For questions regarding the content, please reach out to press@zillow.com. Explore the features of a truly modern software for property management. Following a record-breaking 2021, local brokers forecast trends in Hawaii's residential real estate market for the new year. Real Estate markets are highly local, and even within the same state, there will be areas that are projected to be hit hard by the market shift, and others will fare better. Every real estate agent we spoke with agreed that 2022 is still likely to be a seller's market in the Bay Area. Each year Americans, i.e., Californians search for houses for sale in Hawaii. Housing inventory is declining across the state, and mortgage applications have dropped by 40% over the course of 2022. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Copyright 2021 | All Rights Reserved Privacy Policy | Terms & Conditions, Website and marketing proudly provided by ChannelJunkies.com. Is it still a place you might like to call home or perhaps a good city to buy a rental property? Please bookmark this page and well update when new data is released. If you are a home buyer, you may want to consider buying in the winter. Hawaii Realtors Monthly report on Hawaii, Kauai, Maui and Oahu home sales and prices. In an interview on sfgate.com, Hawaii RealtorJulie Peters, an agent with Island Boutique Realty said she sold 5 properties unseen. In order to have a better grasp on the conditions of the market you should first understand a little bit of real estate terminology. 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. This month, we're looking at levels of happiness and ranking the best counties in the state. Tourism spending dropped 2% YoY in May, although spending by Canadians rose. Buying A House In Hawaii 7 Things You NEED To Know FIRST! 2022 Clever Real Estate. You've likely done some comparison shopping for property management. The more focused it, Rental Property Management for Landlords When landlords reach the mid-market level of rental properties, they need to make decisions about software. The housing sales stats chart above released by Hawaii Realtors show a marked difference between Honolulu/Oahu and the rest of the islands. First, what does a housing market crash even mean? Houses on Kauai (+36.7%)and condos on Maui (+18.1%) still enjoy strong price growth. Hawaii Real Estate Market in 2022: Forecasts + Trends. A high or growing percentage of homes selling above list price indicates that the housing market is competitive and bidding wars are becoming more common. Affordability is becoming an issue. Buyers who buy leasehold properties may not qualify for 30 year mortgage rates. Key Market Stats for the Hawaii Housing Market: As of the latest compiled housing report with data through Sept 2022. The number of homes and condos which sold over asking price dropped between 68 and 73%. In January 2023, 23.7% of homes in Hawaii sold below list price, down 18.3 points yearover year. Theycan also indicate whether homes are lingering on the market or being sold faster than sellers are listing them. Currently under contract is completely remodeled single-family home in Honolulu priced at $2.295 million. In Sept 2022, there were 1,228 homes and condos sold in the state of Hawaii, a 31% decrease from Sept 2021, when there were 1,791 homes sold. In the condo market, new listings have fallen sharply by 22% during 2022, and are down 44% vs November of 2021. Median days on the market in Sept 2022 was 45 day, an 19% drop from Sept 2022. On average, homes in Mililani Town sell after 49 days on the market compared to 36 days last year. If the agent selling the home reduces the price that could be due to one or many factors. Step By Step: How To Buy A House In Hawaii From Top Local Real Estate Agents. Hawaii Living How to Live Like A Local In Hawaii. Lawrence Yun, Chief Economist and Senior Vice President of Research at the National Association of Realtors, predicts that the median home price in Atlanta will rise to $385,800, a minimal increase of only 0.3% from the previous year. The direction and pace at which home prices are changing are indicators of the strength of the housing market and whether homes are becoming more or less affordable. The housing affordability index for Honolulu is currently sitting at 74.80, which is an 8.09% increase, year-on-year. Similar to most housing markets in the US, Hawaii lacks housing supply which drives up prices. Through extensive research on housing markets, rental markets and trends, property management business strategy, and evolving PropTech solutions, Gord helps property managers choose the best software platform to manage rentals intelligently with an eye to profit and asset improvement. Redfin also says home inventory has dropped 22.3% from 12 months ago and that 39.8% of homes old above list price, which is 14.6% from last February. For those who are interested in the hottest housing markets in Hawaii, here are some of the markets creating the biggest buzz. The Islands still have the allure, however housing supply, regulations, price appreciation and high mortgage rates are collectively slowing the housing market. Additionally, many of the homes in Hawaii are 2nd homes and vacation homes, many of which are purchased with cash. There are many indicators that point to a home price decline towards the end of 2022 and well into 2023. The growth of purchases in the Aloha state in the last few years is astonishing yet housing supply will inevitably curtail sales and grow prices in 2021. If you are in the affluent economic demographic, you will do OK buying a house in Hawaii any