Q4 2022 Hawaiʻi Market Report Reveals That Sellers Still Hold Asking Power
Months of Inventory Doubles, Pending Properties Dip, and Sellers Maintain Their Grip on the Market
Just released by Hawai’i Life, our Quarter 4 2022 Hawai’i Real Estate Market Report reveals a rise in inventory on Hawai’i Island, Kauai, Maui, and Oahu. Although an increase in days on market and months of inventory indicated a more balanced market, sellers still held asking power as 2022 came to a close.
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Conditions Still Favor Sellers Despite Rise in Days on Market and Months of Inventory
A look back at Hawaii’s real estate market over the past 12 months offers insight on days on market (DOM), the number of days that the average property is on the market before it sells. From Kauai’s subtle increase of 1.5% to Oahu’s change of 5.8%, the overall trendline shows a rise in the average DOM on Hawaii’s four most populated islands. If this pattern continues, buyers may stand to gain more negotiation power in 2023.
Quarter 4 2022 also revealed that months of inventory has more than doubled across the state of Hawai’i over the past 12 months. Current months of inventory available on Hawai’i Island and Maui climbed up from 1.56 months in Q4 2021, with Hawai’i coming in at 3.76 months and Maui experiencing 3.7 months in Q4 2022. On Kauai, available inventory rose to 5.1 months. And Oahu’s months of inventory saw the most significant change, with an increase of 200% to 3.2 months in Q4 2022. As striking as this massive, statewide increase in months of inventory is, the average still remains below 4 months and bears the marks of a seller’s market.
Q4 Characterized by Slow Growth in Supply as Pending Sales Drop
According to the Quarter 4 2022 Real Estate Market Report, inventory is growing overall. Albeit slowly, this increase in supply is a welcome respite from having little inventory to meet surging demand. On Oahu, the number of single-family homes available for sale has risen to 650 and the Big Island of Hawai’i is not far behind, with 648 homes for sale at the time of publishing. Although not as dramatic, Kauai and Maui also experienced a swell in active residential listings in Q4 2022.
A strong economic indicator for housing market growth, pending home sales took a minimal dip at the end of 2021 and the downward trend continued throughout 2022. In quarter 4 of 2022, pending property sales dropped across the chain of islands, with Kauai seeing the biggest decrease of 55.5% less homes under contract than the same period last year. Interestingly, Kauai is also the only island that saw no change in single-family homes prices from Q4 2021 to Q4 2022.
Despite a massive increase in months of inventory throughout the state, the average remains below 4 months, indicating a market that may drive home prices higher and keep sellers in the driver’s seat. The rise in days on market across the chain of islands, however, may suggest more stability in Hawaii’s market. While navigating a real estate market that continues to evolve can be complex at times, Hawai’i Life’s real estate professionals possess the expertise, knowledge, and skills to help sellers navigate the fluctuations and buyers stay competitive.
Watch the Market Report Videos above now, and contact us with any specific questions at hello@hawaiilife.com or comment below.
About Hawaiʻi Life
Founded in 2008, Hawai‘i Life is a 100% locally owned and operated real estate brokerage and the State of Hawai‘i‘s leading firm in high-end listings and sales. Hawai‘i Life is the exclusive Hawai‘i member of Forbes Global Properties™ and is one of Luxury Portfolio International’s® global network of premier, locally branded real estate companies. Currently made up of 350+ licensed Realtors and Salespeople in each neighborhood across the chain of islands, Hawai’i Life reached $2.4 billion in Hawai‘i property sales in 2022.
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