Hawai’i Statewide Real Estate Market Report, Q3 2021: What Low Inventory and Rising Prices Mean for The State’s Housing Market
Just released by Hawai’i Life, our Quarter 3 2021 State of Hawai’i real estate market report indicates that the number of homes available for sale on Hawai’i Island, Oahu, Kauai, and Maui have decreased dramatically when comparing Q3 2020 to Q3 2021. What’s more, the average sales price of homes across the state experienced an impressive increase. Not surprisingly, a hot seller’s market defined Q3 of 2021.
Seller’s Market Gets a Boost from Low Inventory
As we look back on Hawaii’s real estate market over the past year, each month has seen fewer and fewer active listings. When comparing Q3 2021 to Q3 2020, it’s evident that the number of homes available for sale on the Big Island and Maui has plummeted. Oahu and Kauai have also seen a sharp decline in current active residential listings.
Q3 also shed some light on the average number of days on market (DOM), which conveys how many days the average property is on the market before it sells. While some of the previous 12 months have been outliers, the overall trendline shows that the average DOM in Q3 of 2021 is down significantly, a trend that further establishes the strength of the seller’s market.
Volume of Sales Increases Despite Rising Sales Prices
The rate of inventory continues to decline at an accelerated rate on all islands covered in the Q3 Real Estate Market Report. As a result, the average price per square footage has shown a steady increase over the last 12 months.
The combination of low or high properties in the market can affect the average sold price and median sold price, while the average sold price per square foot is a more normalized indicator on the direction of property values. As such, the average sold price per square foot is a figure that we monitor closely at Hawai’i Life.
Not only are residential properties commanding more value per square foot, but the average sales price of single-family homes is showing an increase for the third quarter of 2021. There was a notable price increase on Oahu and Hawai’i Island, while the increase was well over 50% on Maui and Kauai.
On all four islands, this rise in average sales prices has not deterred an increase in the volume of sales since last year. Q3 2021 also reported an increase in pending properties for Maui and Oahu, while on Kauai and Big Island, homes under contract saw a slight drop.
What This Means for Buyers and Sellers
Based on current months of inventory, the real estate market on Hawai’i Island, Maui, Kauai, and Oahu is quickly running out of inventory. Although it’s been over a year since the pandemic triggered a massive Hawai’i housing rush, buyer demand is still far surpassing supply and sellers continue to reap the benefits of a lucrative market.
This combination of low inventory and a steady influx of buyers in Hawai’i can present some unique challenges, but our Hawai’i Life experts have the knowledge and expertise to help buyers stay competitive, giving them the best possible chance to stand out in a crowd of eager house hunters.
Access the rest of the Q3 Hawai’i Market Reports Now
The Real Estate Market Report covers quarter three of 2021, providing a wealth of knowledge from Hawai’i’s most experienced real estate brokers.