time if you are looking at the purchase as a second home or vacation home.For the locals looking to move up or buy their first home, a local agent can be a great guide for you. Dec 7, 2022 COVID-19, Data, Housing Demand, Housing Supply, Market Outlook November 2022 Monthly Housing Market Trends Report The national inventory of active listings increased by. The Hawaii housing market is amid a major shift. Redfin reports the median house price in Hawaii reach $696,000 in February which is up 10.4% from 12 months go. Single family sales report for November 2022. The United States as a whole felt the boom of the sellers market and Hawaii was no different in that aspect. So You can see how drastically inventory went down which then created more competition when we were in the seller's market. The median price of a home in the United States is currently $677,700.. The average cost of homes in Honolulu Hawaii is just under $900,000. In Sept of 2022, there were 38 homes sold in East Honolulu, a 42.3 % drop in sales from the same period in 2021. Now that the market has shifted along with higher interest rates, Home buyers in Hawaii are not coming out of pocket with near as much cash if any at all. Because home prices have risen so much since the start of the pandemic, some may fear the housing market will. The median days on the market is 59, which indicates a seller's market. 3 Find expert agents to help you buy your home. San Francisco was the most searched for destination among homebuyers looking to leave, followed by New York, Los Angeles, Washington and Chicago. The median sales price of single-family homes across the 4 main islands tops at $977,625, and for Condos the Year-to-Date Median price is $640,125, according to the Hawaii Association of REALTORs. Gov. The population in Oahu is 953,207 as of 2022. Looking for a property management company in Hawaii? Talk of housing market crashes are rife across the country, based on continued rising interest rates and therefore mortgage rates. For sellers, if you have to sell in the next 12-24 months, you may want to consider doing it sooner than later, especially if you are in an area that may be considered overvalued and has a high potential for house prices to drop. Days on Market is something that you should really pay attention to in the here and now. Potential economic upsides in 2022 The housing market likely won't crash. In January 2023, home prices in Hawaii were down 5.5% compared to last year, selling for a median priceof $677,700. Join Clevers network. 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. *Resources for all data in this article can be found below. David Ige pointed this out in his State of the State speech in January, calling construction "a bright spot" and promising $1.1 billion in state capital improvement projects in 2022, another. Meaning you're actively shopping for a home here in Hawaii and ready to make offers. On average, the number of homes sold was down 47.9% year over year and there were 734 homes sold in January this year, down 1,410 homes sold in January last year. It is a very personal decision that involves careful analysis and consideration and a trusted local agent can be a great asset in the decision. Still, in some areas, homes are selling for above list price. In many areas, we have seen a month-over-month decline in house prices in the latter part of 2022. The median property price in Pearl City comes in at a tidy $733,300, however property values in this area have grown by 3.2% over the last year and are predicted to grow another 0.2% over the next year. The issue however is that rent prices are beyond the reach of most. Looking back at the last 3 years, sales peaked in June 2021 at 91 sales. Fortunately, the Hawaii economy is poised to be more resilient than other states due to its higher income earnings and purchases from out of state buyers who are well heeled. Maui is a market of few listings and big price increases. Even though the pandemic took its toll on sales numbers, as the pandemic is slowly disappearing the demand for homes will continue to grow. I now have spent more of my life here on the island of Oahu than anywhere else. The Hawaii state government produced a report that suggests 19% growth in population by 2025. And who knows how long I could take. Some have expressed concern with the high interest rates and are playing the waiting game hoping they come back down. All indications point towards a more balanced housing market as society moves into the new year. Eligible buyers get cash back with Clever! 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. 2022 has been a turbulent year for the housing market.In Jan 2022, y-o-y growth in HPI was over 18%, sellers were ruling the market, and buyers were paying much more than the list price to get their dream home. You have been added to the ManageCasa mailing list. HiCentral reports that properties available for sale in the $600,000 to $999,999 range grew 175% year-over-year and condos in the $400,000 to $2,000,000 price range grew 45% year over year. Let's Talk about the difference between a seller's market and a buyer's market. The homeownership rate is expected to grow slightly in 2022 to 65.8 percent. However you want to get in touch with me, Ive got your back when moving to Hawaii! It adds that by 2025, Hawaii County's population will grow 29%, Maui County's by 25%, and Kauai County will rise by 19%. Our expectation of 7.6 percent growth in 2022 is still considerably higher than the average pace of 5.4 from 2012 to 2019. The median sales price in Hawaii is $717,200 in July 2022, which was an increase