The unemployment rate for Hawaii is 4.1%, which means there is a total of 27,000 people unemployed in the state. However, the Hawaii housing market is poised to continue being robust even with the current real estate market turmoil. Hawaii economic report screen capture courtesy of Hawaii.gov Research and Economic Analysis. 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 steep rise in mortgage rates has shrunk affordability across the nation. Relatively speaking, this is a significant drop in sales which is a reflection of the impact of the pandemic and rising interest rates. If it makes sense for you to buy, go ahead and buy a home. The stats actually show builders have grown their construction permits in the 3rd quarter of 2021 but are not keeping up with demand. We had a full-blown recession along with a real estate housing crisis. With HAs economy looking better than most for 2023, we wouldnt expect housing prices to fall next year. 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. TREC:Info About Brokerage Services,Consumer Protection Notice. 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. The United States as a whole felt the boom of the sellers market and Hawaii was no different in that aspect. The housing sales stats chart above released by Hawaii Realtors show a marked difference between Honolulu/Oahu and the rest of the islands. So when we have more inventory on the market and less buyers in the market (shopping for homes) we have an increase in supply and a decrease in demand. The median sale price was down 3.2% in February 2023 Y-O-Y, but the number of homes sold dropped 45.7%. Depending on your needs, criteria, lifestyle, goals and priorities, there are homes in Honolulu Hawaii that are less than $900,000. Hawaii remains one of the worlds most rare and attractive housing markets. 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. While home sales have been falling over the last few months in Hawaii, prices have not dropped. This was a decrease of 28.7% from last year, when 1,754 homes were sold in July. Nationwide, 25% of homebuyers searched to move to a different metro area between Dec '22 - Feb '23. In August 2022, Mililani Town home prices were down 2.9% compared to last year, selling for a median price of $685K. 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. 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. Much like the rest of the US, the housing market in Hawaii has been volatile since the start of the pandemic. Oahu had a growth of 48% year over year in condominium sales. If the agent selling the home reduces the price that could be due to one or many factors. 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. 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 though the pandemic took its toll on sales numbers, as the pandemic is slowly disappearing the demand for homes will continue to grow. Each month, we compare locations in Hawaii based on different criteria. 364 homes sold in Honolulu in this time, and the median days on the market were 53, as of July 2022. Bottom line it really just depends on what you're looking for. Home prices in Hawaii were down 5.5% year-over-year in January. One thing you should never do as a home buyer is try to time the market. There were 1,251 home sales in Hawaii in July 2022. Location Data Jan 2023 Growth % YoY Hawaii $677,700 -5.5% However, the forecast for housing permits in December 2022, at 3,701, was well above the actual reported number of 2,188. More Homes Come on the Market More housing inventory will hit the market, so home prices will continue to rise but at a slower pace. As of Sept 2022, the median price for a home in the state was $780,125, down3.3% from Sept 2021. Over the past 3 years, prices peaked in December 2021 at $892,500. We talk to so many people about buying a house in Hawaii every single day and we absolutely love it. Clevers Concierge Team can help you compare local agents and negotiate better rates. 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. 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. Hawaii is made up of 8 major islands, with Oahu being the largest. It adds that by 2025, Hawaii Countys population will grow 29%, Maui Countys by 25%, and Kauai County will rise by 19%. If you are a home buyer, you may want to consider buying in the winter. Hawaii Real Estate Market in 2022: Forecasts + Trends. By visiting our site, you agree to our privacy policy regarding cookies, tracking statistics, etc. Hawaii - Real Changes For 2022 Something tangible that could get you more house for your money, here are Hawaii's new 2022 conforming loan limits: $937,507 - single-unit dwelling $1,200,420 - two-unit dwelling $1,450,935 - three-unit dwelling $1,803,195 - four-unit dwelling Bill 41? If international sales slows, wed wonder about where demand would come from in the years ahead. In Sept 2022, 31 homes were sold, which is 46.6% down from Sept of 2021. Honolulu continues to be one of the countrys hottest housing markets. As Of July 2022 this is what we are now seeing as the market begins to shift, not crash. 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 large metropolitan in Hawaii has been ranked as the third least-affordable market across the US with Oahus median home prices surpassing $1million in 2022. Waimalu is located 22 minutes away from Honolulu by car. 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. 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. Here is my complete housing market forecast for 2022 including data on population changes . In fact, we're just noticing a shift in the market and we'll talk about more indicators of a market shift. Hawaiis market continues to be one of the most expensive in the United States. 