It was a summer of extremes with record temperatures across the country — Honolulu included. But it wasn’t just the climate heating up this summer — so did the prices of single-family homes and condominiums. By the end of the third quarter, home prices leveled off.
What’s In The Pipeline?
The number of properties that are in escrow are a forward indicator of what home sales might be in the future. An escrow typically takes 45 to 60 days from the time an offer is accepted until the time it closes. At the end of the second quarter, the number of single-family homes in escrow at $1 million or higher, was down 15 percent from the same period a year ago. We usually see an increase in the second quarter. At the end of the third quarter, the number of single family homes at $1 million or higher surged to a 70 percent increase over last year. What does all of this mean? If all of the transactions currently in escrow close, we will see a strong performance of sales for our luxury real estate market in the coming months.
The largest increase is in the price ranges between $1 million and $4 million. The sweet spot remains in the $1 million to $2 million price range, representing almost 80 percent of the sales units for luxury homes. The $2 million to $3 million price range is also active with an 86 percent increase in escrows over the prior year, and the $3 million to $4 million price range has 3.5 times more units in escrow compared to last year. Our Honolulu Multiple Listing Service is currently showing only two homes in escrow priced at $4 million or more at the end of the third quarter.
In a competitive market, expertise matters. The ability to provide clients with in-depth knowledge of this segment of the market, skillfully negotiate on your behalf, and strategically market your home to a targeted group of qualified buyers is how Coldwell Banker Pacific Properties delivers exceptional results.