It’s no secret that the pandemic has shaken up our world’s economy. Perhaps the biggest surprise to many, especially those working in the real-estate business, is that the housing market didn’t bust. It boomed. The median home price in the US is up a wowing 24% since the start of the pandemic.
Before the Pandemic, we were already seeing people moving from the big cities to more desirable, rural locations in states like Texas and Florida which also come with the perk of having no state income tax. Now, people seem to be leaving high population areas out of fear of the virus. Others are moving simply because they can now that they’re no longer tied to the office. Hawaii is among the states that have turned into incredibly hot spots for real estate. Tourism and vacation rentals have also risen since travel outside the U.S. has nearly come to a halt. Large-scale projects like Kakaako Condos continue to grow due to high demand. The boom has been great for Hawaii’s economy overall, though it has led to some negative outcomes for locals who are now struggling to find affordable properties and rentals.
In the midst of all of this economic shuffling, we’re seeing celebrities with houses in Hawaii like Paul Allen and Oprah cashing in and making quite the profit. Price tags for some of the most premium Hawaii real estate may shock you.
Paul Allen’s former Hawaii estate sells for $43 million
On the west of the Big Island of Hawaii in Kailua-Kona sits Allen’s 22-acre property. The large property features 2 homes. The main house measures 9,080 square feet with 5 bedrooms, 5.5 baths, and a large pool. The second comes in at 2,968 square feet with 6 bedrooms and 5.5 baths. There’s also plenty of room to park your megayacht offshore.
Allen originally bought the property for $11 million back in 1997. That adds up to a cool $32 million dollar profit for his estate, a nearly 300% return on his investment. This sale amounts to the highest price ever recorded for a home on the Big Island according to Pacific Business News. The unknown buyer closed on the Allen property just 4 days before another huge sale on the island of Maui according to real-estate agent Anne Hogan Perry of Compass Real Estate.
The real-estate agency notified buyers of a private listing for a 21,700 square foot home designed by the late Ricardo Legorreta. Legorreta was a famous Mexican architect known for his modern designs that celebrated Mexican culture. The property includes 8 bedrooms, 8 baths as well as a pool with a jacuzzi. On July 30th, the property sold to Adam Weiss and Barret Swatek for $45 million making it the second-highest home sale in state history. The highest recorded sale for a single-family residence was a much larger property which sold for $46.1 million in 2018.
Perry commented on the spike in Hawaii real estate and Hawaii homes for sale saying, “To have this many sales over $20 million is huge.”
Oprah sells Orcas property for $14 million
Near Seattle, business mogul Oprah Winfrey sold her 43-acre Orcas Island property. Winfrey purchased the property, named Madroneagle, for $8.3 million in 2018 to remodel. The gated property includes a 10,251 square mansion as well as several additional houses, half a mile of beach, a greenhouse, and a workshop.
Winfrey sold the property to Lophodytes LLC for $14 million nearly doubling her money in just a few short years.
The surging demand for Hawaii real estate is perhaps one of the better surprises to come out of the pandemic. As we get closer to the end of the summer, the market is still booming across the country. Many folks are adjusting their lifestyles leaving multi-family units in favor of single-family properties. Lower interest rates on mortgages put in place for the pandemic have allowed some to buy homes earlier than they expected. If you’ve been thinking about selling your home, now might just be the time to cash in like the celebrities. Mortgage rates are expected to rise within the next two years, which may be a sign that the boom will come to an end. If you’re looking to buy, there will likely be better deals by 2023.