Corcoran Luxury Market Report July 2023

About Corcoran Pacific Properties

Corcoran Pacific Properties, the exclusive Hawaii franchisee of The Corcoran Group, is a locally owned and operated company, founded in 2005 with a simple philosophy: treating every client as a friend, and every transaction as if it was our own.

Over the past 17+ years, honoring this philosophy, we established a culture of service and efficiency fueled by high-tech, smart investments in agents, and the tools they need to deliver world-class service while helping clients achieve their real estate goals.

By choosing only the most successful, experienced real estate professionals and dedicating every resource to support their success, we’ve grown to be the brokerage of choice serving Kauai, Oahu, Maui and Hawaii Island.

With our clients at the heart of our business, Corcoran Pacific Properties is dedicated to excellence, innovation and to continuously raising the bar when it comes to impeccable service, expert insight and a relationship-first approach.

Table of Contents

Page 5 Luxury Report Explained

Page 6 Welcome Message

Page 7 Hawaii Luxury Market Review

Page 8-13 Oahu Market Review

Page 14-19 Island of Hawaii Market Review

Page 20-25 Maui Market Review

Page 26-31 Kauai Market Review

Page 33-36 North American Luxury Market Review

Page 37 13-Month Market Trends

Page 38 Single-Family Homes Monthly Overview

Page 39 Attached Homes Monthly Overview

Page 48 Thank You!

Luxury Report Explained

The Institute for Luxury Home Marketing has analyzed a number of metrics — including sales prices, sales volumes, number of sales, sales-price-to-list-price ratios, days on market and price-per-squarefoot – to provide you a comprehensive North American Luxury Market report. Additionally, we have further examined all of the individual luxury markets to provide both an overview and an in-depth analysis - including, where data is sufficient, a breakdown by luxury single-family homes and luxury attached homes.

It is our intention to include additional luxury markets on a continual basis. If your market is not featured, please contact us so we can implement the necessary qualification process. More indepth reports on the luxury communities in your market are available as well.

Looking through this report, you will notice three distinct market statuses, Buyer's Market, Seller's Market, and Balanced Market. A Buyer's Market indicates that buyers have greater control over the price point. This market type is demonstrated by a substantial number of homes on the market and few sales, suggesting demand for residential properties is slow for that market and/ or price point.

By contrast, a Seller's Market gives sellers greater control over the price point. Typically, this means there are few homes on the market and a generous demand, causing competition between buyers who ultimately drive sales prices higher.

A Balanced Market indicates that neither the buyers nor the sellers control the price point at which that property will sell and that there is neither a glut nor a lack of inventory. Typically, this type of market sees a stabilization of both the list and sold price, the length of time the property is on the market as well as the expectancy amongst homeowners in their respective communities – so long as their home is priced in accordance with the current market value.

Report Glossary

REMAINING INVENTORY: The total number of homes available at the close of a month.

DAYS ON MARKET: Measures the number of days a home is available on the market before a purchase offer is accepted.

LUXURY BENCHMARK PRICE: The price point that marks the transition from traditional homes to luxury homes.

NEW LISTINGS: The number of homes that entered the market during the current month.

PRICE PER SQUARE FOOT: Measures the dollar amount of the home's price for an individual square foot.

SALES RATIO: Sales Ratio defines market speed and determines whether the market currently favors buyers or sellers. Buyer's Market = up to 14%; Balanced Market = 15 to 20%; Seller's Market = 21% plus. If >100%, sales from previous month exceed current inventory.

SP/LP RATIO: The Sales Price/List Price Ratio compares the value of the sold price to the value of the list price.

Map of Luxury Residential Markets

Welcome to the Luxury Market Report, your guide to luxury real estate market data and trends for North America. Produced monthly by The Institute for Luxury Home Marketing, this report provides an in-depth look at the top residential markets across the United States and Canada. Within the individual markets, you will find established luxury benchmark prices and detailed survey of luxury active and sold properties designed to showcase current market status and recent trends. The national report illustrates a compilation of the top North American markets to review overall standards and trends.

