Before investing, however, you need to do some research and plan out your finances and learn about the best neighborhoods to buy in. If you see a home that has been sitting on the market typically the first question that comes to my mind is, what's wrong with it? This is not necessarily indicative of a slowing market trend but rather a natural occurrence when you have a statistically small number of transaction in the area. I talk to so many people who are either thinking about it or are already making the move to Hawaii and I ABSOLUTELY LOVE IT! Japanese and other foreign buyers are deeply interested too, however the 2020 Covid pandemic threats and travel restrictions have reduced interest from foreign buyers. Check out these property management firms in Hawaii. Timing the market for buying or selling is a big gamble. whether homes are becoming more or less affordable. The islands are also home to over 1.4 million year-round residents. I now have spent more of my life here on the island of Oahu than anywhere else. A low or shrinking percentage of homes selling above list price suggests that the market is becoming less competitive. Listing prices are down and homes are sitting on the market which can allow buyers to negotiate a great deal. $480,000 on Hawai'i Island. Maui is a market of few listings and big price increases. However, these trends are unlikely - at least in the coming year. The average price of a house in Hawaii rose 10.5% to $970,000. The number of sales over the last three years peaked at 1,978 in June 2021; compared to Sept 2022s numbers, we are down 38.7% in the number of homes sold from the peak of the last three years. As we have seen interest rates go up we have seen a decrease in the amount of buyers shopping for homes in Hawaii. The first thing that comes to mind for a lot of people is what happened in 2008. Condos on the Hawaii Island have also fallen 11.4% in price while sales have plummeted 59% over the past 12 months. What's The Average Hawaii Real Estate Commission In 2021? As of Sept 2022, the median price of homes in Pearl City was $875,000, up 19.9 percent from 2021. And Hawaiis peace and serenity, beaches, parks, golf courses, hiking, Honolulu urban life, and culture are irresistible to buyers and tourists around the world. Looking back over the past 3 years, sales peaked at 56 april 2021. Is the Hawaii real estate market going to crash? More supply is coming eventually: The total number of homes under construction, including both single-family . It's when we see more expired listings than usual. While this would mark a fall in the current price growth of the market, it would still represent a strong growth by historical standards of the real estate market. Kailua is considered a competitive real estate market right now. *Resources: World Population Review, Redfin, Bank rate, Zillow, Bureau of Labor Statistics, KHON, Ycharts, FRED, ManageCasa, Hawaii Business, Upnest, Realtor.com, List with clever, 2022 New Silver Lending LLC | NMLS Company ID: 2154545 | All right reserved, Down Payment For A Rental Property - Overview of Requirements, 8 Best Real Estate Investing Podcasts In 2023. PRINT THIS ARTICLE OUT IF YOU NEED IT FOR LATER. Hawaiis real GDP growth is expected to increase 1.4% in both 2020 and 2021. The average months of supply is 5 months, up 3 year over year. Days on Market is something that you should really pay attention to in the here and now. With the rise of the pandemic in March 2020, home prices in Honolulu began their upward trajectory. Inflation-adjusted income in the state should rise only 1% during 2023, and then rise to 2% for the coming years. They. Houses on Kauai (+36.7%)and condos on Maui (+18.1%) still enjoy strong price growth. The Hawaii state government produced a report that suggests 19% growth in population by 2025. Median Sale Price All Home Types Median Sale Price A Slowdown In Housing Is Inevitable The pace of house price growth will slow because it cannot outpace income growth by such a wide margin for too long. In Sept 2022, 31 homes were sold, which is 46.6% down from Sept of 2021. By . Shoot me a text, give me a call or send me an email. In Sept of 2022, there were 38 homes sold in East Honolulu, a 42.3 % drop in sales from the same period in 2021. Between home prices hitting record highs and . Hawaii falls in the top 10 highest median household income brackets in the US, at $83,173. According to keepingcurrentmatters.com, a top real estate news outlet, in 4 out of the last 6 recessions homes appreciated in value. In 2022, the housing market's ups and downs were unpredictable, as a perfect storm of increasing mortgage rates, low housing inventory and fluctuating buyer demand caused a downturn across. The median days on the market was 73 days, up 10 year over year., The direction and pace at which home prices are changing are indicators of the strength of the housing market andwhether homes are becoming more or less affordable. Next came Phoenix, Las Vegas, Sacramento, and Tampa. The number of homes and condos which sold over asking price dropped between 68 and 73%. The leverage was in the seller's hands which led to buyers overpaying for homes and having to bring a lot more cash to the table to close the deal. The median days on the market was 73 days, up 10 year over year. As of Sept 2022, the median price for a home in the state was $780,125, down3.3% from Sept 2021. Again, because of the high income status of the local market, and the fact that most purchases are discretionary, higher