Elite Pacific's Hawaii Luxury Market Review: June 2020

Posted Tuesday, July 21, 2020 by Elite Pacific

Elite Pacific Properties is pleased to present a closer look at the luxury real estate market in Hawaii, showcasing detailed statistical analysis of Kauai, Oahu, Maui and the Big Island of Hawaii for June 2020.

Hawaii’s lockdown continues with Governor Ige announcing that the opening of trans-Pacific travel to Hawaii will be delayed to September 1st, instead of the previously scheduled July 31st date. Ige recognizes that he is weighing up the difficult option of economic recovery, so heavily reliant on tourism, versus the health and safety of Hawaii’s residents, but determined the latter was more important.

This, of course, will continue to have a direct impact on real estate transactions and as the statistics show the number of sales in the luxury market remain lower than typically expected at this time of year.

Realtors are using technology in the form of virtual open houses and tours as well as livestreaming to showcase homes, but in reality a homeowner looking for a property in the luxury market is unlikely to purchase without visiting the property first. That being said, pending sales activity indicates that consumer confidence and demand are increasing.

Although we do not see pending sale activity reflected in the luxury market statistics currently, once the lockdown is lifted many believe that there will be a surge of buying due to the pent-up demand. If we look at other resort communities in the US mainland, that opened up in June, this has certainly been the trend.

Vacation rental properties will probably not see a rebound for a while, however, affluent buyers who can now almost exclusively work from home are still looking for a property that will offer their family long term safe haven. Hawaii’s low counts of Covid-19 and high safety measures will certainly prove to be a draw for many.

We continue to see many families spending more time at home, so features such as move-in ready, larger footprints, open plan layouts, large yards, outdoor living spaces but also privacy spaces such as home offices, fitness or yoga studios are key features on the affluent buyer’s checklist.

For homeowners currently not living in their properties and looking to sell, now is the time to work with your realtor to prepare the home so that its turnkey, as statistics show that these properties are in high demand and fetching close to relatable asking prices. Not only does this assist the local economy, but ensures that safety precautions are easier to implement.

As always, a real estate expert familiar with local trends is the best resource to navigate a specific market.

To view the full report, please click here.