Hawaii Luxury Market Review

Corcoran Pacific Properties is pleased to present a closer look at the luxury real estate market in Hawaii, which includes detailed statistical analysis for your in-depth review on Oahu, the Island of Hawaii, Maui and Kauai for June 2023.

This month we look back at the first six months of 2023 to analyse the status of the luxury real estate market in Hawaii as we hit the half year mark.

The start of the year saw a market in flux, continuing from the last quarter of 2022, which saw sellers and buyers hesitating in their real estate decisions given geo-political concerns, rising inflation, interest rates and overall uncertainty about the economy.

While there seems to be a disconnect in today’s market between perception and reality – given most media reports focus on the comparative decrease in the number of sales – in fact, month over month the volume of properties purchased have increased.

Data across all the islands shows that in the single-family market sales since January have risen 123% (from 52 in January to 116 in June) and in the attached market 97.5% (from 80 in January to 158 in June).

Reviewing the monthly data for each island, over the last six months, and although unit sales are lower than their comparative months in 2022, statistically both single-family and attached markets have, for the most part, remained either favorable to sellers or balanced.

What has created this anomaly, especially when monthly inventory levels are also comparatively higher than last year, why does the luxury market remain statistically a seller’s market?

The reason is two-fold, the level of inventory has still not returned to pre-Covid levels mainly because the number of new listings entering the market remains significantly below traditional norms. Secondly, the proportionately faster increase of sales over the last six months has countered the increase of inventory levels.

The reality is that today’s market, bar any future extraordinary events, provides a more sustainable and stable environment for both buyers and sellers, giving each the time and understanding to adjust to current expectations and requirements.

In a snapshot, we do not expect to see any dramatic price decreases while inventory levels remain low but also anticipate that buyers will likely be more discerning in their value for money expectations.

As in all markets, there are always opportunities and challenges for buyers and sellers for certain property locations, types and price points. It is important to work closely with a real estate expert familiar with local trends as they are the best resource to navigate the specific and varied markets found within the Hawaiian Islands.

181 187

13-Month Luxury Market Trend4

Median Data Review | June

761 $750

- 1 %

100.00% 100.00%

Oahu Market Summary | June 2023

• The Oahu single-family luxury market is a Seller's Market with a 23% Sales Ratio

• Homes sold for a median of 100.00% of list price in June 2023.

• The most active price band is $1,800,000-$1,899,999, where the sales ratio is 100%.

• The median luxury sales price for single-family homes is $2,080,000

3Square foot table does not account for listings and solds where square foot data is not disclosed. 4Data reported includes Active and Sold properties and does not include Pending properties.

Luxury Inventory vs. Sales | June 2023

363 431

13-Month Luxury Market Trend4

$857 $888

VARIANCE: 4 %

Median Data Review | June

$925k $938k

100.00% 98.81%

VARIANCE: - 1 %

Oahu Market Summary | June 2023

• The Oahu attached luxury market is a Seller's Market with a 21% Sales Ratio

• Homes sold for a median of 98.81% of list price in June 2023.

• The most active price band is $750,000-$799,999, where the sales ratio is 44%.

• The median luxury sales price for attached homes is $938,000

• The median days on market for June 2023 was 29 days, up from 12 in June 2022.

12 29

VARIANCE: 142 %

3Square foot table does not account for listings and solds where square foot data is not disclosed.

4Data reported includes Active and Sold properties and does not include Pending properties.

Single-Family Attached

Island of Hawaii

ISLAND OF HAWAII

Luxury Inventory vs. Sales | June 2023

ISLAND OF HAWAII

13-Month Luxury Market Trend4

Single-Family Homes

121 145 VARIANCE: 32 %

VARIANCE: 20 %

28 37 VARIANCE: - 3 %

$1.60m $1.55m

$743 $700

100.00% 97.18% VARIANCE: - 6 %

VARIANCE: - 3 %

9 27

VARIANCE: 200 %

Island of Hawaii Market Summary | June 2023

• The Island of Hawaii single-family luxury market is a Seller's Market with a 26% Sales Ratio

• Homes sold for a median of 97.18% of list price in June 2023.