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. Hawaii Living How to Live Like A Local In Hawaii. Homes that sold above list price likely received multiple offers. However you want to get in touch with me, Ive got your back when moving to Hawaii! There were 25 homes sold in Sept 2022, the same number as Sept 2021. We offer this because we're confident you're going to love working with a Clever Partner Agent. New listings declined during the month by 26.2% for single-family homes and 18.6% for condos, YoY. According to research conducted by major real estate bodies, including Mashvisor and some analysts, the housing market will continue to grow in 2023. The median days on the market is 59, which indicates a seller's market. The condo median price decreased by four percent from last year to $492,500. Days on Market is something that you should really pay attention to in the here and now. 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. A high or growing percentage of homes selling above listprice indicates that the housing market is competitive and bidding wars are becoming more common. For sure, supply of single family houses, and even multifamily units is lacking. 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. Potential economic upsides in 2022 The housing market likely won't crash. In January 2023, 23.7% of homes in Hawaii sold below list price, down 18.3 points year. The Hawaii state government produced a report that suggests 19% growth in population by 2025. report on sfgate.com. In 2021, the median single-family home resale price reached 2.5 times the national median price. The direction and pace at which housing supply changes indicate whether the options for buyers are increasing or decreasing. The great quality of life that these islands offer residents is a major drawcard, and the housing market adds to this drawcard. This dataset excludes all rentals data. I now have spent more of my life here on the island of Oahu than anywhere else. Definitely a sellers market. The small town gives residents a relaxed way of life with surrounding natural beauty. 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. For December 2022, foreclosure starts were up. The second largest island is Hawaii, with a population of 186,738 and the third largest is Maui, with 166,738 people. Determining how much money you need to buy a house has always been daunting for first-time homebuyers, but 2022 feels like a new level of frustration. 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. 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. As of August 2022, mortgage rates for a 30-year fixed loan in Hawaii were 5.77%, and for a 15-year fixed loan were 4.78%. The spring and summer months are Hawaii's most active time of the year for home sales. Inventory was at an all-time low and demand was at an all-time high. 5% per month would put the market in correction mode. 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. In April 2022, the unemployment rate sky-rocketed to 22.4% in light of the pandemic, but the state has made a solid recovery on the employment front since then. The Hawaiian islands are a tourist mecca attracting over them 10 million tourists in a typical year. Located just north of Honolulu international airport, this city of roughly 47,000 people is bustling with activity. 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. Our concierge team will be in touch shortly to help.Remember, this service is 100% free and theres never any obligation. However, each city and town is different, which is why you should speak with a top real estate agent first to get a better grasp of the local trends in the state. Affordability Challenges Remain Home prices, rents, and mortgage rates are all expected to be on the rise in 2022. 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. Recent survey data shows that . 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. 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. According to the latest figures from Colliers International Hawaii, Oahu's office market shed more than a quarter-million square feet of occupancy over the past two years. 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. Find out how much you can save with Clever today! Visitor spending is estimated to increase 7.8 percent in 2023. So they may have a higher rate in the beginning but did not have to come out of pocket with an extra $50,000. The median home prices in Hawaii increased a whopping 22% between 2020 and 2021. The median price of a home in the United States is currently $677,700.. 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. Investment is likely to grow. The direction and pace at which home prices are changing are indicators of the strength of the housing market and. Homes that sold above list price likely received multiple offers. If youre buying multifamily property, these rules could pose a problem. Condominium sales report for November 2022. Whereas many areas of the country have seen huge peaks and valleys, the trend line in Hawaii is steadily up. The housing affordability index for Honolulu is currently sitting at 74.80, which is an 8.09% increase, year-on-year. Redfin reports the median house price in Hawaii reach $696,000 in February which is up 10.4% from 12 months go. Hawaiian lenders may prefer owner-occupied property financing, and those investing in rentals may face higher financing costs. Those buyers will not get that money back until the home appreciates giving them the money back in equity. Fannie Mae predicts that the medium home prices will see a rise of around 7.9% between the fourth quarter of 2021 and the fourth quarter of 2022. In 2022, foreclosures were down 34% compared to 2019, according to the Year-End 2022 U.S. Foreclosure Market Report published by ATTOM Data. Fortunately, the numbers show that most of Hawaii is not yet in a deep market correction.According to Corelogics report on metro areas with odds of having a steep home price decline, only Urban Honolulu has high odds of a price drop. Currently, it is a buyers market in Hawaii. Rents are forecasted to grow 7.1 percent and home prices 2.9 percent year-over-year. Median days on the market in Sept 2022 were 46, which is 4.5%% lower than Sept of 2021 and 8% less than Jan 2022. As the market continues to shift back to a normal Hawaii real estate market we love helping our home buyers find their perfect place. If you're thinking of buying or selling in Hawaii, these Hawaii housing predictions and stats can help you make an informed decision. 