Over the last 3 years, homeowners saw their homes appreciate by 19.1% in 36 months which is moderate compared to many other states in the nation. In Hawaiis real estate market we are not currently predicting a full-on housing crisis. 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. We offer this because we're confident you're going to love working with a Clever Partner Agent. Redfin Hawaii homes sold above list price. 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. Are there enough homes for sale to meet buyer demand? After Octobers house price increase of 5% statewide, Novembers prices declined. For questions regarding the content, please reach out to press@zillow.com. Screenshot courtesy of Redfin.com. Hawaiis real GDP growth is expected to increase 1.4% in both 2020 and 2021. Condominium sales report for November 2022. Let's Talk about the difference between a seller's market and a buyer's market. Redfin Hawaii Home Prices. 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. The great quality of life that these islands offer residents is a major drawcard, and the housing market adds to this drawcard. The Residential Real estate market-Global is expected a growth rate of more 9% during the forecast period (2022 -2027). 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. 5 WORST Things About Living In Waikiki Hawaii! ManageCasas software is designed to manage commercial, residential, apartment, detached rental housing, student housing, mixed use retail properties, storage units, and marinas by integrating essential SaaS apps via cloud infrastructure and a secure rent payment gateway. This was a decrease of 28.7% from last year, when 1,754 homes were sold in July. of $677,700. The small town gives residents a relaxed way of life with surrounding natural beauty. The median home prices in Hawaii increased a whopping 22% between 2020 and 2021. List with the best agents in your area for just 1.5%. Gov. East Honolulu is a competitive area in terms of demand. Interest rates should not scare you from purchasing a home. A seller's market is what we just experienced and the real estate industry by nearly the last two years. While the median sales price overall for Hawaii was $717,200 in July 2022. Wailuku is one of the most affordable places to lives in Hawaii, with a median home price of $463,500. Sales of houses however grew substantially to 628 houses last month, although are still down 12.9% year over year. To make the buying process as easy as possible, work with a top real estate agent to help you find the perfect deal. Do not sell or share my personal information. Hawaiis piping hot real estate market is not expected to cool any time soon as a result of rising mortgage rates, according to real estate experts. If it makes sense for you to buy, go ahead and buy a home. All rights reserved. Affordability is becoming an issue. There are residency requirements to qualify for government-backed Fannie Mae or Freddie Mac loan programs. It's the software that scales, simplifies and delivers services (accounting, online rent payment, reports) and more. 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. If you're thinking of buying or selling in Hawaii, these Hawaii housing predictions and stats can help you make an informed decision. As in California, many owners are waiting for the housing market to return next late spring, supposing that inflation is beaten and mortgage rates will drop and prices will be down. 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. whether homes are becoming more or less affordable. 23 homes sold in Sept 2022, down 11.5% from Sept 2021. The number of homes and condos which sold over asking price dropped between 68 and 73%. The housing affordability index rating for Hawaii is 849.52. Homes that sold above list price likely received multiple offers. Except for the Island of Hawaii, house prices rose year over year by varying amounts and was up 17% statewide. 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. Over the past year, the average homeowner in Californiaa state with a $77,358 median household incomehave seen their home equity (the home's fair market value minus the mortgage balance) soar. Topics include an overview of the local economy and an analysis of the office, industrial, retail, investment and hotel markets. Now that we are noticing the market shift, and not crash, let's talk about what we're shifting into. Between home prices hitting record highs and . The housing sales stats chart above released by Hawaii Realtors show a marked difference between Honolulu/Oahu and the rest of the islands. Updated January 2023: By searching, you agree to the Terms of Use, andPrivacy Policy. 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. Explore the features of a truly modern software for property management. Sales are not slowing down and demand keep growing in Pearl City. When you get on a call with our team we will break everything down and dial-in your preferred communities, lifestyle, criteria of your home and so much more. Oahu had a growth of 48% year over year in condominium sales. Another positive characteristic of real estate values is that over the past 5 years homes have appreciated at an average of 5.8% a year, which is a modest and steady appreciation rate. Hawaii real estate is offered in two different types: fee simple and leasehold. Visitors from California and Japan slowed their spending, and dropped severely by visitors from elsewhere around the globe (-17%). See this forecast chart on economic indicators forward to 2021. Hawaii Realtors Monthly report on Hawaii, Kauai, Maui and Oahu home sales and prices. However, this represents a large deceleration from 2021's expected record house price growth of 17.3 percent. 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. *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 market is fueled by wealthy out-of-state buyers causing demand for second homes to outpace any other part of the US. The area is expected to perform even better than the national average next year, with a forecasted growth of 4.3%. 