• The most active price band is $5,800,000-$6,799,999, where the sales ratio is 100%.

• The median luxury sales price for single-family homes is $1,550,000

• The median days on market for June 2023 was 27 days, up from 9 in June 2022.

3Square foot table does not account for listings and solds where square foot data is not disclosed. 4Data reported includes Active and Sold properties and does not include Pending properties.

- 44

$1,025 $874

VARIANCE:

13-Month Luxury Market Trend4

100.03% 98.76%

- 1 %

7 38

Island of Hawaii Market Summary | June 2023

• The Island of Hawaii attached luxury market is a Seller's Market with a 68% Sales Ratio

• Homes sold for a median of 98.76% of list price in June 2023.

• The most active price band is $1,100,000-$1,199,999, where the sales ratio is 600%.

• The median luxury sales price for attached homes is $1,300,000

3Square foot table does not account for listings and solds where square foot data is not disclosed.

4Data reported includes Active and Sold properties and does not include Pending properties.

ISLAND OF HAWAII Sales Activity

Single-Family

Attached

Maui Hawaii

Luxury Inventory vs. Sales | June 2023

13-Month Luxury Market Trend4

133 150 VARIANCE: - 24 %

VARIANCE: 13 %

29 22 VARIANCE: - 14 %

$2.50m $2.16m

$887 $1,067

VARIANCE: 20 %

98.52% 95.73%

VARIANCE: - 3 %

94 166

VARIANCE: 77 %

• The Maui single-family luxury market is a Balanced Market with a 15% Sales Ratio

• Homes sold for a median of 95.73% of list price in June 2023.

• The most active price band is $2,200,000-$2,399,999, where the sales ratio is 60%.

• The median luxury sales price for single-family homes is $2,162,500

• The median days on market for June 2023 was 166 days, up from 94 in June 2022.

Luxury Inventory vs. Sales | June 2023

13-Month Luxury Market Trend4

VARIANCE: - 6 %

89 84 VARIANCE: - 12 %

42 37 VARIANCE: - 14 %

$1.81m $1.55m

$1,594 $1,491

100.00% 100.00% VARIANCE: - 6 %

VARIANCE: 0 %

71 116

VARIANCE: 63 %

• The Maui attached luxury market is a Seller's Market with a 44% Sales Ratio

• Homes sold for a median of 100.00% of list price in June 2023.

• The most active price band is $1,200,000-$1,299,999, where the sales ratio is 200%.

• The median luxury sales price for attached homes is $1,550,000

• The median days on market for June 2023 was 116 days, up from 71 in June 2022.

Single-Family Attached

Kauai Hawaii

Luxury Inventory vs. Sales | June 2023

60

VARIANCE: N/A N/A N/A

13-Month Luxury Market Trend4

Median Data Review | June

100.00% 97.36%

- 3 %

6 99

• The Kauai single-family luxury market is a Seller's Market with a 21% Sales Ratio

• Homes sold for a median of 97.36% of list price in June 2023.

• The most active price band is $1,300,000-$1,399,999, where the sales ratio is 500%.

• The median luxury sales price for single-family homes is $2,200,000

Luxury Inventory vs. Sales | June 2023

35 27

VARIANCE: - 23 %

VARIANCE: N/A N/A N/A

13-Month Luxury Market Trend4

Median Data Review | June

15 11

VARIANCE: - 27 %

100.00% 94.63%

VARIANCE: - 5 %

• The Kauai attached luxury market is a Seller's Market with a 41% Sales Ratio

• Homes sold for a median of 94.63% of list price in June 2023.

