Hawaii Island Real Estate Market Update January 2021
By Ahmad Mohammadi
Principal Broker, Hawaii Luxury Real Estate
Hawaii is one of the fastest-growing real estate market in the country. The momentum actually started more than 3 years ago due to many factors. No one had any idea about how extreme the world situation would become because of Corona Virus or the catastrophic fires on the west coast and the horrible hurricanes in Florida. All these events staged the high demand for Hawaii property.
Interestingly, the Covid-19 shut down did not hinder people from buying property in Hawaii but rather residential real estate sales picked up tremendously.
Most Hawaii Buyers are coming from the west coast. Some giants of silicon valley have chosen to make Hawaii their home. Larry Ellison of Oracle and the focus on Maui and Lanai. Michael Dell of Dell computers is positioned in Hualalai Four Seasons Resort on the Big Island. There are rumors that they may move their corporate offices to Hawaii.
The popular trend is Buyers who can work from home. Many have decided to move their family to a safe lovely environment and they can work from anywhere there is technology.
Highest Priced Home in 2020
The highest-priced home sold on the Big Island of Hawaii was an oceanfront 6 bedroom/ 6 bathroom home in Kukio at $37M. in December 2020.
Sales Prices & 2020 Residential Sales Statistics
Check out Residential Sales Statistics provided by TG – Title Guaranty Escrow.
Official TG REPORT – December 2020 Residential Sales
Increase Land Purchase and New Home Construction
Brand new homes are in high demand and inventory is shrinking. With plenty of land and homes sites available, we are seeing more Buyers eager to build a custom designed home on their own land.
Some Buyers are eager to purchase during the construction phase. One example was a $7.2M home in Mauna Kea Resort sold prior to breaking ground with completed plans, permitting and construction crew all lined up. We know a few homes available for sale during the construction phase right now.
Vacation Rental Properties will Prosper Again
Hawaii was completely shut down for 8 months from March to November 2020 per Hawaii Governor mandate in order to keep Hawaii and tourists safe during Corona Virus Crises. All Hotels and vacation rental properties were shut down and vacationers were not allowed into Hawaii.
Now that Hawaii is open again it is one of the safest places in the world. Hawaii continues to require COVID Pre-testing prior to traveling to Hawaii including returning residents. Hawaii has become a safe and prime location to vacation and to invest in real estate. As traveling becomes safer and easier, Short Term Vacation Rentals will become prosperous again in 2021.
Trends for 2021 Hawaii Real Estate Market
- Increase in sales and demand for residential homes and resort condos.
- Vacation Rentals will become prosperous again.
- Lots, home sites and large parcel sales will increase.
- Custom home building and developer new home building will boom.
- Hawaii will attract those who can live and work from home.
- Commercial real estate and new business opportunities will increase.
- Stay tuned… Let’s see how the momentum of Hawaii Real Estate will continue into 2021.
Hawaii Luxury Real Estate Office in Mauna Lani Resort in the Fairmont Orchid Hotel is open again.
Hawaii Luxury Real Estate specializes in listing and marketing resort properties in the Kohala Coast Resorts of Mauna Lani, Mauna Kea and Waikoloa Beach. Extensive marketing program provides innovative digital marketing platforms.
Our 12 licensed Real Estate Agents have excellent client representation and negotiation skills.
Vacation Rental Management offers superior digital marketing with world wide network of the top agencies.