Luxury single family homes on Oahu, Hawaii give current buyers the most negotiating opportunity. The primary reason for this is that this class of property has more months of inventory than any of the other existing price ranges.
Luxury price ranges vary by area, but an overall good rule of thumb for Oahu is a single family homes in above average condition at around $2,000,000 or more would generally be a luxury property. There are always exceptions including areas like Kahala, Hawaii Loa Ridge, Portlock, Hawaii Kai, etc. where you might add $500,000 or more to the price range for a luxury home.
Be aware that savvy sellers price homes correctly to move quickly without having to take multiple price reductions. So, work with an agent who knows the market and also sign up for Property Watch (Listings by Email) reports to keep you up-to-date on listings and price reductions in the area you desire.
Months of inventory for single family homes in the $1,900,000 and over price range is currently 19.4 months according to the Honolulu Board of Realtors. This means excess supply and continued price reductions until we get around 6 to 7 months of inventory. Good homes in great areas move faster and won’t necessarily have the same pricing issues so, if you see something really great, snap it up. But there are some pretty good areas where you can get deals.
Market history over the last ten months shows many of the homes at $2 million or more adjusted their list price down to 94% of the original list price and sold at 87% of the original list price while lower priced homes adjusted their list price down to 98% or more of original list price and sold at 102% of original list price.