of 7.5% from July 2021 home sales price. Relatively speaking, this is a significant drop in sales which is a reflection of the impact of the pandemic and rising interest rates. Ready to buy a home in Hawaii? SEARCH HOMES IN FOR SALE IN HONOLULU HAWAII. Now that we are noticing the market shift, and not crash, let's talk about what we're shifting into. And Hawaiis peace and serenity, beaches, parks, golf courses, hiking, Honolulu urban life, and culture are irresistible to buyers and tourists around the world. Pearl City is is one of the more affordable places to buy a home in the the islands of Hawaii. That doesn't leave much time to hem and haw over your home search. Copyright: 2023 Redfin. The downward trend is consistent with Octobers drop. Located just north of Honolulu international airport, this city of roughly 47,000 people is bustling with activity. However, buyer behavior may change instead. The housing market since 2020 has been the hottest that the state has ever seen. over year. The Hawaii Real Estate market has been BOOMING for the last couple of years. Days on market up substantially at 43% YoY. These are the counties that ranked the worst in the state. In simplest terms these really reference to old school economics when were talking about supply and demand. of $677,700. Although real estate has always been more expensive in Hawaii than most other states, the dip in demand makes it a good time to buy right now. The steep rise in mortgage rates has shrunk affordability across the nation. If you are using a screen reader, or having trouble reading this website, please call Redfin Customer Support for help at 1-844-759-7732. Do not sell or share my personal information. The cost of living in Hilo is 28% lower than the overall cost of living in Hawaii. Given inflation and rising rent prices in Hawaii, income rental property investors will find this state a tough market to be successful in. Screenshot courtesy of Hawaii Realtors. Screenshot courtesy of Redfin.com, Redfin Hawaii Home Sales History Chart. Over the last 2 years however, the housing market has been fluctuating along with rising and falling interest rates. Leasehold ownership on the other hand means the buyer does not own the land; instead, they have a right to use the land for a predetermined amount of time. Shoot me a text, give me a call or send me an email. In Sept 2022, 31 homes were sold, which is 46.6% down from Sept of 2021. 5 WORST Things About Living In Waikiki Hawaii! Your software is vital. In April 2021, median sales prices for single-family homes were: $928,000 on O'ahu. A low or shrinking percentage of homes selling above list price suggests that the market is becoming less competitive. Our team of over 20 real estate analysts from across the country research local markets and data to compile our "Best" and "Worst" rankings. 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! Pearl City has a median household income of $91,122, one of the biggest in the state. If youre buying multifamily property, these rules could pose a problem. This number means that homes in Oahu are nearly three times . 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. Wailuku is one of the most affordable places to lives in Hawaii, with a median home price of $463,500. If you're thinking of buying or selling in Hawaii, these Hawaii housing predictions and stats can help you make an informed decision. The median home list price in Honolulu is $849,000, which is a 23.5% increase when compared to the same period last year. Realtors Association of Maui reports that the median price of a home on Maui rose 2.5% to a record $1,025,000, up from $1,000,000 12 months ago. Read on to find out our Hawaii housing market forecast for 2022. When fact there may not be anything wrong with it, the market is just shifted and it's bad timing for the seller. So, residents can experience the buzz of Honolulu, without the high home prices. There are other factors but these are some of the main ones. Yes, Hawaii is a great state to invest in real estate, especially in cities like Honolulu where there's always a demand for housing and vacation rentals. To make the buying process as easy as possible, work with a top real estate agent to help you find the perfect deal. A high or growing percentage of homes selling above list. While the median sales price overall for Hawaii was $717,200 in July 2022. 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. 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. Although not necessarily tied to mortgage rates, an increas in rates in business loans, credit cards, etc. Both single-family homes and condos set new record median sales prices in the first quarter of 2022, with many selling for more than their original list price. The small town gives residents a relaxed way of life with surrounding natural beauty. , Homes that sold above list price likely received multiple offers. 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. Things we learned about in grade school. Redfin Hawaii Home Prices. It shows a downtrend in price. 5% per month would put the market in correction mode. 