Those buyers will not get that money back until the home appreciates giving them the money back in equity. Homes that sold above list price likely received multiple offers. The median home price in EWA Gentry is up 22.7% from Sept of 2021, while the number of homes sold was down 36.8% compared to the same period last year. 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? It adds that by 2025, Hawaii Countys population will grow 29%, Maui Countys by 25%, and Kauai County will rise by 19%. The median price for a Maui Condo is up almost 20% in 2022 and has reached an all time high of $856,000, up $131,000 vs one year ago. The price of condos has also continued to rise, with no signs of the Hawaii housing market slowing down. Japanese and other foreign buyers are deeply interested too, however the 2020 Covid pandemic threats and travel restrictions have reduced interest from foreign buyers. 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 price of a home in the United States is currently $677,700. The housing market since 2020 has been the hottest that the state has ever seen. As of Sept 2022, the median price for a home in the state was $780,125, down3.3% from Sept 2021. Copyright: 2023 Redfin. In light of this, people have been flocking to the beautiful islands of Hawaii for a long time. 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% . It's when we see more expired listings than usual. Clevers Concierge Team can help you compare local agents and find the best expert for your search. For the other three counties, those median prices are more than 30% higher than April 2020. In January 2023, 23.7% of homes in Hawaii sold below list price, down 18.3 points year. 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. Hawaiis real GDP growth is expected to increase 1.4% in both 2020 and 2021. Maui is a market of few listings and big price increases. 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. 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 Demand was high due to historically low interest rates and the affordability of homes of mass amounts of people ready to purchase a home. of $677,700. As 2022 winds down and we enter 2023, there are many predictions going around with respect to what will happen to the housing market in the next 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. Rental prices may be falling, however prices are often beyond the reach of many Hawaiians. 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). Affordability is becoming an issue. Days on Market is something that you should really pay attention to in the here and now. Our concierge team will be in touch shortly to help.Remember, this service is 100% free and theres never any obligation. 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. While the demand in some areas is expected to ease down, there will be new demand from new buyers and investors alike. It's the very foundation of your business helping you coordinate services, collect payments and manage your expenses. '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. The median home price in Kailua-Kona was $685,000 in Sept 2022, up 19.1% from Sept 2021 and 5% from January 2022. See this forecast chart on economic indicators forward to 2021. Dont forget to share this article with your friends and family. If Supply begins to tick back up and a demand goes down we expect to gradually get back to the 3 to 4 months of supply and what is it typically hey normal Hawaii real estate market. 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. The population in Oahu is 953,207 as of 2022. In January 2023, home prices in Hawaii were down 5.5% compared to last year, selling for a median price. 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. 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. 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. There was a 98.1% sale-to-list price, down 2.2 points year over year. The average months of supply is 5 months, up 3 year over year. These types of sales are not impacted as much by rising mortgage rates. What Is The Average Cost Of Homes In Honolulu Hawaii? Think of it as the 2-week mark being your point of leverage in the shifting market. There will be less competition, and you may get a better deal. 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. 5% per month would put the market in correction mode. It is clear that the recent steep rise in mortgage rates has curved sales activity and shrunk affordability, and the result has been a drop in home prices and sales. 2 Remember, median means half of all homes were listed for more than that and half were listed for less. 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. Here is my complete housing market forecast for 2022 including data on population changes . 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 the condo market, new listings have fallen sharply by 22% during 2022, and are down 44% vs November of 2021. Does that mean you'll be buying a house for $900,000 or no house at all? Shoot me a text, give me a call or send me an email. 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. Engineering Firms Ranked by 2022 Hawaii Engineering Billings Feb 13, 2023, 2:12 pm HST Local real estate veteran joins Carvill Sotheby's International Realty Feb 11, 2023, 6:03 pm HST. Hawaiis tourist visitor numbers have recovered to pre-pandemic levels according to Hawaii.edu. On Wednesday, Zillow researchers released a revised forecast, predicting that U.S. home prices would rise 14.9% between March 2022 and March 2023. 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. To make the buying process as easy as possible, work with a top real estate agent to help you find the perfect deal. A low or shrinking percentage of homes selling above list price suggests that the market is becoming less competitive. Are there enough homes for sale to meet buyer demand? 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. This month we're looking at levels of happiness data. At the same time, the number of homes sold fell 47.9% and the number of homes for sale fell 8.6%. As mortgage rates are at record highs in 20 years by 7.08%. Homes stayed on the market for an average 18 days, up almost twice that of 12 months ago. 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. Join Clevers network. Step By Step: How To Buy A House In Hawaii From Top Local Real Estate Agents. $480,000 on Hawai'i Island. 