Luxury real estate in Hawaii has soared to new heights, fueled by a combination of rising equity markets, low interest rates, and pent-up demand due to the coronavirus pandemic.

Sales volume for homes worth $3 million and more increased 234.5% in the first quarter of 2019 compared to 2020. According to the MLS, record volume of deals reached $3.7 billion. Hawaii Life’s Luxury Market Report. But sales of homes priced above $10 million have climbed at an even more robust pace — trouncing state records.

It’s been “just like a rocketship,” he said. Hawaii Life Real Estate CEO Matt Beall. According to Matt Beall, CEO, “It’s just an unbelievable, amazing event for the markets.”

Beall who has sold real estate in Hawaii for over ten years said that there’s no faster market than Hawaii. Most of the transactions that his brokerage brokered in high-end deals are all-cash.

“There were some people who showed up. They’re like, “Okay, I’m okay.” [going to] … offer on this house sight unseen. … The closing will take place over two weeks. I’m going to have a 13-day due diligence, I’m going to fly in on the 12th day, … meet with all the inspectors, … and move in on the 14th day.'”

Beall claimed that deals worth $20 million have been closed within 30 days.

I think this pace caught the professionals and the sellers off-guard. He said, “It’s almost like…that’s unusual.”

In 2017, the state set a new record in volume with 317 transactions in the first quarter and luxury home sales totalling $1.67billion. In the same period 2021, the state saw more than twice the volume of sales and nearly two times as many transactions with 634 homes selling for over $3 million. This is an average selling rate of 16 luxury homes per week over 39 consecutive weeks.

“In his report, Beall stated that the volume and speed of Hawaii’s real-estate market had surpassed all records.

The gains occur at a time where most foreign buyers can’t visit Hawaii due to Covid-19 limitations. Beall indicated that about 4 percent of state home sales were made by foreign buyers in 2019,

He said, “It is really important to me that all this, or even the vast majority, has been done domestically.”

Beall noted that Hawaii Life has also had a record year with over $3 billion in revenue for the first three quarters. The $1.38 trillion in sales was made up of luxury homes.

Data shows the average home selling for luxury in California sold for $6million, an increase of 12.4% over last year. The average cost per square foot was $1,795.

Beall stated in his report that “we are seeing buyers coming from entertainment, finance, and technology sectors to purchase high-profile listings as well as off-market listings at record prices.”

A deal that involved Carlos Santana the famous guitarist is one of 64 transactions exceeding $10 million. He bought an 8,173-square-foot mansionKauai Island for $20.5 Million Beall claimed that Santana was represented by his firm as well. 

Claudia Huntington was Claudia Huntington’s Capital Group Portfolio Manager. Claudia Huntington sold Beall’s company. 6,674-square-foot residence on the Big Island. It consists of seven pavilions that overlook Kauna’oa Bay. The home was sold at $18.53million, which is approximately $2,776/square foot.

“I am strangely bullish about the value. … One thing I know about Hawaii as compared to say, Florida or New York … we are like literally a speck of sand, surrounded by 2,000 miles, it is a tiny, tiny market,” Beall said, adding that the market has a dwindling inventory.

If you take a look at an inventory chart, the trend is down, to the right and flatline. He said that prices are being driven up because of a shortage.

A number of notable sales have attracted attention to the market. Mark Zuckerberg and Priscilla Chao reportedly purchased 600 additional acres in Kauai, bringing their combined ownership to the islands to around 1,300 acres.