Kahala Summary
In 2024, Kahala's real estate market demonstrated notable activity within Honolulu's luxury sector. A total of 27 single-family homes were sold, with an average sale price of $3,708,185 and an average price per square foot of $1,053.06. Homes spent an average of 65 cumulative days on the market before selling.
In terms of overall market trends, Oahu's luxury real estate sector demonstrated resilience. The third quarter of 2024 saw a 16.3% increase in sales of single-family homes priced between $2 million and $3 million, with 50 homes sold compared to 43 in the same period the previous year. Similarly, homes priced between $3 million and $5 million experienced a significant 66.7% jump in sales, with 30 homes sold in Q3 2024 compared to 18 in Q3 2023.
Comparatively, the North American luxury real estate market experienced a robust year. The Institute for Luxury Home Marketing reported that, as of June 2024, out of 150 markets analyzed, 95 were seller's markets, 32 were balanced, and only 24 favored buyers. This indicates a strong demand for luxury properties across the continent.
Notable and significant transactions underscored the luxury sector's vitality. For instance, a Malibu mansion sold for $210 million, setting a new price record in California. Similarly, Palm Beach saw a sale of a 28,600-square-foot home on Tarpon Island for $152 million. [See 5 of the most expensive homes sold in the US this year.]
While Kahala's average sale price is modest compared to these record-breaking transactions, its market metrics align with broader luxury market trends. The average price per square foot and days on market in Kahala are comparable to other high-end markets, indicating a healthy demand and efficient sales process.
Looking ahead to 2025,
several factors could influence Kahala's real estate market:
- Economic Indicators: Nationally, the luxury real estate market ended 2024 on a strong note, with significant improvements over 2023, including growth in sales, median sold prices, and inventory levels. If these positive trends continue, they could bolster buyer confidence and investment in luxury markets like Kahala. [Read More Here]
Demographic Shifts: The rise of affluent female buyers, termed "she-elites," is reshaping the luxury market. Women with a net worth of $5 million or more now own 15.2% of high-priced residential properties in the U.S.A This demographic's growing influence could lead to increased demand for luxury properties in desirable locations such as Kahala. [Read New York Post Article]
- Climate Considerations: Despite awareness of climate change, luxury homes in areas prone to environmental risks continue to see high demand. Buyers often prioritize economic factors and personal preferences over potential climate threats. [link to article here] Kahala's coastal location may attract buyers seeking oceanfront properties, though it's essential to monitor how climate and weather concerns might impact future purchasing decisions.
Given these factors, Kahala's real estate market is poised to remain robust in 2025. The area's appeal, combined with favorable national trends and evolving buyer demographics, suggests continued demand for luxury properties. However, it's crucial for stakeholders to stay informed about broader economic conditions and emerging trends to navigate the market effectively.
Travis McGaughy: Your Local Kahala Luxury Real Estate Expert
Travis McGaughy is a top-performing Realtor Broker and dedicated Kahala, HI, resident specializing in luxury residential real estate in Kahala and East Honolulu. As a proud Kahala homeowner and active member of the community, Travis brings unparalleled expertise and insight into the area's unique market trends. With a deep understanding of Kahala's luxury real estate landscape and a commitment to daily market analysis, Travis ensures exceptional guidance for buyers and sellers alike. If you're looking to navigate the prestigious Kahala real estate market with confidence, Travis is your trusted local expert.
For personalized Kahala real estate advice, contact Travis McGaughy today at 808-542-6540 or email him at [email protected]