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. Clevers Concierge Team can help you compare local agents and negotiate better rates. South Carolina Housing Market 2023 Report, North Carolina Housing Market 2023 Report, Median single-home price $1,096,250 - up 20% from 2021, Median condo price $683,100 - up 25% from 2021, Existing single family home sales: 732 - down 21.1% from 2021, Existing condo sales: 902 - down 21.2% from 2021, Months supply of inventory: 3- unchanged from 2021. Building permits reflect future construction trends and volume, and Hawaiis year over year growth was at a brisk 62% over the last few years. The median home price in Waimalu is $446,800 which is lower than the state average, but still higher than the national average. price indicates that the housing market is competitive and bidding wars are becoming more common. There are many indicators that point to a home price decline towards the end of 2022 and well into 2023. Whereas a large portion of the nation is experiencing a slowdown in sales, Kailua is holding steady. Buyers finally have market power. All rights reserved. Hawaii Living How to Live Like A Local In Hawaii. The Islands of Hawaii, Kauai, Maui saw steep drops in sales of house and condos year to year, yet the island of Oahu enjoyed a surge of 9.76% in sales last month. Tourism spending dropped 2% YoY in May, although spending by Canadians rose. Our team of over 20 real estate analysts from across the country research local markets and data to compile our "Best" and "Worst" rankings. 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. Maui is a market of few listings and big price increases. In 2022, foreclosures were down 34% compared to 2019, according to the Year-End 2022 U.S. Foreclosure Market Report published by ATTOM Data. As of June 2022 and over the course of the last six months inventory was at 1.6 months. So You can see how drastically inventory went down which then created more competition when we were in the seller's market. Following a record-breaking 2021, local brokers forecast trends in Hawaii's residential real estate market for the new year. PRINT THIS ARTICLE OUT IF YOU NEED IT FOR LATER. Mortgage interest rates in Hawaii are now above the national average. 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. Next came Phoenix, Las Vegas, Sacramento, and Tampa. can also indicate whether homes are lingering on the market or being sold faster than sellers are listing them. 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. READ REDFIN'S, Do not sell or share my personal information. As Of July 2022 this is what we are now seeing as the market begins to shift, not crash. Please note this will be the last Market Pulse published externally. When we say inventory we're talking about homes available for sale on the market. List with the best agents in your area for just 1.5%. Interest in property here has been strong the past 12 years, with price appreciation in some areas of more than double over that time. Limited supply translates to big rent increases. Of all the major U.S. metros, Miami was the most searched for destination among homebuyers looking to relocate between Dec '22 - Feb '23. However you want to get in touch with me, Ive got your back when moving to Hawaii! This is decrease of 8 days, from last years number of days which was 62. This comes after major mortgage rate hikes and pandemic-related effects hit the real estate market. Some even come in under the listed price. Now that we are noticing the market shift, and not crash, let's talk about what we're shifting into. *Resources for all data in this article can be found below. SEARCH HOMES IN FOR SALE IN HONOLULU HAWAII. The diverse Real Estate landscape of the Hawaiian islands makes it one of the most unique locations in the nation. Hawaii Real Estate Market in 2022: Forecasts + Trends. While this may be the typical home value, the median sales price in Honolulu in July 2022 was $577,000. Hawaii will welcome an estimated 9.8 million visitors in 2023, an increase of 6.0 percent from the 2022 level. Kailua is considered a competitive real estate market right now. The small town gives residents a relaxed way of life with surrounding natural beauty. Hawaiian lenders may prefer owner-occupied property financing, and those investing in rentals may face higher financing costs. Sales fell 48% year over year yet prices are up 9.5%. In simplest terms these really reference to old school economics when were talking about supply and demand. Each month, we compare locations in Hawaii based on a different criteria. The average cost of homes in Honolulu Hawaii is just under $900,000. Gov. As we have seen interest rates go up we have seen a decrease in the amount of buyers shopping for homes in Hawaii. In the seller's market homes were barely staying actively listed for longer than a week before going under contract. Eligible buyers get cash back with Clever! The housing affordability index for Honolulu is currently sitting at 74.80, which is an 8.09% increase, year-on-year. 1 But most experts report on the median, which saw an annual increase of 8.1% to $400,000. Because of that now everybody correlates a recession with a real estate market crash. 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. In January 2023, 23.7% of homes in Hawaii sold below list price, down 18.3 points yearover year. Closed sales fell by 40% and pending sales are down 32.6%. Still, in some areas, homes are selling for above list price. Things we learned about in grade school. The unemployment rate for Hawaii is 4.1%, which means there is a total of 27,000 people unemployed in the state. There are currently 4,837 residential homes for sale in the United States.. 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. The second largest island is Hawaii, with a population of 186,738 and the third largest is Maui, with 166,738 people. Click the button below to begin your intuitive home search. Screenshot courtesy of Hawaii Realtors. 