After 2022 set many Real Estate records for Hawaii in terms of median sales price and sales volume, the expectations heading into 2023 were that the market would likely cool. Driven by rising interest rates, remote workers returning to the office, and general inflation across the board, moving to Hawaii or simply upgrading and financing a new property became more cost prohibitive. With that said, the market did remain active, despite the lower demand resulting in fewer closings.
While we wait for end-of-year statistics, we can highlight a few months that illustrate the market shift. January 2023 showed the largest percentage shift with 150 single-family home closings, compared to 2022’s 326 closings, a –54% shift. Condominiums saw a –50% reduction in closings in that period. As we shift to looking toward the end of 2023, we see stabilization versus the previous year. October 2023 had 213 single-family home closings versus 222 during the same period in 2022, a -4% difference.
The third quarter concluded with average U.S. mortgage rates surpassing 7%, a level not seen in over two decades, according to Fran Villarmia-Kahawai, president of the Honolulu Board of REALTORS®. While rising interest rates have posed some hurdles, buyer and seller enthusiasm remains robust, with offers frequently exceeding the initial asking price.
In the single-family home market, approximately 9% of sales closed at the full asking price, while 38% sold for a premium. Similarly, 22% of condo sales achieved the full asking price, and 20% closed above the initial asking price.
Navigating the real estate market effectively requires the expertise of a trusted and knowledgeable REALTOR® by your side. While the financing landscape has become more complex, numerous opportunities remain for both homeowners and first-time homebuyers, according to Fran Villarmia-Kahawai
Sachi Hawaii would like to thank our ‘Ohana for their continued support. As we wrap up another successful year, we did so with the help of our amazing Sachi Hawaii sales team. We’d like to highlight a few of our landmark listing sales this year, including a $10.5M sale along Tantalus Drive, $5.3M beachfront home designed by famed architect Jeff Long, a $3.9M sale of an island-modern home in Kahala, a $2.6M home in Hawaii Loa Ridge with stunning Ocean views, and many more.
It’s our pleasure to also list notable properties such as 1133 Ikena Circle, named “Hi’ilani”, the former home of famed television producer Al Masini and one of the most opulent properties in all of Hawaii, listed at $27 million, as well as 1103 Kaimoku Place, “Villa d’Elegance”, a Santa Barbara, coastal Mediterranean inspired beachfront luxury home designed by Jeff Long, listed at $15.8 million.
At the time of writing, Sachi Hawaii listed and sold over 47 properties this year, and represented buyers for another 57 property sales. We currently also have 11 properties in escrow, and on track to close over 115 properties this year. We’re fortunate to work with so many wonderful buyers and sellers in helping you achieve your real estate goals.
Please join us in welcoming Rina Bland, Lori Chang, and Masaki Coggins to the Sachi Hawaii sales team. In addition, please welcome Linda Byrd, Mika Uema, and Keiko Ho to the property management team.
Mahalo nui loa from all of us at Sachi Hawaii to our precious clients, friends, and family members for being a part of our successful 2023. As we look to the future in 2024, we wish for our extended ‘Ohana good health and fortune, as we continue to serve with enthusiasm, sincerity, privacy, discretion and professionalism. Here’s to another successful year with our most valued patrons and newest members to our Sachi Hawaii family.
In lieu of gifts, Sachi Hawaii has donated to the Hawaii Community Foundation’s “Maui Strong” initiative, providing financial resources to support the immediate and long-term recovery needs for the people and places affected by the devastating Maui wildfires. Our thoughts and prayers remain with Maui and those affected.
From Sachi Braden and the entire Sachi Hawaii Team,
Mahalo for your continued support and Happy Holidays!
