Category Archives: Economy

October Statistics

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Maui

Significant changes were observed in the property categories of the Maui real estate market. There was a notable downturn in home sales, with 48 units sold—a 39.2% reduction from 2022. The median price increased by 18% to $1,269,025 notwithstanding this decline. Nevertheless, the dollar volume dropped dramatically to $79,995,449, a 44.8% decrease. There was a decrease in condo sales as well, with 61 units sold, a 31.5% decrease from the prior year. Condo prices moderately increased by 4.4% to $835,000 on average, but dollar volume fell by 8.4% to $72,375,687. On the other hand, land sales defied the trend, registering a 12.5% rise in units sold over the course of nine transactions, despite a 30% decrease in the median price to $840,000. Land saw a 12.3% decline in dollar volume as well, coming in at $9,120,000.

The real estate market on Maui in October 2023 is depicted in a variety of ways by these numbers. The median price of homes increased dramatically despite the significant fall in sales volume, suggesting a possible shift in buyer preferences or availability of inventory. Condo sales showed a minor increase in median price but matched the overall trend of lower sales volume. Nonetheless, despite a significant decline in the median price, the land segment showed growth in units sold, suggesting possible changes in buyer interest and demand in Maui’s land market.

Oahu

October exhibited stability in the O’ahu housing market despite a downturn brought on by seasonal factors and rising mortgage rates. Comparing this year to last, sales volume for both single-family homes and condominiums declined moderately, but median prices varied: single-family homes saw a 4.8% increase to $1,100,000, while condos had a 1.0% fall to $515,000.

Sales of single-family homes decreased by 8.2% from the previous month, while sales of condos rose by 6.1%. Sales of both types of housing saw a notable 29% drop on a yearly basis, with median prices for homes declining by 5.1% and for condos by 0.6%. There seems to be a change in the dynamics of the market as fewer homes closed at or over asking prices. In spite of this, real estate still moving quickly; single-family homes and condos typically went off the market in less than 30 days. In addition, the amount of active inventory increased, suggesting an increasing supply, but the two housing markets had different quantities of new listings.

Kauai

The Kauai real estate market in October 2023 showed a variety of data for various kinds of properties. The median sales prices for land, single-family homes, and condos varied from September 2023 to that month. With 128 active listings, 40 new listings in 2023 compared to 39 in 2022, and 26 sold listings in 2023 vs 30 in 2022, single-family houses had a median sales price of $982,500. With 82 active listings, 23 new listings in 2023 compared to 34 in 2022, and 19 sold listings in 2023 vs 39 in 2022, condominiums had a median sales price of $896,000. The median sales price of land properties in 2023 was $1,070,000. There were 108 active listings, 22 new listings in 2023 as opposed to 14 in 2022, and 10 sold listings in 2023 as opposed to 6 in 2022.

The data showed a variety of trends: single-family homes showed a minor decline in median price from September, while land and condominiums both showed price swings and differing degrees of activity with regard to new and sold listings. The length of time that each type of property spent on the market varied considerably; land, for example, spent much longer than single-family homes and condominiums. This suggests that the island’s demand and market dynamics for these property types are different.

Big Island

The Big Island real estate market showed clear patterns in October 2023 for all kinds of properties. The median sales prices of land, condominiums, and single-family homes differed from September 2023. With 603 current listings, 233 new listings in 2023 compared to 228 in 2022, and 172 sold listings in 2023 vs 186 in 2022, single-family houses had a median sales price of $552,500. With 108 current listings, 57 new listings in 2023 compared to 56 in 2022, and 46 sold listings in 2023 vs 40 in 2022, condominiums had a median sales price of $528,750. The data for land properties indicated that there were 1084 active listings, a median sales price of $45,000, 249 new listings in 2023 as opposed to 22 in 2022, and 147 sold listings in 2023 as opposed to 190 in 2022.

These figures showed a variety of changes: land prices fell significantly, but single-family homes and condos saw somewhat constant median prices as compared to the prior month. All property classifications had a drastically different number of active listings, with land having a significantly larger volume of new and active listings than single-family homes and condos. Furthermore, there were differences in the days on market for each of these categories, with single-family homes and condominiums showing comparatively shorter times on the market than land, which was on the market for noticeably longer. The Big Island’s October 2023 market dynamics and demand for each form of property are indicated by this data.

September 2023 stats

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The major Hawaiian islands’ real estate markets each have unique traits. On Oahu, condos average $624,700 on the list, while mansions average $1.4 million. Homes normally sell for 98.26% of their asking price, while condominiums typically sell for 98.18%. A robust market is indicated by the average price per square foot of $647.33 for houses and slightly higher $670.07 for condos. On Oahu, homes go quickly; they typically take 19 days to sell, whereas condos take slightly longer—23 days.