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. And amid rising interest rates and slowing migration from other provinces, housing starts are forecast to decline by 15.8% in 2022 and by 6.4% . 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. When fact there may not be anything wrong with it, the market is just shifted and it's bad timing for the seller. Maui is a market of few listings and big price increases. Hawaii is known for its higher cost of living and higher home values. ET READ REDFIN'S FAIR HOUSING POLICY. They. Our expectation of 7.6 percent growth in 2022 is still considerably higher than the average pace of 5.4 from 2012 to 2019. With rising interest rates almost a certainty from the FED, home prices will likely decline further in the months ahead. Because of the pandemic, 2022 stats are not available as yet. Over the past 3 years, prices peaked in December 2021 at $892,500. Year over year change in prices of houses on the Island of Oahu rose in November. Wages were rising and that should support higher apartment rental prices in 2021. Potential economic upsides in 2022 The housing market likely won't crash. 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. Clevers Concierge Team can help you compare local agents and find the best expert for your search. Find out how much you can save with Clever today! Median days on the market in Sept 2022 was 45 day, an 19% drop from Sept 2022. Ensure theyre using a modern cloud based property management solution. That's down 2.9 percentage points from last month . It adds that by 2025, Hawaii County's population will grow 29%, Maui County's by 25%, and Kauai County will rise by 19%. 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. The average months of supply is 5 months, up 3 year over year. How will interest rates affect the housing Hawaii housing market? The number of newly listed homes was 1,083 and down 30.8% year over year. Additionally, many of the homes in Hawaii are 2nd homes and vacation homes, many of which are purchased with cash. In November 2022, most homes spent 56 days on the real estate market18 days less than typical pre-2020 levels. MBA economists are expecting . Despite the limited inventory, turnaround is slow and the high markup certainly wont help this market heat up. Well take a look at this and more below. Still, in some areas, homes are selling for above list price. September 17, 2021. The Ultimate Guide to Hawaii Real Estate Taxes, 8 Definitive Steps to Buying a House in Hawaii, The 5 Most Affordable Places to Live In Hawaii, Top 5 Best Real Estate Investment Markets in Hawaii, The Ultimate Guide to Flipping Houses in Hawaii, A Beginner's Guide to Buying an Apartment Building, Hawaii Department of Commerce and Consumer Affairs Real Estate Branch, Hawaii's real estate license verification, Hawaii's real estate agent code of conduct, Home buying assistance programs in Hawaii. However, these trends are unlikely - at least in the coming year. On Wednesday, Zillow researchers released a revised forecast, predicting that U.S. home prices would rise 14.9% between March 2022 and March 2023. In an interview on sfgate.com, Hawaii RealtorJulie Peters, an agent with Island Boutique Realty said she sold 5 properties unseen. Investing in property in Hawaii could be a great option for some investors as the market shows no signs of crashing in the near future. In August 2022, Mililani Town home prices were down 2.9% compared to last year, selling for a median price of $685K. Eligible buyers get cash back with Clever! 6 Steps to Choose the Software You Need Finding, comparing, evaluating, trying out and selecting the correct property management software is the most important process ahead of you in 2023. This is decrease of 8 days, from last years number of days which was 62. Homes are selling 11 days slower than the annual average, Homes are selling for $29,004 more than the annual average, Save thousands on realtor fees with Clever, Best low commission real estate companies, Best we buy houses for cash companies, Are you a top realtor? The research report focuses on the latest trends that are anticipated to drive the market growth, in addition to the key opportunities, growth drivers and the challenges that are associated to the growth of the market during the forecast period. 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. Hawaiis tourist visitor numbers have recovered to pre-pandemic levels according to Hawaii.edu. The direction and pace at which housing supply changes indicate whether the options for buyers are increasing or decreasing. From January to June 2020, California residents bought $587.6 million worth of Hawaii property, making up 41% of total sales during that period coming from the U.S., according to Title Guaranty, which owns and maintains the largest real estate database in Hawaii. It's the very foundation of your business helping you coordinate services, collect payments and manage your expenses. Visitor spending is estimated to increase 7.8 percent in 2023. Were here when you need us! Enter your zip code to see if Clever has a partner agent in your area. Sales fell 48% year over year yet prices are up 9.5%. On average, homes in Mililani Town sell after 49 days on the market compared to 36 days last year. Each year Americans, i.e., Californians search for houses for sale in Hawaii. The downward trend is consistent with Octobers drop. Looking for a property management company in Hawaii? They said Hawaiis labor market is better than the US average, and inflation will ease below 4% in 2023, and further down to 2.5% by 2024. Download. As of early November 2022, the 30-year fixed rate mortgage is above 7% on average. Read on to find out our Hawaii housing market forecast for 2022. The median price of a home in the United States is currently $677,700. Talk of housing market crashes are rife across the country, based on continued rising interest rates and therefore mortgage rates. This dataset excludes all rentals data. The Hawaiian economy is strong, unemployment is low and wages have risen over 4%. 