up Over Last Year, While Pending and Sold Listings Exceed 2023 Levels.
"Pending and sold listings are above last year's numbers in the luxury market. There is less inventory in the market this year, and homes are selling faster. Another encouraging sign is that sellers are getting closer to their asking price versus last year."
Residential Market Snapshot
September Finishes Strong With Closed Sales From Summer Buyers and Motivated Sellers.
"Sellers seem motivated to close this year, and this was reflected in the balanced pricing we saw in the last few months with summer sales. A drop in interest rates opened up options for both conventional financing and refinancing, making buyers a bit more cautious."
Residential Market Overview
Median Sold Price
"Median sold price is on an upwards trend with a highpoint for the year in June. Motivated sellers are keen on pricing for current trends to avoid added days on market."
Average Price Per Square Foot
"We've seen fluctuations this year in ppsf. July marked the highest ppsf this year, followed by a dip in August and September."
Inventory
"Overall, inventory has trended upwards this year with July as a high point. This has created opportunities for buyers and sellers willing to consider flexible financing."
Days on Market
"Days on market (DOM) trended upwards from January to May, dipped in June, and has trended downwards since July. Pricing right for the current market has contributed to sellers lowering their DOM in recent months."
Months of Inventory
"Months of inventory has stayed relatively flat in 2024 with a small lift from August to September. It is worth noting that inventory varies across the island and by neighborhood, as the real estate markets in East and West Hawai'i are quite different."
10 Year History
"When looking at 2024 versus last year and 10 years ago, we see many positive indicators. Median sold price and ppsf are up over last year and 10 years ago. Also, sellers get just as close to asking price as last year. Inventory is up, but we are close to last year in terms of pending and sold listings to date."
Sales by Property Type
Home sales were slightly up (0.9%) compared to last year, but condo and land sales continue declining despite the interest rate drop. That might result from higher home insurance and HOA fees, as well as rising inflation, making it more expensive to build in Hawaii.
Looking Forward
Higher Inventory Creates Buyer Opportunities. High Season and Interest Rate Drops Likely to Drive More Sales.
"More inventory, including upcoming new construction projects, means a more balanced pricing strategy for sellers hoping to close this year. Sellers are feeling optimistic about the coming high season. In the meantime, buyers will enjoy the options available from inventory levels."
What do I make out of this data?
Although the real estate market is constantly evolving and often unpredictable, the current trends indicate a return to normalcy and greater overall health.
With increased inventory and recent interest rate reductions, opportunities are expanding for both buyers and sellers—whether they're looking to upgrade, downsize, or make a fresh start. Additionally, a review of the past 10 years of data reaffirms that Hawaii remains an excellent place to invest in real estate.
As motivated buyers and sellers gear up for action and the high season fast approaches, now could be the perfect time to take the first steps if you're considering selling your property in Hawaii. If you have any questions or need guidance to get started, don't hesitate to reach out—I'm here to support you every step of the way!
Download the full report below.
Ta Da!
Aloha,
Jan
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