$1.25m $1.15m

VARIANCE: - 8 %

11 14

VARIANCE: 27 %

• The most active price band is $3,000,000-$3,499,999, where the sales ratio is 200%.

• The median luxury sales price for attached homes is $1,150,000

• The median days on market for June 2023 was 14 days, up from 11 in June 2022.

Single-Family Attached

Luxury

IS IN EACH DETAIL.

HUBERT DE GIVENCHY

North American Luxury Review

Six Month Review of 2023

This month we take stock of the luxury real estate market at the six-month mark and end of the second quarter for 2023. The most significant trend, and one that seems contrary despite the continuous reports of lower sale volumes compared to 2022, is that, for the most part, the North American luxury real estate remains a seller’s market.

June’s statistics show that out of the 150 single-family home markets researched by The Institute, 110 are seller markets, 20 are balanced (neither favorable to sellers nor buyers), and only 20 are favorable to buyers. It is important to note that 13 of the buyer markets are either winter resorts or destinations, i.e., their real estate sales are typically not as strong during the summer months.

The attached market shows an even stronger bias towards sellers; out of the 103 reviewed, 84 are seller markets, 8 are balanced, and 11 are buyer markets.

While the number of sales in June 2023 compared to June 2022 fell approximately 11.5% for single-family homes and 14.0% for attached properties, sales have increased by 170% and 119% since January 2023 and by 8% and 1% compared to May 2023 respectively. Interestingly, in 2022 we saw the number of sales in June decline compared to May.

While we do not expect to see a continued increase in the volume of monthly sales during July and August – as these are typically slower months in the real estate calendar – these sales figures do show that the overall luxury market across North America is holding its own, especially when it comes to demand.

Inventory levels continued to climb, albeit slowly; single-family homes increased by 2.22% compared to June 2022, and attached properties rose by 8.56%, which has helped increase the opportunity for sales. However, the continued lack of new inventory each month, falling 19.18% compared to last June for single-family homes and 13.09% for attached properties, is probably the major contributor to luxury markets remaining favorable to sellers.

Until the volume of properties available for sale increases substantially, back to traditional norms recorded pre-Covid, it is unlikely that the luxury market will transition into a true buyer’s market anytime soon.

While some luxury properties may have felt some downward pressure on their price – and buyers are able to find more opportunities, especially when negotiating terms such as requesting repairs or closing costs – overall low inventory is the challenge for every luxury market, mainly because fewer sellers are willing to list their homes in this current climate.

Price consistency is also a strong indicator that the luxury market is still favorable to sellers; even though there is much talk about lack of sales, the sold price-to-list price ratio remains close to 100%. In June, single-family homes sold at an average of 99.67%, and attached properties sold at an average of 99.69%.

Looking at demand, sales, and prices during the first half of 2023, the North American market has continued to show a resilience that many would not have predicted at the start of the year. Looking to the immediate future, we can now say, with some confidence, that we are entering a period of more stability and sustainability.

A Global Perspective

A great deal of wealth was created globally over the last three years. Despite the downturn of the global equity markets in early 2022, according to Wealth-X, an Altrata Company, there has been a return to the steady increase of wealth creation since last June.

Although the cost of borrowing has increased globally, one long-term effect of the pandemic is that it has refocused the affluent’s desire to own property, the significant increase of cash sales by the affluent reaffirms their desire to buy luxury real estate.

The consistency of demand also shows a resilience that despite interest rate increases for the affluent who chose to borrow money, they recognize it is a temporary situation that can be actively managed.

A recent report from Mordor Intelligence predicts that the global luxury real estate market will register a CAGR (compound annual growth rate) of more than 2% each year over the next five years.

Opportunities abound both in local markets and globally, and the affluent are bullish when deciding on their luxury choices in the long-term. There is a greater expectation for emerging markets to see the benefit as the global market returns.

In a recent report on the Global House Price Index from Knight Frank (tracking 56 countries), while there was a slowdown in the annual price growth during 2022, the first quarter of 2023 saw a 1.5% rise, compared to only a 0.6% increase in last quarter of 2022.