rates all around will have less of an impact on the Hawaii market than other markets, perhaps. Homes are selling for $29,004 more than the annual average. Whether youre a single-working class individual or a family looking for that special spot to call home, if you have more questions about buying a house in Hawaii or the Hawaii real estate market in general dont hesitate to reach out. In the image below you will see Data directly from the Honolulu MLS showing you inventory from the last 3 years and then as of June 2022 over the course of the last 6 months. I was fortunate as a child to have the opportunity to move to Hawaii at a young age due to my parents being in the military. The median home prices in Hawaii increased a whopping 22% between 2020 and 2021. The phenomenon began thanks to local buyers looking for larger homes as people began staying home more, as well as mainland buyers moving to the islands to work remotely. Homes that sold above list price likely received multiple offers. A low or shrinking percentage of homes selling above list price suggests that the market is becoming less competitive. Oftentimes you will see data for Hawaii real estate that says homes are a million dollars and I doubt I can easily be misconstrued by many home buyers. Thats all conjecture however as US GDP, employment and inflation remain strong. Hawaii is my home! Hawaii offers home buyers an island lifestyle, coupled with the hustle and bustle of city life if they so choose. However, the Hawaii housing market is poised to continue being robust even with the current real estate market turmoil. According to research conducted by major real estate bodies, including Mashvisor and some analysts, the housing market will continue to grow in 2023. 2022 Clever Real Estate. This volatility has led to new trends and changes in the real estate market. Our team of over 20 real estate analysts from across the country research local markets and data to compile our "Best" and "Worst" rankings. In order to have a better grasp on the conditions of the market you should first understand a little bit of real estate terminology. Hawaii Housing Finance and Development Corp. For Immediate Release: January 16, 2020 HONOLULUA consortium of state and county housing agencies released the "2019 Hawaii Housing Planning Study." Included in the study are data on housing supply, demand, and estimates of housing units needed by levels of affordability. Limited supply translates to big rent increases. What will 2022 bring to each? What is the housing market like right now? The cost of living in Hilo is 28% lower than the overall cost of living in Hawaii. Sales fell 48% year over year yet prices are up 9.5%. Each year Americans, i.e., Californians search for houses for sale in Hawaii. The median home list price in Honolulu is $849,000, which is a 23.5% increase when compared to the same period last year. The pandemic has taken a toll on all economies, however Hawaii should bounce back as shut in Americans, Japanese, Canadians, and Europeans come of out of lockdown isolation. The average cost of homes in Honolulu Hawaii is just under $900,000. Step By Step: How To Buy A House In Hawaii From Top Local Real Estate Agents. As mentioned previously, the Hawaii Real Estate market is one of the most expensive in the nation. The housing price graphs below reflect the Hawaii house prices over the last few years, supplied by Hawaii Realtors and RedFin. Think of it as the 2-week mark being your point of leverage in the shifting market. The Kahului area beat the national average for median home price growth, topping 7.2% recently. As you can see in the image below with Hawaii real estate market data as of June 2022, The figure is there on the right and this average is the average sales price over the last 6 months for both single-family homes and condos/townhomes. Currently, it is a buyers market in Hawaii. Get your free online home valuation in only 2 minutes! The diverse Real Estate landscape of the Hawaiian islands makes it one of the most unique locations in the nation. Sales are not slowing down and demand keep growing in Pearl City. If youre buying multifamily property, these rules could pose a problem. This number means that homes in Oahu are nearly three times . Now that the market has begun to shift from a seller's market to a buyer's market, which well explain later plus talks of a recession in 2022; lets dive into Hawaii real estate 2022 market update. The median sales price in Hawaii in 2021 topped $828,125 and in 2022 it cumulatively topped just over $1million across the 4 main islands. Over the past 3 years, prices peaked in December 2021 at $892,500. The demand for real estate in the state is dipping, causing sales prices to fall and leaving properties on the market for longer than normal. Rental prices may be falling, however prices are often beyond the reach of many Hawaiians. In April 2021, median sales prices for single-family homes were: $928,000 on O'ahu. We talk to so many people about buying a house in Hawaii every single day and we absolutely love it. There will be less competition, and you may get a better deal. The median home price in Hilo is $318,000, which is less than half of the state median home price. Please note this will be the last Market Pulse published externally. Depending on your needs, criteria, lifestyle, goals and priorities, there are homes in Honolulu Hawaii that are less than $900,000. How will interest rates affect the housing Hawaii housing