Hawai‘i Real Estate 2023: Year-End Insights and 2024 Outlook

In this market report we explore Hawai‘i’s 2023 year-to-date market trends and reveal what the most recent data from Q4 2023 tells us about the Hawai‘i real estate market heading into 2024.

In O‘ahu the number of available homes grew in 2023 with median sale price slightly below the all time high we saw in 2022. Hawai‘i Island reached a record level median sale price both for the year and Q4. In Kaua‘i inventory levels remained steady throughout the year, and both sales and pending sales increased in Q3 and Q4. Maui is showing signs of resilience after the August 8th wildfires. Inventory rose in Q4, although it did not reach Q2 levels. Median sale price increased over 2022.

With interest rates lowering, rising home inventory levels, and the strength of median sale prices, there are reasons to be optimistic about the overall Hawai‘i real estate market.

Hawai‘i Island’s Single-family Home Market Set a Record Yearly High in 2023 and a Quarterly Record High in Q4 2023

Despite the 2023 Hawai‘i Island real estate market being down from a sales volume perspective, median sales prices have hit record levels of $510,000 for the year and $532,000 for Q4.

The Big Island’s inventory situation also improved this year. Residential inventory included 682 active listings at the end of 2023, an increase of +5.2% from 648 active listings at the end of 2022. Sales, however, declined by -26%, with 1,940 sales in 2023 down from 2,621 sales in 2022.

With the increase in inventory, the strength of the median sold price and the trend of decreasing interest rates, the outlook for Hawai‘i Island real estate market is optimistic.

In 2023, O‘ahu Homes Saw Prices go Down Compared to 2022. Year End 2023 had Slightly Higher Inventory Than Year End 2022

O‘ahu had fewer homes for sale at the start of 2023 but the number of available homes grew throughout the year. 2023 ended with 656 homes on the market, 6 greater than the end of 2022. 

The total number of sales did decline for the second year in a row. Total sales were 4,543 in 2021, 3,553 in 2022, and 2,730 in 2023. With the increase in inventory and decline in sales, it is not surprising that Days On Market (DOM) began to rise to levels much more aligned with 2017 to 2020.

After setting a record high median sales price in 2022 of $1.1M, there was a slight pull back in 2023 to $1.03M.  This is still only the second year in history with the O‘ahu median sales price being over $1M.

Currently standing at $1.03M, O‘ahu’s median sold price has grown +58.46% from $650,000 in 2013. The long-term data of the past 10 years gives a more accurate picture of the state of O‘ahu’s residential real estate market, revealing a substantial upward trajectory and illustrating an enduring and robust appreciation trend.

Maui’s Housing Market Shows Resilience Following Challenges Presented by Recent Wildfire

Due to the events of August 8th, parts of Maui have been profoundly changed. We acknowledge the impact on our Maui community, and emphasize our ongoing support to every person affected by the wildfires.

After the fires, there was an immediate drop in inventory. This trend has started to reverse in Q4 2023, however inventory levels have not reached the levels of Q2 2023. Q2 2023 ended with 250 active single-family home listings and Q4 ended with 233. This is definitely an improvement over the 211 at the end of Q3.

The predicted price crash after the Maui wildfires did not happen and median sales prices are up from 2022. For 2023, the median sold price of single-family homes on Maui was $1.2M, an increase of +8.6% from the median sold price of $1.105M for 2022. The median price was consistent throughout the year, whereas 2022 saw significant fluctuations.

There were 983 total sales in 2022 and 728 total sales in 2023, a -28.8% decline. Pending sales in Q4 were up from Q3, 187 from 153, which is hopefully an early sign of increased sales in 2024.

2023 was Mixed on Kaua‘i, Total Sales Were Down While Selling Prices Remained Relatively Strong

Despite the 2023 Kaua‘i real estate market being generally down, property values remain strong. And due to the relatively small number of transactions in any given year, one should not read too much into small percentage changes.

Total number of sales for 2023 were 285, down -39.7% from 473 in 2022. 2023 ended with the number of active listings at 120, down only 5 listings compared to the end of 2022. This appears to be an indication of strength as at the end of Q3 2023 there were 130 active listings, and the primary reason for the slight decrease in listings for Q4 2023 was the increase in sales during that quarter.

2023 median sold price (the middle value of all the sold prices) of single-family homes on Kaua‘i of $1.15M is down -3.2% from the median sold price of $1.188M during 2022. Kaua‘i’s median home price in 2013 was $523,000. In 2023, the median home price was $1,150,000 or an increase of 119.8%.

There are signs to be cautiously optimistic for the Kaua‘i real estate market in 2024. Interest rates appear to be declining, inventory levels are maintaining, Q3 2023 and Q4 2023 sales and pending sales are both up, and median sales prices are holding.

If you’re feeling a bit lost in the sea of numbers, no worries! Hawai‘i Life’s agents possess the insight, knowledge, and know-how to help you navigate the variables of a shifting market. Need insider details on specific areas across the islands? We’ll connect you with a local expert to meet your individual needs. Don’t hesitate to reach out at any time – we’re here to help. 

Contact us at hello@hawaiilife.com or (800) 370-3848 through text or call to receive a customized Market Report, or to find a Hawaii Life agent specializing in the areas and neighborhoods you are interested in.