Tag Archives: Hawaii

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.

Lahainaluna Relocates

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Due to environmental risks from recent wildfires, Lahainaluna Principal Richard Carosso intends to temporarily transfer pupils to Kulanihako’i High School in Kihei on September 14. Carosso acknowledged the difficulties of the situation and underlined the importance of delivering in-person instruction and bringing pupils back on track in his remarks to parents, instructors, and students. Aiming to reopen West Maui schools after fall break while investigating other educational choices, resolving communication issues with parents, and considering potential temporary locations, DOE officials addressed concerns during community gatherings.

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

Maui Moving Forward

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We deeply appreciate your incredible thoughtfulness and generous support in our efforts to rebuild Maui Island’s properties and spirit. The overwhelming care you’ve shown, from various places within the County, has been truly inspiring and comforting.

The donations that have come in from all corners of the County speak volumes about the unity and compassion that bind us together. We want to express our heartfelt gratitude to each and every one of you.

While the process of rebuilding West Maui and revitalizing its businesses may take time, we want to reassure you that Maui’s indomitable spirit shines brighter than ever. We proudly announce that Maui is ready and eager for business, with doors wide open.

We urge you to disregard any negativity that might arise from those who lack understanding or expertise. Instead, let us stand united, confident that the magic of Maui prevails over all challenges.

A captivating video, skillfully crafted by Clint, awaits you—a visual journey that rekindles the enchanting essence of Maui. Allow its imagery to transport you to the beauty, charm, and unique experiences that await you on this extraordinary island.

https://youtu.be/AOP1YEOeHHg

With your continued support and unwavering belief, together, we will witness Maui’s triumphant resurgence. It will once again shine as a symbol of resilience, beauty, and endless possibilities.

With Warm Aloha

Bob, Donna and Clint Hansen of the Hansen Ohana

Maui Luxury Real Estate LLC

Maui Grieving

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