Prices Climb, Inventory Dwindles, and Sellers Come Out On Top
Our Quarter 4 2021 State of Hawai’i real estate market report, which was just released by Hawai’i Life, reveals an ever-shrinking inventory and climbing prices statewide. Consequently, the hot seller’s market that defined Q3 of 2021 remained as strong as ever on Hawai’i Island, Oahu, Kauai, and Maui throughout Q4.
Low Inventory Fortifies the Strong Seller’s Market
A look back on Hawaii’s real estate market over the past 12 months indicates that each month has seen fewer and fewer active listings. A comparison of Q4 2021 to Q4 2020 proves that the number of homes available for sale on Oahu and Big Island has contracted as inventory is absorbed at both record rates and record prices. Current active residential listings on Kauai and Maui have plummeted as well.
Q4 also offered insight on the number of days that the average property is on the market before it sells (DOM). Although some of the previous 12 months have been outliers, the overall trendline shows a downward shift in the average DOM in Q4 of 2021. This decrease is further proof that the sellers market is not cooling down anytime soon.
Amidst Inventory Shortages, Upward Trend in Prices Continues
According to the Q4 Real Estate Market Report, the real estate market inventory continues to drop rapidly on Maui, Kauai, Oahu, and Hawai’i Island. Average sales prices are not only holding in the face of a dwindling inventory, but continuing their steady increase.
For 2021’s fourth quarter, the average sales price of single family homes on Hawai’i Island experienced an increase of 10% over the average sales price during Q4 2020, while the average sales price on Maui was up 5% over the average sales price in 2020. Although Kauai saw an even greater rise of 17% over the average sales price during Q4 2020, Oahu would not be outdone with its sharp increase of 19% over the average sales price of single family homes.
The Drop in Current Months of Inventory: What it Means for Sellers and Buyers
As the real estate market inventory across the chain of islands decreases further, sellers continue to benefit from a lucrative market. On the other hand, current months of inventory indicate that the real estate market is struggling to meet buyer demand.
Current months of inventory available on Maui and Kauai dropped from 3 months in Q4 2020, with Kauai coming in at 2.1 months and Maui seeing 1.6 months in Q4 2021.
Current inventory on Hawai’i Island, which was 2.2 months in Q4 2020, has dipped down to 1.5 months in Q4 2021. And Oahu’s current months of inventory available, which was only 1.5 months in Q4 2020, has continued to decrease to 1.1 months in Q4 2021.
Although the rush of buyers paired with steadily declining inventory can prove tricky to navigate at times, the real estate professionals at Hawai’i Life possess the skills, expertise, and knowledge that buyers need to stay competitive.
Watch the Market Report Videos above now, and contact us with any specific questions at hello@hawaiilife.com or comment below.
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