Liam Bailey, global head of research at Knight Frank, stated, “on its own, this reversal doesn’t confirm that global markets are set to improve – rather, it does highlight that tight supply, limited new housing constructions, and strong household formation are acting to underpin prices in many markets.”

The report also showed that 39 out of 56 markets had an annual gain in the first quarter, with eastern and southeastern Europe – Turkey, North Macedonia, and Croatia showing the top gains in their price indexes.

Not only are the wealthy diversifying their portfolio in the U.S. and Canada, as per Wealth-X, where 79% of those with a net wealth of over $5 million own at least two properties, but this trend is on the rise globally too.

A combination of the lockdown, a growing appetite to travel or relocate on a semi-permanent basis is seeing an uptick in the affluent obtaining a second passport or citizenship in 20231, a figure that rises to 16% amongst Asian ultra-high-net-worth individuals.

This is a complex landscape to navigate, as changes can be rapid and very dependent on whether a country has fulfilled its goals. For instance, while Canada has a large incentive to drive new immigrants to its shores, on the other hand, they have introduced a foreign buyer ban for two years (starting January 2023) in the major metropolitan areas. Golden Visa programs were highly attractive for potential buyers in Portugal and Ireland, but recently they were terminated.

However, against all the economic and stock market uncertainty, the affluent are often the first to recognize the opportunity this presents and look to diversify, whether to hedge against inflation or simply spread the risk, so expectations are that the affluent will expand their portfolios across multiple countries in the future.

The Long View

The affluent see real estate as a safe long-term asset, as the equity and crypto markets have become unsteady investments over the last year. Interestingly, the emphasis on purchases has changed in the North America considerably. Before the pandemic, one of the most significant reasons for purchasing was the return on investment; today, the emphasis has moved towards an improved lifestyle and security as being equally important. Luxury may no longer solely be defined by size or price, but individuals are certainly looking to purchase a premium property that meets their current requirements and will pay the ticket price if it checks the boxes. Requirements of the wealthy are driven by exclusivity and a distinctive set of qualities in their new properties, not to mention a need to diversify their real estate portfolio.

For homeowners looking for their next home, it is still important to recognize that although costs to purchase will be much higher currently, over the long-term real estate offers one of the most consistent ways to see a good return. More importantly, ownership provides security and a haven for their family.

1. https://www.knightfrank.com/wealthreport

For the Luxury North American Market

Luxury Monthly Market Review

A Review of Key Market Differences Year over Year

Single-Family Homes

4,949 2,773 $12,538 6 6.05%

Single-Family Homes Market Summary | June 2023

• Official Market Type: Seller's with a 38.91% Sales Ratio.1

• Homes are selling for an average of 99.67% of list price

• The median luxury threshold2 price is $925,000, and the median luxury home sales price is $1,347,500.

• Markets with the Highest Median Sales Price: Aspen ($9,500,000), Telluride ($6,532,500), Vail ($5,877,500), and Paradise Valley ($4,275,000).

• Markets with the Highest Sales Ratio: East Bay, CA (146%), Hamilton County, IN (116%), St. Louis (102%), and Howard County, MD (93%).

A Review of Key Market Differences Year over Year

Attached Homes

$42,500

7

• Official Market Type: Seller's Market with a 33.42% Sales Ratio 1

• Attached homes are selling for an average of 99.69% of list price

• The median luxury threshold2 price is $700,000, and the median attached luxury sale price is $850,000

• Markets with the Highest Median Sales Price: Vail ($4,208,000), Aspen ($3,850,000), Park City ($2,848,500), and San Francisco ($2,450,000).

• Markets with the Highest Sales Ratio: Howard County, MD (204%), Montgomery County, MD (165%), Fairfax County, VA (129%), and DuPage County, IL (126%).

Luxury Monthly Market Review

Luxury Monthly Market Review Attached Homes

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