Luxury Market Report, Q3 2023: Statewide

Hawai‘i Luxury Market Report for Q3 2023 navigates a shifting landscape as varying market trends begin to surface.

The luxury real estate scene on Hawai‘i Island has seen a significant turnaround since its low point in the second quarter of 2022, with a noticeable stabilization in June. Despite a slow start in 2023, there's been a resurgence in interest for both homes and condos across Hawai‘i Island. The market is currently shaped by two opposing forces: the positive note of slowly increasing available houses and the negative aspect of interest rates that have yet to peak, creating an intriguing landscape for future sales.

Maui has seen some notable shifts in Q3 2023. Despite a consistent increase in luxury home availability over the past two years, sales remain steady, with historically low inventory fueling competition in South Maui, the North Shore, and Upcountry markets. Sales prices, however, experienced a significant drop between Q2 and Q3 2023, possibly magnified by recent destructive events. The coming months will reveal whether this market change is natural or linked to the wildfires, with growing anticipation of increased demand in luxury real estate.

In Kaua‘i there's been a gradual recovery since the market’s low point in February 2022, echoing trends on other islands. Homes were lingering on the market for extended periods from August 2022 until the third quarter, where a notable drop from Q3 2022 to Q3 2023 became evident. We're now witnessing an upward trend in sales since January, potentially indicating a boost in luxury home sales in Kaua‘i's future. Inventory is gradually on the rise, although significant price reductions remain scarce.

In Q3 of 2023, there was a modest decrease in available homes for sale in O‘ahu, compared to the same period in 2022. The average time homes spent on the market in the third quarter dropped to 66 days from 87 days in Q2 2023. While the beginning of 2023 started off slowly for luxury home sales on O‘ahu, recent data suggests a potential uptick in sales activity.

Join in taking a closer look at each island’s residential real estate statistics for the luxury market in the most recent quarter.

Hawai‘i Island Luxury Market Statistics Overview

There are currently 49 active residential listings above $3M on Hawai‘i Island, an increase of 22.5% compared to 40 in Q3 2022, giving inventory a year-over-year boost.

There were 13 luxury home sales on Hawai‘i Island in Q3 2023, a decrease of -7.1% from 14 sales in Q3 2022.

Newly pended single-family homes put under contract above $3M were 13, which is the same as the same period in Q3 2022.

For the third quarter of 2023, Hawai‘i Island saw a drop in the price of luxury residential properties. The median sold price of single-family homes was $5.7M, a decrease of -7.1% from the median sold price of $6.138M during Q3 2022.

For Hawai‘i Island’s luxury market, the average price per square foot rose from $1,661 in Q3 2022 to $1,927/foot, an increase of 16% comparing Q3 2022 to Q3 2023.

Oahu Luxury Market Statistics Overview

There are currently 101 active residential listings above $3M on O‘ahu, a decrease of -5.6% compared to 107 listings in Q3 2022.

There were 31 luxury home sales on O‘ahu in Q3 2023, the same number of sales in Q3 2022.

Newly pended single-family homes put under contract above $3M were 36, an increase of 50% over the same period in Q3 2022, in which 24 homes were under contract.

For the third quarter of 2023, O‘ahu saw a rise in the median price of luxury residential properties. The median sold price of single-family homes was $4.695M, an increase of 25.2% over the median sold price of $3.75M during Q3 2022.

For O‘ahu’s luxury market, the average price per square foot declined from $1,276 in Q3 2022 to $1,187/foot for a decrease of -7%.

Maui Island Luxury Market Statistics Overview

There are currently 74 active residential listings above $3M on Maui, a decrease of -3.9% compared to 77 in Q3 2022.

There were 20 luxury home sales on Maui in Q3 2023, which is the same number of sales in Q3 2022.

Newly pended single-family homes put under contract above $3M were 13, a decrease of -23.5% over the same period in Q3 2022, in which 17 homes were under contract.

For the third quarter of 2023, Maui saw a decrease in the median price of luxury residential properties. The median sold price of single-family homes was $4.038M, a decrease of -21.6% over the median sold price of $5.15M during Q3 2022.

For Maui’s luxury market, the average price per square foot has decreased slightly, dropping -6% from $1,178 in Q3 2022 to $1,164/foot in Q3 2023.

Kaua‘i Luxury Market Statistics Overview

There are currently 43 active residential listings above $3M on Kaua‘i, an increase of 16.2% compared to 37 in Q3 2022.

There were 11 luxury home sales on Kaua‘i in Q3 2023, a decrease of -21.4% from 14 sales in Q3 2022.

Newly pended single-family homes above $3M were 12, a decrease of -14.3% over the same period in Q3 2022, in which 14 homes were put under contract.

For the third quarter of 2023, Kaua‘i saw a decrease in the median price of luxury residential properties. The median sold price of single-family homes above $3M was $3.4M, a decrease of -31.3% over the median sold price of $4.95M during Q3 2022.

For Kaua‘i’s luxury market, the average price per square foot fell from $2,105 in Q3 2022 to $1,939/foot, a decrease of -7.9% comparing Q3 2022 to Q3 2023.

A Glance at the Future of Hawai‘i Real Estate

Hawai‘i's luxury real estate market has seen significant shifts in recent years. The impact of the pandemic, coupled with rising interest rates, introduced a level of unpredictability. With fewer properties for sale, the types of luxury properties being sold varied greatly from month to month, causing a fluctuation in property prices.

“We are now at a place where in some markets we have more off-market listings in the ultraluxury space than we do on-market,”

Hawaiʻi Life CEO Matt Beall, Hawaii Business Magazine

When we take a broader view over the past decade, Hawai‘i's real estate market has displayed a remarkable overall appreciation in value, surpassing the surge witnessed during the pandemic and signifying the market's resilience.

As we delve deeper into the aftermath of the wildfires on Maui, we need to keep a close eye on the situation. In the short term, the Maui luxury market may experience a boost in inventory and a dip in median prices. However, in the long term, as demand rebounds, inventory levels are anticipated to decrease and median prices will likely reach a new normal. As always, attractively priced properties will consistently garner significantly greater interest across the islands.

Want to learn more about Q3? Jump into Market Insights by Hawai‘i Life CEO Matt Beall