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. Honolulu Real Estate Market Prices, Trends & Forecasts 2022 Perhaps no other market across the country was hit harder by the introduction of the Coronavirus than that of Hawaii's housing sector. 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. 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. Average listing commission: 2.54%. Depending on your needs, criteria, lifestyle, goals and priorities, there are homes in Honolulu Hawaii that are less than $900,000. The Hawaii state government produced a report that suggests 19% growth in population by 2025. Screenshot courtesy of HiCentral. The prices are not consistent with the governments plan for lower inflation. 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. Houses on Kauai (+36.7%)and condos on Maui (+18.1%) still enjoy strong price growth. However, home sales are expected to fall 6.8% compared to 2022's level. $983,500 on Maui. Mortgage interest rates in Hawaii are now above the national average. 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. This data does not reflect actual moves. 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. This is an indication as to the level of affordability in the state, which is not one of the most affordable states in the country. Fastest price growth in Hawaii. Hawaii offers home buyers an island lifestyle, coupled with the hustle and bustle of city life if they so choose. Most people find the spring season the best time to buy a house. This again puts the ball in your court giving you the leverage as the home buyer if you're interested in a home that has expired. The median home list price in Honolulu is $849,000, which is a 23.5% increase when compared to the same period last year. Maui is a market of few listings and big price increases. The median home price in Waimalu is $446,800 which is lower than the state average, but still higher than the national average. Of all the major U.S. metros, Miami was the most searched for destination among homebuyers looking to relocate between Dec '22 - Feb '23. The United States as a whole felt the boom of the sellers market and Hawaii was no different in that aspect. Our team of over 20 real estate analysts from across the country research local markets and data to compile our "Best" and "Worst" rankings. 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. In January 2023, home prices in Hawaii were down 5.5% compared to last year, selling for a median priceof $677,700. Nationwide, 25% of homebuyers searched to move to a different metro area between Dec '22 - Feb '23. Located just north of Honolulu international airport, this city of roughly 47,000 people is bustling with activity. READ REDFIN'S, Do not sell or share my personal information. And so far this year, private building authorizations throughout all islands grew $764.8 million or 32.9% vs same period last year. 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. 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. The stats actually show builders have grown their construction permits in the 3rd quarter of 2021 but are not keeping up with demand. The 30-year fixed-rate mortgage is expected to average between 3.5% to 3.6% by the end of 2022. Historically speaking a recession does not equal a housing crisis and we're not predicting another round of 2008. The housing price graphs below reflect the Hawaii house prices over the last few years, supplied by Hawaii Realtors and RedFin. All indications point towards a more balanced housing market as society moves into the new year. Want to save money when you buy or sell your home? There were 25 homes sold in Sept 2022, the same number as Sept 2021. Next came Phoenix, Las Vegas, Sacramento, and Tampa. Check out these property management firms in Hawaii. Hawaii falls in the top 10 highest median household income brackets in the US, at $83,173. There was a 98.1% sale-to-list price, down 2.2 points year over year. Days on market up substantially at 43% 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). Oahu Sales Activity Down from January 2022 GDP was predicted to grow strongly through 2022. However, buyer behavior may change instead. Key Market Stats for the Hawaii Housing Market: As of the latest compiled housing report with data through Sept 2022. Eligible buyers get cash back after closing. Hawaii Living How to Live Like A Local In Hawaii. That makes for solid demand for rental units. Step By Step: How To Buy A House In Hawaii From Top Local Real Estate Agents. Even though the pandemic took its toll on sales numbers, as the pandemic is slowly disappearing the demand for homes will continue to grow. Theycan also indicate whether homes are lingering on the market or being sold faster than sellers are listing them. The diverse Real Estate landscape of the Hawaiian islands makes it one of the most unique locations in the nation. Kahului ranks amongst the top places in Hawaii for house appreciation growth, making it one of the hottest housing markets in the state. As of June 2022 and over the course of the last six months inventory was at 1.6 months. The direction and pace at which housing supply changes indicate whether the options for buyers are increasing or decreasing. Some are just looking as they visit for their annual golf vacations. price indicates that the housing market is competitive and bidding wars are becoming more common. PRINT THIS ARTICLE OUT IF YOU NEED IT FOR LATER. Tourism spending dropped 2% YoY in May, although spending by Canadians rose. Hawaii Key Takeaways Typical Home Values: $826,348 1-year Value Change: +9.2% (Data through January 31, 2023) Market Overview -- 1-year Market Forecast 0.995 Median sale to list ratio (December 31, 2022) 25.1% Percent of sales over list price (December 31, 2022) 51.6% Percent of sales under list price (December 31, 2022)