Now that 2023 is over and we are getting into 2024 it is time to look at what you can expect to see for luxury homes in Hawai’i as well as the property market overall. 2023 had its ups and downs, with mortgage interest rates increasing and the wildfires that lowered buyer confidence. However, the housing market in Hawai’i has stayed strong and houses have continued to be bought and sold throughout the year. 2024 is set to be an interesting year with lots of opportunities whether you are thinking of buying or selling luxury homes in Hawai’i. In this blog, Marco In Kona will talk about everything you can expect from the housing market in Hawai’i in 2024.
Lower Mortgage Interest Rates
Since 2022, mortgage interest rates have been on the rise and hit their peak in November of 2023. In 2024, you can already see them starting to decline. This trend will likely carry on throughout the year thanks to the anticipated rate cuts. While rates remain higher than previous years’, this trend may create more opportunities for buyers considering luxury homes in Hawai’i. It will be important to adust your expectations as you navigate the current market.
Fewer Luxury Homes in Hawai’i
One thing that will continue to put pressure on the market is the lack of houses available. We recommend watching the inventory levels during 2024 especially if you are selling your luxury home in Hawai’i. This will provide insight into the best time to put your property on the market to get the best price. At the end of last year, there was an increase in houses available and they were not on the market very long.
Pricing Your Home
When selling your luxury home in Hawai’i one of the main concerns is making sure you can get the best possible price. However, it is important to price your home correctly. In 2023, 27% of the homes that were sold had a price reduction and took 76 days longer to sell than previous averages. Marco In Kona can help advise you on the best valuation for your home to make sure you not only get the best price but that you are also not waiting around to make the sale.
Now, let’s look at individual areas in Hawai’i and their housing markets in 2023. Hopefully, this will provide you with some insight into what to expect for 2024.
Kaua’i
Kauai saw a decrease in properties sold in 2023 compared to 2022. Properties were also on the market much longer compared to 2022. However, the median sold price remained the same for homes and condominiums, and land prices increased by 28%. This is likely to continue to rise in 2024.
O’ahu
O’ahu also saw a decrease in properties sold in 2023 and properties stayed on the market for an average of 65% longer than they did in 2022. There was a significant decrease in the amount of properties available on the market in 2022 which likely contributed to the drop in sales. The median sold price of homes stayed fairly consistent from 2022 to 2023 with only a small decrease for residential properties.
Maui
Maui saw a significant increase in the median sold price of residential, condominium, and land properties. While the length of time residential and condominium properties remained on the market was longer, it was a much smaller increase compared to other areas in Hawai’i. The average decrease in sales in Maui was about 32%, but there was also a 21% decrease in the amount of properties on the market.
Hawai’i Island
Much like the other areas, Hawai’i Island also experienced a significant decrease in the amount of sales but there was also a 19% decrease in the amount of properties for sale so this would have had a large impact on the sales in 2023.
While 2023 was not the best year for the housing market in Hawai’i and luxury homes in Hawai’i, 2024 is set up to be much better for buyers and sellers. There will be lots of advantages for sellers such as the lack of properties available and increasing house prices. Buyers will also benefit from the decreasing mortgage rates. If you are looking to sell your luxury home in Hawai’i in 2024 and want to make the most of the market, Marco In Kona can help.
Contact Marco by clicking here to begin your exploration of Hawai’i Island real estate.
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