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. This answer will vary depending on the intended use for a house. Sales are not slowing down and demand keep growing in Pearl City. With fee-simple, property buyers have complete ownership of the property, which includes the land and any improvements to the land in perpetuity. To learn more, see our property management resources section, contact page, software features, software pricing, privacy and data protection policy, trust rating, along with our company mission and values. Homes that sold above list price likely received multiple offers. Condo sales similarly fell 43.4% and prices lowered by 4%. Factors such as overpricing the home, timing of the market, and not getting the traction they thought they might get on that particular home. , The direction and pace at which housing supply changes indicate whether the options for buyers are increasing or decreasing. Click the button below or go ahead and shoot us a text by tapping this number: (808) 388-8710. With Clever, you'll only pay 1.5% or $3K in listing fees. The direction and pace at which housing supply changes indicate whether the options for buyers are increasing or decreasing. 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. Homes stayed on the market for an average 18 days, up almost twice that of 12 months ago. 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. 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. Service providers are evolving with new digital software solutions that may make a big difference for you in 2022. Pearl City is situated on the island of Oahu and along the north shore of Pearl Harbor. The islands of Hawaii are some of the most attractive places to live in the United States, the area is also one of the most expensive Real Estate markets in the nation. When you reach out to us and are working with our team these are things we go through with you for each and every home when we talk about writing an offer that plays to your advantage. The number of homes pending sale also fell . The U.S. News Housing Market Index predicts more than 20,600 new permits for single-family home construction will be approved between January and May this year. However, the signs point towards a recovery from sales even with mortgage rates on the rise. When the lease is up, the land reverts to the lesser. The housing price graphs below reflect the Hawaii house prices over the last few years, supplied by Hawaii Realtors and RedFin. Hawaii is made up of 8 major islands, with Oahu being the largest. Average listing commission: 2.54%. Hilo is situated on the Big Island and is one of the most popular spots for volcanoes as its home to the Volcano National Park. In January 2023, there were 4,837 homes for sale in Hawaii, down 8.6% year over year. A low or shrinking percentage of homes selling above list price suggests that the market is becoming less competitive.. Closed sales fell by 40% and pending sales are down 32.6%. Waimalu is just a few minutes away from Waikiki beach. The typical home value in Honolulu, according to Zillow, is $875,952, and these values have increased by 12.9% over the last 12 months. Our team talks to so many people thinking about moving to Hawaii just like you and we absolutely love it! Would you like to see homes for sale in Honolulu, HI? Our property management software platform is a full-featured, all inclusive, property management application with a thorough, complete way to help manage rental property including the capacity to manage maintenance tasks, accept payments, conduct bookkeeping and accounting, screen tenants backgrounds, organize workflows, manage leases, conduct repairs, and store leases and documents securely. Hawaii has become a buyers market as the demand for real estate is declining, therefore sellers arent selling their houses as fast. A seller's market is what we just experienced and the real estate industry by nearly the last two years. Property managers and landlords are actively in pursuit of quality brand of user friendly software to enable their businesses to fully adopt digital technology and simplify the complexity of business. That makes for solid demand for rental units. February 17, 2022, 2:20 AM PST Heading into 2022, there was a wide consensus among real estate firms that the annual rate of home price growth which peaked at 20% in August 2021 would. That's down 2.9 percentage points from last month . Wailuku is situated in the beautiful island of Maui. In August 2022, Mililani Town home prices were down 2.9% compared to last year, selling for a median price of $685K. Hawaii real estate is offered in two different types: fee simple and leasehold. There are currently 4,837 residential homes for sale in the United States. But anytime you see a price reduction the factors above then give you leverage putting the ball in your court as a home buyer. Property investors and buyers from California, Arizona, UK, Australia, China, Germany, Russia, Japan, Canada, and other nations are the typical source for buyers according to sources. This comes after major mortgage rate hikes and pandemic-related effects hit the real estate market. Clevers Concierge Team can help you compare local agents and find the best expert for your search. They also pointed out the housing regulations in the state are crippling and some of the most restrictive, thus curtailing availability of homes and rental units for residents. Based on Redfin calculations of home data from MLS and/or public records. Hawaii real estate market forecast for sellers. Only 180 properties sold under $500,000 last month. Kahului ranks amongst the top places in Hawaii for house appreciation growth, making it one of the hottest housing markets in the state. The average price of a house in Hawaii rose 10.5% to $970,000. The Business Journals Select a City It adds that by 2025, Hawaii Countys population will grow 29%, Maui Countys by 25%, and Kauai County will rise by 19%. The Hawaii housing market in Oahu continues to be among the most expensive in the country with a median home price that hovers around $755,000. 