Luxury Sales in Hawaii Smash Records
Deal volume in luxury and ultra-luxury home sales during the first three quarters of 2021 in Hawaii hit a record-shattering $3.698B.
Luxury and Ultra-Luxury Sales Crush Records
During the first three quarters of 2021, luxury home sales (defined as valuation at $3M or more) in Hawaii soared +235% compared with the same time period in 2020, according to Hawaii Life’s Luxury Market Report. Simultaneously, ultra-luxury sales (defined as valuation at $10M and above) skyrocketed +603% over the previous-year period.
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“It’s just been like a rocket ship,” said Matt Beall, CEO of Hawaii Life Real Estate. “ Referring strictly to the data, it’s just an incredible, incredible event for the market.”
Making it even more incredible is that many of these lux and ultra-lux sales have been all-cash deals.
Pace of Sales “Aggressively Quick”
Beall called the sales pace “aggressively quick” with some $20M deals closing inside of 30 days. Beall said, “I think that pace caught not just the profession off guard, but also the sellers. You know, it’s like…that’s not normal.”
Beall referred to some buyers as saying, “I’m… (going to) offer (fill in the price) on this house sight unseen…for a two-week closing…13-day due diligence…fly in on the 12th day…meet with all the inspectors…and move in on the 14th day.”
Luxury Market
During thee first three quarters of 2017, Hawaii’s luxury market experienced 317 transactions and $1.67B in total sales.
In 2021 over the same period, the state’s lux market experienced 634 sales transactions of homes priced above $3M. That sales volume boils down to some 16 lux home sales per week for 39 straight weeks.
These more than double gains occurred at a time when foreign buyers were absent in the market due to COVID travel restrictions. Beall said, “It’s really significant to me that all of this, or the great majority of it, has been done domestically.”
According to the data, the average luxury home in Hawaii sold for more than $6M, an increase of +12.4% y/y at an average price of $1,795/square foot.
Ultra-Luxury Sales Stratospheric
Hawaii’s ultra-luxury market (+$10M) experienced more than six times the number of deal transactions and an increase of +603% in dollar value during the first three months of 2021.
Across the state’s eight major islands, the Big Island of Hawaii saw the most growth at +1,582%, or 37% of the state’s total within this ultra-luxury category. The island of Maui experienced an increase of +644% in sales volume. Kauai’s sales volume jumped +640%.
Luxury and Ultra-Luxury Inventories Dwindling
As elsewhere in the world, diminishing inventory is pushing up prices. That said, Beall noted his optimism about these top two tiers of the market because of deep demand. Beall said, “I don’t actually feel like it’s super frothy yet and that it’s all just going to come crumbling down…I’m actually weirdly bullish about value…If you look at any inventory chart, it’s like, down and to the right, and flatline. Prices are being pushed up by a lack of supply.”
Thanks to CNBC.
