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. With fee-simple, property buyers have complete ownership of the property, which includes the land and any improvements to the land in perpetuity. We offer this because we're confident you're going to love working with a Clever Partner Agent. Simplified Solutions to Master Business Complexity In the current situation with trained, experienced worker shortages, mid sized company's, Compare Property Management Software Hunting for stellar 5 star performance from an affordable property management solution? Additionally, many of the homes in Hawaii are 2nd homes and vacation homes, many of which are purchased with cash. Just a shift into a more normal Hawaii real estate market. What is the housing market like right now? September 17, 2021. Maui is a market of few listings and big price increases. In an interview on sfgate.com, Hawaii RealtorJulie Peters, an agent with Island Boutique Realty said she sold 5 properties unseen. Copyright: 2023 Redfin. We say the beginning because in a year's time, or when the market brings lower interest rates, that buyer can look into refinancing their home and possibly get that lower interest rate. As mortgage rates are at record highs in 20 years by 7.08%. 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. Start simplifying every aspect of your property management experience today using a platform designed to be user friendly with automated features to give you optimize your workload. Oahu Sales Activity Down from January 2022 Hawaii Housing Market Forecast: Demand to 2025 The Hawaii state government produced a report that suggests 19% growth in population by 2025. 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. Waimalu is number 1 on the list of Best Suburb for Young Professionals in Hawaii. Wailuku is situated in the beautiful island of Maui. However, buyers find a lot more competition, which may not be as favorable, especially in a hot market.Fall and winter are the slowest months of the year in home sales. 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. Hawaiis mortgage rates are currently higher than the national average. Whereas many areas of the country have seen huge peaks and valleys, the trend line in Hawaii is steadily up. 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. The direction and pace at which home prices are changing are indicators of the strength of the housing market and. We already detailed when inventory means above but what is it that you should be looking out for? 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. That's down 2.9 percentage points from last month . Step By Step: How To Buy A House In Hawaii From Top Local Real Estate Agents. However, buyer behavior may change instead. Gov. , a top real estate news outlet, in 4 out of the last 6 recessions homes appreciated in value. 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. New listings declined during the month by 26.2% for single-family homes and 18.6% for condos, YoY. Some have expressed concern with the high interest rates and are playing the waiting game hoping they come back down. 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. 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. If you're thinking of buying or selling in Hawaii, these Hawaii housing predictions and stats can help you make an informed decision. Hawaiian lenders may prefer owner-occupied property financing, and those investing in rentals may face higher financing costs. Hawaii is likely to fare better than many other areas of the country for a few reasons. Honolulu County and Maui County take the top spots of the richest areas in Hawaii. This comes in the wake of the changing real estate market which saw home prices rise drastically over the last year. The Hawaii real estate market is noticing an uptick in inventory while demand is slowing down. Similar to most housing markets in the US, Hawaii lacks housing supply which drives up prices. 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 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. Much like the rest of the nation, Hawaii's real estate market numbers reflect the impact of the pandemic and recent mortgage rate hikes. The population in Oahu is 953,207 as of 2022. Listing prices are down and homes are sitting on the market which can allow buyers to negotiate a great deal. Houses on Kauai (+36.7%)and condos on Maui (+18.1%) still enjoy strong price growth. So far, in 2022, 6,700 people have filed for jobless benefits. 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. 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. The number of homes and condos which sold over asking price dropped between 68 and 73%. Interest in property here has been strong the past 12 years, with price appreciation in some areas of more than double over that time. With HAs economy looking better than most for 2023, we wouldnt expect housing prices to fall next year. Condo sales similarly fell 43.4% and prices lowered by 4%. SEARCH HOMES IN FOR SALE IN HONOLULU HAWAII. Affordability is becoming an issue. For questions regarding the content, please reach out to press@zillow.com. Updated January 2023: By searching, you agree to the Terms of Use, andPrivacy Policy. Months of supply of houses are up 100% YoY. The average months of supply is 5 months, up 3 year over year. According to World Population Review, Hawaii is one of the most expensive states in the US to live. Inflation-adjusted income in the state should rise only 1% during 2023, and then rise to 2% for the coming years. 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. Because home prices have risen so much since the start of the pandemic, some may fear the housing market will. Again this could be because agents have the home overpriced, the home needs way too much work, and/or ultimately the market has decided that home is not worth that price. She cites that California, Oregon and Washington is where buyers are coming from. Nationwide, 25% of homebuyers searched to move to a different metro area between Dec '22 - Feb '23. The feds just announced yet another .75% increase to the Federal Funds rate which means higher cost of borrowing in many areas. In the condo market, new listings have fallen sharply by 22% during 2022, and are down 44% vs November of 2021. With Clever, you'll only pay 1.5% or $3K in listing fees. 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. Shifting into a buyer's market when you see a home that has been on the market for 10-14 days is usually when you will see a price reduction of some sort on that particular home. must have viewed at least 10 homes in a three month period. There are many indicators that point to a home price decline towards the end of 2022 and well into 2023. Things we learned about in grade school. The average price of a house in Hawaii rose 10.5% to $970,000. 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. Over the past 3 years, prices peaked in December 2021 at $892,500. Because of that now everybody correlates a recession with a real estate market crash. 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 median days on the market has increased from 57 in Sept 2022 to 64 in Sept 2022. There were 1,251 home sales in Hawaii in July 2022. Screenshot courtesy of HiCentral. The steep rise in mortgage rates has shrunk affordability across the nation. The Hawaii housing market is amid a major shift. Are there enough homes for sale to meet buyer demand? Homes that sold above list price likely received multiple offers. Over the last 2 years however, the housing market has been fluctuating along with rising and falling interest rates. 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. 364 homes sold in Honolulu in this time, and the median days on the market were 53, as of July 2022. All rights reserved. While home sales have been falling over the last few months in Hawaii, prices have not dropped. Potential economic upsides in 2022 The housing market likely won't crash. 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. Hawaii has some significant advantages over the rest of the country. There were 25 homes sold in Sept 2022, the same number as Sept 2021. Affordability Challenges Remain Home prices, rents, and mortgage rates are all expected to be on the rise in 2022. 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. They. Hawaiis economy is very dependent on US overall economic activity, tourism and upon Japans economy.