In September nearly half of luxury single-family and attached homes were purchased by mainland and international buyers. In the single family market the number of sales were at a 13-month high, days on market dropped to just 23 days, and the median price was just below the 13-month high. The attached home market median price set a new 13-month high and sales volume increased significantly over last month.
SINGLE FAMILY HOMES
There were 27 single-family home sales on Oahu in the month of September, ranging in price from $1.875 million to $7.5 million. Most of the single-family home sales were in the Diamond Head and Kailua regions, with a smaller number of sales in the North Shore, Hawaii Kai, and Metro regions. A little over half of the luxury single-family homes were purchased by local buyers. The number of mainland buyers increased to eleven – nine from California and one each from Texas and Washington. There was only one international buyer in September. The highest sale, at $7.5 million, was a very private home with a personal resort feel on Kahala Avenue.
The number of homes sold in September is up 17% over August, and up 35% over September 2019. This is the highest number of sales in the last 13 months as demand for luxury single-family homes continues to grow.
Listings for single-family homes are down 2% from August, and down 22% from September 2019. Inventory continues to be an issue in the Oahu luxury single-family home market. This limited inventory, especially in the types of homes luxury consumers are now looking for, is creating upward pressure on prices.
The September single-family median price of $2.9 million is up 6% from the August median price of $2.7 million and up 10% over the September 2019 median price of $2.6 million. The September median price is just below the 13-month high median price of $3.0 million from July 2020. With the easing of travel restrictions and an increase in mainland and international buyers this month, it will be interesting to see what happens with median prices in October!
ATTACHED HOMES (CONDOMINIUMS & TOWNHOMES)
There were 30 attached home sales on Oahu in September, ranging in price from $850,000 to $8.8 million. Most of these sales were in the Honolulu Metro and Diamond Head regions with additional sales in the Kailua, Ewaplain, Hawaii Kai, and Kaneohe regions. Similar to the single-family market, a little over half of the activity in the luxury attached home market in September was driven by local buyers. There were also eleven mainland attached home buyers – eight from California and one each from Arizona, Michigan, and North Carolina. The three international buyers were from Japan (2) and New Zealand. The highest attached home sale, at $8.8 million, was a Park Lane condo that features a private pool and Jacuzzi as well as connected 2-car garage. A very similar Park Lane unit was the highest attached home sale last month as well.
The number of attached homes sold in September was up 36% over August, but 41% less than September 2019. Despite continuing a positive trend from the lows in May 2020, sales of attached luxury homes continue to be significantly lower than pre-pandemic levels.
Listings for attached homes are down 2% from August, and down 7% from September 2019. Attached luxury home inventory is not too far off 2019 inventory levels. However, the inventory of units that offer private entrances and full service staff is limited. These types of units are selling faster and owners are getting close to their asking price.
The attached home median price of $1.4 million is up 21% over the August median price of $1.17 million, and up 23% over the September 2019 median price of $1.15 million. This is the highest median price in the past 13 months. Even though sales volume is down, buyers are willing to pay a premium for privacy, more space, and staff services. That shift in preferences and sentiment is increasing the median sales price.
The single family market continues to strengthen as a seller’s market, especially with the premier properties offering the location, finishes, space, and amenities today’s luxury buyers are looking for. There are still some opportunities with older fixer homes in traditionally popular luxury neighborhoods.
The attached home market improved, but generally remains a pretty strong buyer’s market. The premier properties offering private unit access and full-service staff are selling fast and owners are getting close to their asking price. There are still some good opportunities with typical luxury condos in trendy Kakaako and Ala Moana.
With travel restrictions easing, it will be interesting to see if the number of mainland and international buyers continues to increase next month.
You can click HERE to see more detailed information about the Oahu luxury market as well as a summary of high-level statistics for the other U.S. luxury markets tracked by the Institute for Luxury Home Marketing. If you would like more detailed information about another U.S. luxury market listed in the report, please let me know and I’ll be happy to forward the ILHM report for that market.