UPDATED | June 1, 2020:
Hawaii Cautiously Reopens to Low- and Medium-Risk Businesses
On May 18, Hawaii’s Governor David Ige signed an 8th supplemental emergency proclamation, unveiling a four-phase plan for reopening Hawaii’s economy, announcing that “medium-risk” businesses and activities would be allowed to resume operations in early June, with social distancing measures in place.
Hawaii has the lowest mortality rate in the country and one of the lowest rates of infection, thus far. For Hawaii visitors, it’s important to know that the proclamation extends the required 14-day quarantine for those arriving in Hawaii until June 30th. You can read more about the state’s four-phase recovery plan here.
Hawaii’s Real Estate Market
Many of our clients have been asking how the coronavirus is affecting Hawaii’s real estate market now and how it may shape it in the months to come. Hawaii Life CEO Matt Beall reports in his recent article Break Glass, Pull Pin on the events of the past few months. With complete transparency, he shared the impacts experienced by our team. Since March, he reports, “we’ve canceled 143 real estate transactions on behalf of clients, for over $139 million in total sales.”
But it hasn’t all been doom and gloom. “For context,” he continued, “we successfully closed $436 million in sales in the same period. That our team was able to keep approximately 70% of our sales volume together is incredible.” Matt points to some early signs that current events may generate even greater demand for Hawaii’s highest-end real estate. Unprecedented turnout for a luxury property auction in the first week of March hinted that demand was still strong despite volatile stock market activity at the time.
While business isn’t exactly ‘as usual’ yet, here at Hawaii Life, we are primed to handle the changing landscape occasioned by Covid-19. We have been showing homes virtually and using technology to streamline the entire home buying process for years, and we’ll continue to serve our clients in this way.
In recent weeks, our agents have been permitted to show homes in person under the “Safer at Home” phase of Hawaii’s reopening, with social distancing measures in place. “We’ve managed to close a remarkable 636 transactions for our clients this year, and we still have 246 pending transactions,” said Matt blog, dated May 28, 2020.
Maui agent Dave Futch recently shared a video interview with Dr. Lawrence Yun entitled “This Too Shall Pass” that also provided some encouraging signs about the future of real estate. Dr. Yun is the chief economist and senior vice president of research for the National Association of REALTORS® and is widely considered a renowned leader in both real estate and economics.
“There will be more people working at home…so we may actually begin to see more people wanting to search for different homes to fit their lifestyle a little better, said Dr. Yun. “The housing market has a huge potential for growth.” You can read Dave’s take on it and watch the interview with Dr. Yun here.