As the market continues to shift back to a normal Hawaii real estate market we love helping our home buyers find their perfect place. As mortgage rates are at record highs in 20 years by 7.08%. Affordability is becoming an issue. List with the best agents in your area for just 1.5%. Maui is a market of few listings and big price increases. Does that mean you'll be buying a house for $900,000 or no house at all? This month we're looking at levels of happiness data. Closed sales fell by 40% and pending sales are down 32.6%. Hawaii is made up of 8 major islands, with Oahu being the largest. Read on to find out our Hawaii housing market forecast for 2022. However, home sales are expected to fall 6.8% compared to 2022's level. Located just north of Honolulu international airport, this city of roughly 47,000 people is bustling with activity. Hawaii Real Estate Market in 2022: Forecasts + Trends. A steep incline from the 652.15 rating the state received in Q2 of 2020. 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. 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. Those buyers will not get that money back until the home appreciates giving them the money back in equity. A low or shrinking percentage of homes selling above list price suggests that the market is becoming less competitive.. Currently under contract is completely remodeled single-family home in Honolulu priced at $2.295 million. Buyers from California, Arizona, China, Germany, Russia, Japan, Canada, and other nations have competed for too little real estate resulting in bidding wars and ultrahigh prices. 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. Hawaii will welcome an estimated 9.8 million visitors in 2023, an increase of 6.0 percent from the 2022 level. Given inflation and rising rent prices in Hawaii, income rental property investors will find this state a tough market to be successful in. In a buyer's market the advantage (or leverage) is in the hands of the buyer. Pearl City is situated on the island of Oahu and along the north shore of Pearl Harbor. 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. The Residential Real estate market-Global is expected a growth rate of more 9% during the forecast period (2022 -2027). The median price of a home in Sept 2022 was $1,525,000, which is definitely on the upper region of home prices compared to the national median price. Kailua-Kona (Different than Kailua above) is located in the Big Island (Hawaii) which is the largest island in the nation, home of Kona coffe, the only coffe grown in the United States. Median Sale Price All Home Types Median Sale Price The stats actually show builders have grown their construction permits in the 3rd quarter of 2021 but are not keeping up with demand. , Homes that sold above list price likely received multiple offers. The Hawaii housing market is amid a major shift. Looking back over the past 3 years, sales peaked at 56 april 2021. And you never know which tourist will decide to buy property on the Hawaiian islands. Screenshot courtesy of Redfin.com, Redfin Hawaii Home Sales History Chart. Sales are not slowing down and demand keep growing in Pearl City. 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. More than 10 million tourists visit Hawaii during a typical year, but the islands are also home to more than 1.4 million residents who live there year round. 'Reduced competition.' 5 predictions for the housing market in 2022, from economists and real estate pros Updated: March 21, 2022 at 10:50 a.m. See more of Gord's posts on property management. Oahu Sales Activity Down from January 2022 MBA economists are expecting . According to World Population Review, Hawaii is one of the most expensive states in the US to live. Hilo, Honolulu, Kihei, Kailua. I now have spent more of my life here on the island of Oahu than anywhere else. 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? And Hawaiis peace and serenity, beaches, parks, golf courses, hiking, Honolulu urban life, and culture are irresistible to buyers and tourists around the world. And so far this year, private building authorizations throughout all islands grew $764.8 million or 32.9% vs same period last year. REDFIN and all REDFIN variants, TITLE FORWARD, WALK SCORE, and the R logos, are trademarks of Redfin Corporation, registered or pending in the USPTO. 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. 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. 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. There were only 16.9% of homes that had price drops, up from 9.0% of homes in January last year. The Hawaiian islands are a tourist mecca attracting over them 10 million tourists in a typical year. This month, we're looking at levels of happiness and ranking the best counties in the state. There were only 16.9% of homes that had price drops, up from 9.0% of homes in January last year. 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. Compared to Sept 2021, the median days on the market have gone up by 43.9%. According to research conducted by major real estate bodies, including Mashvisor and some analysts, the housing market will continue to grow in 2023. So You can see how drastically inventory went down which then created more competition when we were in the seller's market. Note: if youre interested in international real estate, please check out our posts on the Australian housing marketand Berlin and London UKrental property market and the UK housing market. Would you like to see homes for sale in Honolulu, HI? 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. While no one has a crystal ball I can tell the future we can look at historical data and current trends to accurately predict what we think may happen with the current real estate market. It adds that by 2025, Hawaii Countys population will grow 29%, Maui Countys by 25%, and Kauai County will rise by 19%. The market is fueled by wealthy out-of-state buyers causing demand for second homes to outpace any other part of the US. 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. In January 2023, home prices in Hawaii were down 5.5% compared to last year, selling for a median priceof $677,700. Hawaiian lenders may prefer owner-occupied property financing, and those investing in rentals may face higher financing costs. Is the Hawaii real estate market going to crash? Price reduction was just briefly mentioned above. What Should have been scary over the last two years was home buyers paying anywhere from $10,000 to $100,000+ of the asking price of the home. Well take a look at this and more below. Days on Market is something that you should really pay attention to in the here and now. 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. Download. CLICK ANY OF THE BUTTONS BELOW TO SHARE THIS ARTICLE WITH ANYONE YOU KNOW WHO MAY BE PCSING TO HAWAII AND NEED THIS INFORMATION. You have been added to the ManageCasa mailing list. More supply is coming eventually: The total number of homes under construction, including both single-family . Hawaii falls in the top 10 highest median household income brackets in the US, at $83,173. Home prices in Hawaii were down 5.5% year-over-year in January. The forecast for home values is predicted to rise 3.5% over the next twelve months nationally, and 4.9% for Honolulu, Hawaii's largest city. A high or growing percentage of homes selling above list. The median price of a home in the United States is currently $677,700. Kenneth Research recently added a report on Flexographic Ink market which is studied for the forecast period 2022-2031. After Octobers house price increase of 5% statewide, Novembers prices declined. If youre buying multifamily property, these rules could pose a problem. Hawaii economic report screen capture courtesy of Hawaii.gov Research and Economic Analysis. This data does not reflect actual moves. 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. Learn more about it in our guide to real estate investing. Looking for a Hawaii property management company? Much like the rest of the nation, Hawaii's real estate market numbers reflect the impact of the pandemic and recent mortgage rate hikes. Your software is vital. Additional Housing and Property Management Topics: See also:Property Management Software | Rental Housing | California Housing Market | Hawaii Property Management Companies | Property Management Update | Real Estate Accounting Software | Rental Property Software | Las Vegas Housing Market | Phoenix Housing Market | Atlanta Housing Market |Texas Real Estate |HausverwaltungSoftware| Property Management |California Property Management Companies | Australia Housing Market Forecast. However you want to get in touch with me, Ive got your back when moving to Hawaii! New listings declined during the month by 26.2% for single-family homes and 18.6% for condos, YoY. Except for the Island of Hawaii, house prices rose year over year by varying amounts and was up 17% statewide. Ensure theyre using a modern cloud based property management solution. However, buyer behavior may change instead. The condo median price decreased by four percent from last year to $492,500. Hawaii Living How to Live Like A Local In Hawaii. It shows a downtrend in price. The latest migration analysis is based on a sample of about two Still, in some areas, homes are selling for above list price.