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. 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. Currently, it is a buyers market in Hawaii. Rental demand is strong, while the Canada Mortgage and Housing Corp.'s 2022 spring housing market outlook suggests construction activity won't be enough to increase vacancy rates or reduce rents. However, the forecast for housing permits in December 2022, at 3,701, was well above the actual reported number of 2,188. dbedt.hawaii.gov reports that during the 3rd third quarter of 2021, private building authorizations in the state increased $94.2 million or 11.2 percent% with the third quarter of 2020. While home sales have been falling over the last few months in Hawaii, prices have not dropped. The average rent for a one bedroom apartment in Honolulu reached $1800 a month according to Zumper and rose 5% as well for 2 bedrooms. Due to its unique location and limited space where homes can be built, Hawaii remais as one of the worlds most attractive and rare housing markets. The housing affordability index rating for Hawaii is 849.52. There are residency requirements to qualify for government-backed Fannie Mae or Freddie Mac loan programs. READ REDFIN'S FAIR HOUSING POLICY. Well take a look at this and more below. *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. The feds just announced yet another .75% increase to the Federal Funds rate which means higher cost of borrowing in many areas. Listings (homes for sale in the market) expire all the time and that's not always due to a shifting market. Hawaii is known for its higher cost of living and higher home values. And we could very well be wrong. We already detailed when inventory means above but what is it that you should be looking out for? The second largest island is Hawaii, with a population of 186,738 and the third largest is Maui, with 166,738 people. Updated January 2023: By searching, you agree to the Terms of Use, andPrivacy Policy. The United States as a whole felt the boom of the sellers market and Hawaii was no different in that aspect. Although apartment rental prices have declined in the last 12 months, Hawaii is one of the least affordable states to rent or buy as a rental property investor. Some are just looking as they visit for their annual golf vacations. It's the software that scales, simplifies and delivers services (accounting, online rent payment, reports) and more. All Rights Reserved - Privacy Policy | Terms & Conditions| Consent to Contact Customer | TREC Consumer Protection Notice | Information About Brokerage Services, 0.05% home value increase month over month. Pending sales have been falling for 18 months and are down 41% during 2022. Hawaii has some significant advantages over the rest of the country. In January 2023, there were 4,837 homes for sale in Hawaii, down 8.6% year over year.The number of newly listed homes was 1,083 and down 30.8% year over year. $1.05 million on Kaua'i. O'ahu's median price was 14.7% higher than April 2020. 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). The Demand was high due to historically low interest rates and the affordability of homes of mass amounts of people ready to purchase a home. Enter your zip code to see if Clever has a partner agent in your area. Meaning you'll have more selection with more inventory in the market, less bidding wars, and sometimes even paying less and what the home is listed for. There were 1,251 home sales in Hawaii in July 2022. A slight increase that is not statistically significant to be considered a trend. Screenshot courtesy of Redfin.com. Hawaii Housing Market Real Estate By Gord Collins December 22, 2022 Hawaii Real Estate Market Hawaii remains one of the world's most rare and attractive housing markets. Even as interest rates are projected to go up, the demand for homes will still be . Real estate trends in Hawaii | Sellers | Buyers | Investors | The best and worst of Hawaii | Hawaii resources. The housing market remains very competitive but slowing home value appreciation indicates that the frenzy from earlier in the year . Bottom line it really just depends on what you're looking for. Rental prices may be falling, however prices are often beyond the reach of many Hawaiians. Mortgage interest rates in Hawaii are now above the national average. All rights reserved. Next came Phoenix, Las Vegas, Sacramento, and Tampa. If it makes sense for you to buy, go ahead and buy a home. In a seller's market there is a lot more competition for a little amount of homes available for sale. The Mortgage Bankers Association recently published their Mortgage Market Forecast for 2022, and the general consensus is that the cost of buying a home is expected to increase. However, home sales are expected to fall 6.8% compared to 2022's level. Mitigating that loss is a predicted recovery of the Japanese visitor market and surging construction in the public sector construction which may make a recession in the islands unlikely. but we can do our best to guide our clients into making the best decision possible with the current conditions. Despite the limited inventory, turnaround is slow and the high markup certainly wont help this market heat up. In Sept 2022, 24 homes were sold with a median price of $800,500. The Oahu single-family home median price fell by six percent from January 2022 to $986,000the second month-to-month decline and the first time the median was below $1M since July 2021. Home prices in Hawaii were down 5.5% year-over-year in January. 6 out of every 10 homes on Oahu sold for more than the list price and 5 out of every 10 condos sold for more than the list price.