With homes on Maui at $1.8 million and condos at $1.1 million, the island has higher average costs. For houses, sellers typically get 94.83% of their market price, and for condos, a healthy 98.10%. Homes cost $843.75 per square foot and condominiums $1,122.22, which is a pretty high price per square foot. On the other hand, homes and condos on Maui typically remain on the market for 105 and 104 days, respectively.

With average home prices of $1.7 million and condominiums at $819 thousand, Kauai offers a more moderate market. Homes here sell for 93.10% of their advertised price, while condominiums sell for 96.64%. For residences, the price per square foot is $976, while for condominiums it is $916. Homes in Kauai sell at a somewhat faster rate than condominiums, with an average of 58 days for a home and 36 days for a condo.

On the Big Island, where average house costs are $789,000 for homes and $912,000 for condominiums, there are more reasonably priced possibilities. Here, properties usually sell for close to market price; residences sell for 96.84% and condominiums for a robust 98.95%. Notably, condos are more reasonably priced at $708.13 per square foot, whereas residences are substantially more expensive at $2,919.61. For homes, the average period on the market is 61 days, while for condominiums, it is 36 days. These figures demonstrate how Hawaii’s islands have different real estate markets that suit different price points and tastes.

Thank you to our friends at Title Guaranty for providing this information.

August Statistics

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Oahu
According to information provided by the Honolulu Board of REALTORS®, the O’ahu real estate market showed mixed tendencies in August 2023. Closed sales for single-family houses decreased significantly year over year (down 19.7%) and for condos (down 16.9%). While condo sales remained steady, single-family house sales saw a noticeable 12.5% increase over the previous month. Single-family homes witnessed a minor year-over-year decline in median sales prices, falling 1.4% to $1,110,000, but condos saw a 3.3% increase to $515,000 instead. Positive trends are developing despite obstacles like increased interest rates, particularly in the active inventory and a minor increase in single-family home buying activity month over month.

Maui
Higher mortgage rates, increasing sales prices, and a housing shortage have all had an impact on the summer homebuying season. Since May, mortgage rates have been above 6.5%; in August, they reached their highest level in two decades. As a result, existing-home sales have decreased by 2.2% from month to month and by 16.6% from the same period last year, according to the National Association of REALTORS® (NAR).

Condominiums (31.4%) and single-family houses (49.1%) saw large drops in new listings. For single-family homes, pending sales grew somewhat (1.6%), but for condos, they significantly decreased (37.1%). Single-family house inventory fell by 31.5%, while condominium inventory fell by 12.1%.

Due to the insufficient supply, property prices remained high despite reduced sales. A 1.9% increase from the prior year, NAR reported a national median existing-home price of $406,700. The decrease in the number of available homes—14.6%—increased competition and price inflation. Closed sales decreased by 16.3%, the median sales price increased by 1.7%, and there were 18.2% fewer properties for sale.

Kauai
When compared to the same month in 2022, Kauai’s real estate market experienced a significant increase in median sale prices in August 2023. The price of a home increased by an astonishing 77% to $1,725,000, while the price of a condo increased even more dramatically by 89% to $1,012,500.

However, sales activity on Kauai decreased despite the price growth. Comparing August 2018 to August 2022, home sales were down significantly (53%) and condo sales (-45%).

In August 2023, Kauai likewise had a rise in the median days on the market. In comparison to the prior year, homes took 88% longer to sell, with a median days on market of 15, and condos had an 86% rise, with a median days on market of 13.

Big Island
The Big Island’s real estate market showed higher median sale prices in August 2023 compared to the corresponding month in 2022. In comparison to the prior year, home prices increased by 3%, reaching $497,000, while condo prices increased by 3%, reaching $612,500.

Sales activity on the Big Island decreased despite the price increase. Comparing August 2022 to August 2023, there was a noticeable -10% decline in home sales and a -14% decline in condo sales.

In August 2023 on the Big Island, the median days on the market increased. Compared to the prior year, homes took 32% longer to sell, with a median days on market of 29, while condos had an 80% rise in market time, with a median days on market of 18.

Taxpayers Affected by Wildfires

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The following information is per Julie Bratton. She is a 1031 Exchange Specialist with Old Republic Exchange Company.

The IRS has issued Tax Relief Notice HI-2023-05 which permits the extension of some tax-related deadlines.

Certain Taxpayers affected by wildfires in parts of Hawaii may be eligible for extensions related to their 45-day and 180-day 1031 exchange deadlines.