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. Waimalu is number 1 on the list of Best Suburb for Young Professionals in Hawaii. This volatility has led to new trends and changes in the real estate market. Hawaii still falls short of the top spot, which is taken by Maryland, with a median household income of $94,384. Screenshot courtesy of Hawaii Realtors. Click the button below or go ahead and shoot us a text by tapping this number: (808) 388-8710. PRINT THIS ARTICLE OUT IF YOU NEED IT FOR LATER. It is an area which is part of the city of Honolulu, the capital of the islands state. 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. 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. With Talks of a recession (by definition of) in July of 2022 as well as inflation combined with higher interest rates then what we saw with the historical lows this has affected buyer qualification and others being skeptical about purchasing at the right time. The Oahu housing market is continuing its strong pace even as interest rates rise. Meaning you're actively shopping for a home here in Hawaii and ready to make offers. The number of newly listed homes was 1,083 and down 30.8% year over year. Whereas a large portion of the nation is experiencing a slowdown in sales, Kailua is holding steady. Wailuku is situated in the beautiful island of Maui. 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. They can also indicate whether homes are lingering on the market or being sold faster than sellers are listing them. Closed sales fell by 40% and pending sales are down 32.6%. 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 Honolulu real estate market on the South Shore of Oahu, in particular, was reeling from the height of the pandemic. Will Hawaiis builders come to the rescue? Looking for a property management company in Hawaii? In light of this, people have been flocking to the beautiful islands of Hawaii for a long time. Residential real estate (RRE) markets are impacted by the COVID-19 pandemic . SEARCH HOMES IN FOR SALE IN HONOLULU HAWAII. Click the button below to begin your intuitive home search. How will interest rates affect the housing Hawaii housing market? The median sales price in East Honolulu is $1,424,000 in Sept of 2022 which is 28.5% higher than in Sept 2021. SAN JOSE, Calif., March 01, 2023 (GLOBE NEWSWIRE) -- California Water Service Group (NYSE: CWT) ( "Company" or "CWT") today announced net income attributable to CWT of $96 More supply is coming eventually: The total number of homes under construction, including both single-family . The median days on the market is 55, and its up 31% compared to last year. 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. Real estate trends in Hawaii | Sellers | Buyers | Investors | The best and worst of Hawaii | Hawaii resources. In real estate, Hawaii's office and housing markets have moved in opposite directions. The median price is 22% from Sept of 2021 and 23% from January 2022. Each year Americans, i.e., Californians search for houses for sale in Hawaii. It's the very foundation of your business helping you coordinate services, collect payments and manage your expenses. The top 5 states homebuyers searched to move to were Florida, Texas, Arizona, Tennessee, and South Carolina while California, New York, District Of Columbia, Illinois, and Massachusetts were the top 5 states homebuyers searched to move from. Interest in property here has been strong the past 12 years, with price appreciation in some areas of more than double over that time. 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. That makes for solid demand for rental units. Pearl City has a median household income of $91,122, one of the biggest in the state. Learn more about it in our guide to real estate investing. The housing market remains very competitive but slowing home value appreciation indicates that the frenzy from earlier in the year . 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% . This chart below shows a strong trend were homeowners are receiving less than asked for. When the lease is up, the land reverts to the lesser. The cost of living in Hilo is 28% lower than the overall cost of living in Hawaii. The Residential Real estate market-Global is expected a growth rate of more 9% during the forecast period (2022 -2027). 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. Hawaii falls in the top 10 highest median household income brackets in the US, at $83,173. Currently under contract is completely remodeled single-family home in Honolulu priced at $2.295 million. And that's just not true. but we can do our best to guide our clients into making the best decision possible with the current conditions. Talk of housing market crashes are rife across the country, based on continued rising interest rates and therefore mortgage rates. What will 2022 bring to each? This led to home sellers experiencing situations where they were receiving anywhere from five to 30 offers on their home that they had to sift through to figure out which one worked best for them. This answer will vary depending on the intended use for a house. That 2 weeks benchmark it's typically when we start to see a price reduction. Waimalu is just a few minutes away from Waikiki beach. 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. 2 Remember, median means half of all homes were listed for more than that and half were listed for less. Maui is a market of few listings and big price increases. 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. READ REDFIN'S, Do not sell or share my personal information. 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. 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. There are currently 4,837 residential homes for sale in the United States. Looking back at the last 3 years, sales peaked in June 2021 at 91 sales. Updated January 2023: By searching, you agree to the Terms of Use, andPrivacy Policy. Is the Hawaii real estate market going to crash?