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Tuesday, October 5, 2010

The Lowdown on Honolulu's Luxury Market

I was intrigued by some of the data detailed in the 2010 Luxury Home Real Estate Market Report released by Prudential Locations early last month, and thought I'd pass along a few of the more intriguing highlights:
 

  • I think, locally, there’s a perception that most of Oahu’s luxury homebuyers are Asian or Mainland investors. And, certainly, those two parties are significant players in the luxury-market segment—since 2008, California and other Mainland buyers have made up 22 percent of the market; buyers from Asia total another 10 percent. However, the largest group of luxury buyers—64 percent—came from Hawaii. Thus far, this year’s data is trending the same, with a slightly higher percentage of Asian buyers and a minor decrease in Mainland buyers.
  • Luxury homes are moving fast. The current days-on-market stats, which detail the number of days a typical house takes to sell and enter into escrow, indicate a big drop in the amount of time in which luxury homes are sitting on the market. According to the report, current sold-time levels have reached their lowest point in 10 years.
  • During the past year, the majority of luxury home sales—74 percent—have been in the $1.2 to $2 million range. This statistical nugget could partially be the result of the “trading-up” trend: buyers taking advantage of ridiculously low interest rates to upgrade to nicer digs.
  • Not only are luxury homes selling faster; fewer price reductions are being made. Thus far this year, about 25 percent of high-end homes have had a list-price reduction before selling, a marked decrease from mid-2009, when close to 50 percent of luxury-home listings were reduced in price before finally selling.

For more information: Visit www.prudentiallocations.com.

Posted on Tuesday, October 5, 2010 in Permalink

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About This Page

Honolulu Real Estate focuses on the Hawaii housing market, condos and homes for sale, Hawaii rentals and general news about real estate in Hawaii. It also includes stories on apartment living, home decor and profiles.
 


Melissa Chang graduated from the University of Hawaii with a degree in journalism and has been blogging since 2007, mostly on food and travel. She works primarily in social media, so you can find her online @Melissa808 on Twitter and Instagram.


 


Jaymes Song is a real estate agent at Prudential Advantage Realty in Kahala. Jaymes is in the top 7 percent of Prudential agents nationwide. Previously, Jaymes was at The Orange County Register, Honolulu Star-Bulletin and rose through the ranks to overseeing news and operations for AP in Hawaii and the Pacific Rim. Jaymes lives in the Portlock area and loves his real full-time job of being dad to two curious kids.


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