Under these Notices, taxpayers affected by wildfires in the counties of Maui and Hawaii may qualify for extensions of certain tax deadlines until February 15, 2024.

Depending upon the circumstances, taxpayers conducting a tax deferred 1031 exchange may have two different options for extension of their deadlines:

  1. Affected Taxpayers ONLY (Section 6):

*an “affected taxpayer” – i.e. lives in the federally declared disaster area or has a principal place of business is in the disaster area;

* 45-day and 180-day deadlines that fall on or after the disaster date may be extended until February 15, 2024

OR

  1. Affected Taxpayers & Other Taxpayers (Section 17):

* IF the relinquished property was transferred on or before the applicable disaster date; then 45-day and 180-day deadlines may be extended 120 days or until February 15, 2024, whichever is later;

*This provision applies to “affected taxpayers” or those who are NOT an “affected taxpayer” but have difficulty meeting the 45-day identification deadline and the 180-day exchange period deadline due to the federally declared disaster. See Revenue Procedure 2018-58, Section 17.

See Revenue Procedure 2018-58, Sections 6 and 17 and check for updates to the scope of the disaster area and the Notices:

https://www.irs.gov/newsroom/tax-relief-in-disaster-situations

July Stats

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Significant changes have happened in different property categories in the Maui real estate sector compared to the previous year. The single-family home market had 451 transactions, a significant fall of 32.2% from the previous year. The median sales price for these properties was $1,150,000, representing a 2.1% decrease. The entire sales value was likewise reduced by 32.2%, reaching $821,757,280. Similarly, the condominium market witnessed a 45.6% decrease in sales, with a total of 586 units sold. However, median sales prices increased 10.5% to $840,000, indicating a favorable trend. Despite this, the overall value of condominium sales fell 42.1% to $672,600,274. There were 100 sales in the unoccupied land sector, with prices ranging from $2.2 million to $860.0 thousand. The median sales price for empty land was $725,500, a 6.6% decline, while the total sales value was $129,807,993, a 29.7% decrease. These figures show a dynamic and changing real estate market in Maui, with changes in sales volumes and median sales prices across single-family homes, condominiums, and unoccupied land.

The Hawaii real estate market has undergone significant changes in many property sectors. The number of single-family house sales has dropped by 32.3%, reaching 1,137 purchases. The median sales price of these residences fell 0.2% to $499,000, while the total sales value fell 35.6% to $919,097,796. Similarly, the number of sales in the condominium sector fell by 32.4% to 386. The median sales price, which reached $589,500, did, however, rise by 2.5%. Despite this, the total value of condominium sales fell by 37.5% to $365,976,353. The unoccupied land sector saw a 35.2% fall in sales, totaling 1,156 transactions, and a 14.6% decrease in median sales price, now standing at $41,000. The overall sales value of empty land has likewise decreased by 39.2% to $213,524,524. These numbers point to a difficult real estate market in Hawaii, with lower sales activity and different variations in median sales prices among single-family homes, condominiums, and unoccupied land.

Oahu has seen significant shifts as well. There were 1,654 sales in the single-family house segment, a considerable decline of 28.6% from the previous year. The median sales price for these residences was $1,030,000, a 7.6% decrease from last year, and the total sales value was $2,123,115,419, a 35.4% decrease from the previous year. The condominium market reported 2,846 transactions, representing a significant 33.2% fall in sales. The median sales price for condos was $500,000, a 2.6% decrease from the previous year, while the total sales value was $1,743,734,508, a 33.2% decrease from the previous year. There were 44 sales in the unoccupied land sector, representing a significant 40.5% reduction from the previous year. The median sales price for empty land was $747,500, a 4.5% decrease, with a total sales value of $75,208,236. These figures show a changing real estate landscape on Oahu, with lower sales volumes and variations in median sales prices for single-family homes, condominiums, and unoccupied land.

In the Kauai market there were 170 sales in the single-family house category, representing a 47.7% decline from the previous year. The median sales price for these residences was $1,100,000, representing an 8.3% decrease, while the overall sales value was $267,112,809, representing a dramatic 60.5% decrease from the previous year. The condominium market saw 186 sales, representing a 33.8% reduction in the number of sales. The median sales price for condos was $697,000, a 3.9% decline from the previous year, while the total sales value was $170,231,628—a 32.0% decrease from the previous year. There were 57 sales in the unoccupied land category, a 36.7% decline from the previous year. Interestingly, the median sales price for unoccupied property climbed by 28.6% to $900,000, but the total sales value decreased by 37.7% to $74,786,200 from the previous year. These data show a changing real estate landscape in Kauai, with lower sales activity and different changes in median sales prices among single-family homes, condominiums, and unoccupied land.