Oahu

Oahu Luxury Home Sales & the Impact of the Stock Market

In a recent post, CoreLogic looked at the correlation between stocks and the sales of upper-end properties ($1 million+ sales price). The report revealed:

 “The powerful ‘wealth effects’ generated by the rapid rise in equities between 2009 and 2015 drove a large rise in the sales of homes that sold for $1 million or more.

Historically, sales of homes priced $1 million or more averaged 1.2 percent of all home sales. The spread between high-end sales and equities widened during the housing bubble but then moved more closely in unison. By the time the equity markets had peaked in May 2015, the $1 million or more share of the market had nearly doubled, averaging 2.2 percent for the remainder of the year.”

This makes sense. As people see their wealth increasing, they feel more confident in their purchasing power. And, of course, that would also impact their decisions regarding real estate. The stock market dipped earlier this year and there was quite a bit of anecdotal evidence that the upper-end market was beginning to soften.

As we can see in the chart below, the market is again flourishing. That may rejuvenate the luxury market as we move through the rest of the year.

20160811-STM

As we proceed through 2016 and enter 2017, the strength of the stock market will be a key factor in the strength of the luxury market. If the stock market falters, look for high-end sales to slow. If the market advances, as it has shown signs of doing most recently, the high-end market will advance.

GetMedia
95-1088 Inana Street, Mililani Mauka, HI (MLS# 201619925) | Listed at $1,250,000 FS

Bottom Line

If you are a homeowner who is debating listing your home for sale this year, now may be the time. Let’s get together to help you take advantage of the buyers that are ready, willing, and able to buy in your area.

13903363_1252362004788458_7965833738642120949_n

Beach Club at Hoakalei Wai Kia Lagoon

If you need any information about selling or about buying a home, please contact me.

Aloha for now! See you next time!

MM

Live the dream…Get your Hawaii Life now.
#MMSellsHawaii

Comments (0) Show CommentsHide Comments (Remember)

Cool. Add your comment...

Your email address will not be published. Required fields are marked *

Leave your opinion here. Please be nice. Your Email address will be kept private, this form is secure and we never spam you.

More Articles from Hawaii Life