Mauna Kea Resort February Market Update: Sales and Trends in Hawai‘i’s Upscale Real Estate Market

Aloha,

The Mauna Kea team at Hawai’i Life Real Estate Brokers is pleased to announce the release of our 2022 Q1-Q4 Hawai’i Luxury Market Report.

The report states that in 2022, statewide, high-end sales (over $3M) eclipsed every year in the past decade in both number of transactions and total dollar value, with the exception of 2021. From the summer of 2020 to the summer of 2022, we saw a run on luxury real estate that broke every historical record that can be tracked in the market, including days on market, median price, and absorption rate. In the third quarter of 2022, that run stopped somewhat abruptly. At the end of 2022, we saw Hawai’i emerging from the greatest run in Hawai‘i’s history, with a -22% decrease in the number of transactions and a -23% decrease in total dollar value as compared to 2021.

It is astonishing that over the past decade, high-end sales volume in Hawai’i grew 416.14%, from $720.53 million in 2012 to $3.72 billion by the end of 2022. Looking back on the past 5 years, high-end sales volume rose 54.43% from $2.41 billion in 2017.

Importantly, the report also states Hawai‘i Life continues to be the statewide market leader in sales $3M+, representing 147 of the 1,304 sides in 2022, making our team the leading brokerage statewide in high-end listings and sales, with 11.3% of the market share of all sales above $3M.

Furthermore, our team was a leader in the highest end of the market in 2022, representing 18 of 126 total sides, or 14.3% of business in the $10M+ market segment. This is a hyper-competitive market driven by timeless relationships and an exceptional standard of service. Securing market share in the market’s top tier is only accomplished with sustained relationships of trust and fidelity, remarkable leadership, service, and insight. Our team demonstrates a capacity to handle the market’s (new) volume at scale, and without compromise.

The end of 2022 saw real property values continuing to climb in every segment of the luxury market. Overall, the luxury real estate market was influenced by more than just inventory, interest rates, and absorption rate in 2022. It is and will continue to be driven by the less tangible qualities that our clients value above all — excellence, rarity, value, and other drivers that are difficult to calculate objectively.

As 2023 unfolds, we have to look less intensely on activity from mid-2020 to mid-2022, and take a bigger picture view, examining data from the past decade for an accurate understanding of where Hawai‘i’s luxury market is and where it’s headed. Our capacity, experience with agency in all its forms (buyer, seller, and dual agency), and ability to see this big picture continues enabling Hawai’i Life to improve our market share in this coveted space of luxury real estate in the state of Hawai‘i.

The Big Island Luxury Market Overview can be found on page 34 of the report. The report states, for 2022, Hawai’i Island’s average sales price per sq. ft. was $1,912, while the median sold price of luxury single-family homes reached $4 million. Although 2022 saw a downward trend in sold listings throughout the state of Hawai’i, there were 157 luxury transactions over $3M on Hawai’i Island, which is -24.15% less than 2021. Totaling $927.4 million, the dollar value of 2022 trades is more than double the $455.5 million seen in 2017, before the pandemic.

Hawai‘i Island luxury homes stayed on the market for only 69.2 days in 2022. Down -52.2% from 144.8 days in 2021, the island’s average days on market (DOM) was significantly less time than other islands. And Hawai’i Island home buyers paid an average of 97.8% of the listing price for their luxury property in 2022.

Some of Hawai’i Life’s highest residential trades have occurred on Hawai‘i Island, including 37 total sales of listings above the $3 million mark in 2022, for a total of $221.74 million. In the ultra-luxury market segment, Hawai‘i Life represented 6% of the trades at or above $10 million, totaling $33.75 million by dollar volume in 2022.

As we look ahead to Spring 2023, we don’t expect any slow down between now and April. We do expect the private club communities that began creating inventory in 2022 to continue building more vertical product to meet demand.

And we will continue to see ample new construction in resort areas, which should hit the market in 2023. We are seeing more seller buydowns and creative financing with buyers who want to move into the right home, right now, and are willing to refinance down the road. We expect this to continue.

Although demand for Hawai‘i Island real estate shows very little signs of letting up, we’re starting 2023 with a healthier, more balanced market. In response, even more new construction can be expected as the year progresses.
You can access the full 2022 Q1-Q4 Hawai’i Luxury Market Report by (Clicking Here).

Below please find the Mauna Kea Resort’s February Real Estate Market Update highlighting last month’s (January) sales, resort offerings and local events. I hope you find this information interesting and helpful.

January Sales

There were 2 sales within Mauna Kea Resort in January of 2023.

Most notably, Hawai’i Life Mauna Kea team represented the Seller of Villa #39 at Mauna Kea Resort which sold for $5.68M. By way of unparalleled marketing, diligence and skilled negotiating, our team participated in the second highest priced sale in the history of the community. Average sales prices in Mauna Kea Resort have increased by 28% over the past year.

The other February sale was a 1/2 acre vacant lot in The Uplands community of Hapuna Estates which sold at the full list price of $1.495M.

(Click Here) to view the detailed list of January sales within Mauna Kea Resort.

New on the Market

A single-family home in the Fairways North was recently listed for $5.695M. Fairways North #32 sits high, overlooking the community and out towards panoramic views of the Pacific Ocean, Maui and Kohala Mountain with no neighbors on either side of the property. The 4 bedroom 4.5 bath 3,400 SF home has an expansive covered lanai which leads to an infinity pool and jacuzzi. The adjacent vacant lot #31 is also for sale, listed at $2.3M and the Seller would prefer it be purchased together with the house.

(Click Here) to view the property details for the Fairways North #32.

For a Complete List of Condominiums and Residential Properties Currently Available at the Mauna Kea Resort (Click Here).

For a Complete List of Vacant Land Properties Currently Available at the Mauna Kea Resort (Click Here).

Local Events

AN EVENING WITH MAYOR MITCH ROTH FOR HOMEOWNERS & CLUB MEMBERS: 

Mauna Kea Resort invites you to join us on Thursday, March 9, 2023 from 5:00 pm to 7:00 pm at Mauna Kea Beach Hotel’s Kauna’oa Ballroom for an evening presentation and Q & A session with Mayor Mitch Roth about creating a thriving Hawaii Island. You will, also, learn about the Koi Pond initiatives in our community and how you can get involved. Please RSVP and submit questions for Mayor Roth to Gina Marinucci at gmarinucci@maunakearesort.net by March 3, 2023. Space is limited.

Mahalo,
Jake Chnacer