If you would have asked us that question back in March of 2020, we would have predicted that the market was heading for a deep decline. Stay-at-home orders were widespread and a large percentage of businesses were shut down. Understandably, we were concerned. Very concerned.
Certainly, the pandemic has affected every sector of the economy, but the residential real estate market has remained surprisingly resilient. In fact, it has been more than resilient — it’s been robust. Not only does the real estate market continue to be a mainstay of the economy, this year’s growth is unprecedented, shattering expectations.
The Future of the Market
So, will the growth and pace of this year continue? According to Forbes, the market will increase due to three factors:
- Scarcity: There is a shortage of 6.8 million housing units.
- Utility: The home is now the center of the remote workers’ world by being both the office and gym.
- Demand: Millennials are America’s largest generation, in their prime home-buying years.
Demand Remains High in Hawaii
We think that is a pretty good assessment. Particularly when it comes to demand. Hawaii is a world-class destination. Our quality of life is high and so is the demand to live here. One strong indication of demand is what we are seeing in the high-end, luxury market. There have been numerous sales above the $20 million mark, and two above $40 million. Records are being broken in both unit prices and aggregate volume. Of course, it’s not just high-profile tech entrepreneurs and celebrities who want to live here. Hawaii has allure for everyone, and perhaps now more than ever due to the pandemic.
Granted, there has been some slight contraction in the market, primarily because of low inventory, but market activity remains high. So, where is the market headed? We can’t say for sure, but we think it’s unlikely that the Hawaii real estate market has run its course.
⇒ Click on this link for our Hawaii Luxury Market Report.
Cherie Tsukamoto, R, ABR, CRB, CRS, GRI, SRES
(808) 791-2216, (808) 227-2216