market? Housing inventory is declining across the state, and mortgage applications have dropped by 40% over the course of 2022. Rent prices overall though are not high compared to the period of 2014 to 2016 where rents actually hit $3000 per month for a 2 bedroom unit. Looking for a property management company in Hawaii? Some are just looking as they visit for their annual golf vacations. Year over year change in prices of houses on the Island of Oahu rose in November. As the saying goesmarry the house, date the rate.. Buying A House In Hawaii 7 Things You NEED To Know FIRST! Located just north of Honolulu international airport, this city of roughly 47,000 people is bustling with activity. Dont forget to share this article with your friends and family. Will Hawaii home prices decline in 2022 and 2023? The median household income is higher than the national median so people can absorb higher payments better. The median home price in Kailua-Kona was $685,000 in Sept 2022, up 19.1% from Sept 2021 and 5% from January 2022. The median home price in EWA Gentry is up 22.7% from Sept of 2021, while the number of homes sold was down 36.8% compared to the same period last year. Following a record-breaking 2021, local brokers forecast trends in Hawaii's residential real estate market for the new year. Waimalu has the Pearlridge Center, one of the biggest indoor malls in Hawaii and historical sites located nearby for tourists. In August 2022, Mililani Town home prices were down 2.9% compared to last year, selling for a median price of $685K. This chart below shows a strong trend were homeowners are receiving less than asked for. Please bookmark this page and well update when new data is released. New listings declined during the month by 26.2% for single-family homes and 18.6% for condos, YoY. This is not an ultimate factor of a shifting Hawaii Real Estate Market but can have an impact on the amount of buyers looking for homes and their qualification (their purchasing power). Comparing the median price year over year, single-family homes have gone up 10.98%, and condos have gone up $16.54% from the same period in 2021. However, home sales are expected to fall 6.8% compared to 2022's level. In light of this, people have been flocking to the beautiful islands of Hawaii for a long time. Homes are selling 11 days slower than the annual average. Much like the rest of the US, the housing market in Hawaii has been volatile since the start of the pandemic. If you're weighing your options for buying or selling a house, Clever can help!Our fully-licensed concierge team is standing by to answer questions and provide free, objective advice on getting the best outcome with your sale or purchase.Ready to get started?Give us a call at 1-833-2-CLEVER or enter your info below. Clevers Concierge Team can help you compare local agents and negotiate better rates. Wages were rising and that should support higher apartment rental prices in 2021. On average, homes in Mililani Town sell after 49 days on the market compared to 36 days last year. This was a decrease of 28.7% from last year, when 1,754 homes were sold in July. Pearl City is situated on the island of Oahu and along the north shore of Pearl Harbor. Single family sales report for November 2022. Currently under contract is completely remodeled single-family home in Honolulu priced at $2.295 million. There were 22 homes sold in August this year, up from 21 last year. The book value of Alexandria Real Estate Equities Inc.'s Puget Sound area development pipeline tops $800 million, and includes a 10-story lab research building in Seattle's South Lake Union area. 3 Find expert agents to help you buy your home. Some have expressed concern with the high interest rates and are playing the waiting game hoping they come back down. Honolulu continues to be one of the countrys hottest housing markets. The median days on the market is 59, which indicates a seller's market. It has been forecasted that mortgage rates will rise to 4 percent by the end of 2022 Windward Oahu has the Most Potential for Increase in Real Estate Value In the past year we saw the increase in home prices throughout Oahu, but especially Honolulu, Hawaii Kai, Aiea, Ewa Beach, Makakilo and even Kailua and Kaneohe. Want to save money when you buy or sell your home? Our expectation of 7.6 percent growth in 2022 is still considerably higher than the average pace of 5.4 from 2012 to 2019. Learn more about it in our guide to real estate investing. Property investors and b, review, rate and recommend our property management software, Best Cities to Invest in Rental Property 2023, How to Select Property Management Software. Overall, the US rental market is strong, yet financing and purchasing a home you can rent out will be a big challenge in the Aloha State. The homeownership rate is expected to grow slightly in 2022 to 65.8 percent. In the condo market, new listings have fallen sharply by 22% during 2022, and are down 44% vs November of 2021. Just a shift into a more normal Hawaii real estate market. There are currently 4,837 residential homes for sale in the United States. The feds just announced yet another .75% increase to the Federal Funds rate which means higher cost of borrowing in many areas. That 2 weeks benchmark it's typically when we start to see a price reduction. Hawaii Real Estate Market in 2022: Forecasts + Trends. Affordable housing in Hawaii can be harder to find but there are a few areas where first-time buyers or new investors can find housing at lower prices.