Text: CENTURY 21 Hawaiian Style / Images: CENTURY 21 / Statistics Courtesy of: Institute For Luxury Home Marketing (ILHM); CENTURY 21; Pacific Business News
The 2020 pandemic changed a lot of things, including the housing market. The good news is that the housing market in general has been showing improvement amidst economic recovery in the first quarters of 2021. In addition, all signs point to the continuation of this trend throughout the rest of 2021.
But what about the luxury markets?
According to the the Institute For Luxury Home Marketing (ILHM), sales in luxury markets across the country have seen their greatest increase since 2008. What factors could be accounting for this phenomenon?
For one, record-low mortgage rates and easier access to loans are two main factors that have opened up a window of opportunity for homebuyers amidst this unprecedented time in the real estate market. For the luxury market, these factors, coupled with the fact that people are spending more time at home and therefore placing more emphasis on the home's importance, have translated to an increased sense of buyer-awareness when choosing properties to expand their property portfolios. For homebuyers that were previously unsure about whether to enter this market, the increase in loan approvals and low mortgage rates could be the factors that account for finally making the jump.
The increasing numbers of remote workers in the workforce and increasing safety concerns due to the pandemic have also accounted for record numbers of couples and families moving from larger, urban and metropolitan areas to more exclusive settings where luxury properties are gaining traction. Spending more time working from home has created a demand for more space and a shift in priorities for homebuyers. The quality of the home and more square footage are amongst a litany of new priorities for homebuyers entering the luxury market for the first time.
What about Hawaii?
Properties have been selling for record prices and at record rates in Hawaii since the start of 2021 in all sectors of the market. This includes the homes in the luxury market category. According to Pacific Business News, Sales of luxury homes on O'ahu saw an increase of approximately 54% in 2021 as compared to the same time last year. The going rates for these properties came in at a median of $2.8 million, which amounts to a 30% increase from the $2.15 million asking prices in 2020.
Because of the strong demand for real estate in Hawaii, inventory has been low, and properties are continuing to sell at a strong rate. This unique economic landscape has made it both a buyer's and seller's market. Homeowners that are looking to sell are likely to sell are likely to do so quickly and at great prices. Likewise, prospective homeowners looking to purchase luxury properties in Hawaii are in the best possible position to do so now. But, for them, time is of the essence. Waiting could mean missing out.
The takeaway?
As with every window of opportunity that opens amidst shifting market landscapes, the opportunities won't be there forever. This may be the opportunity that you've been waiting for to purchase the property of your dreams! Luxury is a way of life and an opportunity-- it doesn't translate necessarily translate to "out-of-reach." The time is now!
Looking to purchase your first luxury home in paradise?
Interesting in expanding your existing real estate portfolio?
Don't delay. Ask us how!
Patrick (R) (GRI) & Takako McMillen (R)
Owners & Principal Brokers
CENTURY 21 Hawaiian Style
Here at CENTURY 21 Hawaiian Style, our 31+ years of experience, professionalism, and knowledge well-equips us to handle the sale or purchase of your property with the utmost care from start to finish.
Your opportunity awaits! Call us today:
(808) 383-6551