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. In 2020, Hawaii will likely continue as the least affordable housing market in the country, and as youve learned condo prices in some Hawaiian counties are rocketing. Condo sales similarly fell 43.4% and prices lowered by 4%. In a seller's market there is a lot more competition for a little amount of homes available for sale. The great quality of life that these islands offer residents is a major drawcard, and the housing market adds to this drawcard. We had a full-blown recession along with a real estate housing crisis. Visitors from California and Japan slowed their spending, and dropped severely by visitors from elsewhere around the globe (-17%). Going the other way there are plenty of homes that are worth more than $900,000. Honolulu County and Maui County take the top spots of the richest areas in Hawaii. Hilo offers residents a city lifestyle without the hustle and bustle, or the high city prices. Going forward, home price growth cools, but it has remained hotter for longer than originally anticipated leading to an upwardly revised projection of 6.6% home price growth for 2022 Home sales. 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. What is the best time to buy a house in Hawaii? Wailuku is situated in the beautiful island of Maui. Definitely a sellers market. However, the forecast for housing permits in December 2022, at 3,701, was well above the actual reported number of 2,188. Sales of houses however grew substantially to 628 houses last month, although are still down 12.9% year over year. Oahu had a growth of 48% year over year in condominium sales. While inventory levels are lower than usual here, the city continues to bustle and the real estate market thrives. Sales are not slowing down and demand keep growing in Pearl City. Even as interest rates are projected to go up, the demand for homes will still be . Given inflation and rising rent prices in Hawaii, income rental property investors will find this state a tough market to be successful in. And thats how the word about Hawaii real estate has always spread. 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. Click the button below or go ahead and shoot us a text by tapping this number: (808) 388-8710. Hawaii has some significant advantages over the rest of the country. Listing prices are down and homes are sitting on the market which can allow buyers to negotiate a great deal. Save my name, email, and website in this browser for the next time I comment. Whats next for the Hawaii housing market forecast for 2022? The market is fueled by wealthy out-of-state buyers causing demand for second homes to outpace any other part of the US. Check out these property management firms in Hawaii. 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 prices are not consistent with the governments plan for lower inflation. The forecast gives prospective buyers little to cheer as the new year looms . You'll lose every time. The area is expected to perform even better than the national average next year, with a forecasted growth of 4.3%. And Hawaiis peace and serenity, beaches, parks, golf courses, hiking, Honolulu urban life, and culture are irresistible to buyers and tourists around the world. We offer this because we're confident you're going to love working with a Clever Partner Agent. Comparing the median price year over year, single-family homes have gone up 10.98%, and condos have gone up $16.54% from the same period in 2021. Were here when you need us! Kailua is located on what locals know as the Winward side of the island of Oahu, and it is considered one of the most affluent communities to live in the island . A buyer's market is what we are now shifting into as of July 2022. the exact opposite of what was just described above. Factors such as overpricing the home, timing of the market, and not getting the traction they thought they might get on that particular home. 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? 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. Each month, we compare locations in Hawaii based on different criteria. In Hawaiis real estate market we are not currently predicting a full-on housing crisis. 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. 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. Inventory was at an all-time low and demand was at an all-time high. Some have expressed concern with the high interest rates and are playing the waiting game hoping they come back down. Even though the pandemic took its toll on sales numbers, as the pandemic is slowly disappearing the demand for homes will continue to grow. Kahului ranks amongst the top places in Hawaii for house appreciation growth, making it one of the hottest housing markets in the state. In April 2021, median sales prices for single-family homes were: $928,000 on O'ahu. Inflation-adjusted income in the state should rise only 1% during 2023, and then rise to 2% for the coming years. Stats show a strong increase in visitors arriving via the airports and projections forward are for steady, strong growth. A seller's market is what we just experienced and the real estate industry by nearly the last two years. Pending sales have been falling for 18 months and are down 41% during 2022. That doesn't leave much time to hem and haw over your home search. The median price of a home in the United States is currently $677,700.. For sure, supply of single family houses, and even multifamily units is lacking. Condominium sales report for November 2022. Wailuku is one of the most affordable places to lives in Hawaii, with a median home price of $463,500. Pearl City is situated on the island of Oahu and along the north shore of Pearl Harbor. It is an area which is part of the city of Honolulu, the capital of the islands state. We appreciate you reading these updates each week! Hawaii economic report screen capture courtesy of Hawaii.gov Research and Economic Analysis. 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. TREC:Info About Brokerage Services,Consumer Protection Notice. The median days on the market is 55, and its up 31% compared to last year. And so far this year, private building authorizations throughout all islands grew $764.8 million or 32.9% vs same period last year. 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. Hawaii is a competitive, low-inventory housing market. With challenges for new supply so high, and sales prices on the rise to new records, its obvious buyers and investors feel the value in Hawaii real estate is good. 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. Location Data Jan 2023 Growth % YoY Hawaii $677,700 -5.5% 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 days on the market has increased from 57 in Sept 2022 to 64 in Sept 2022. Theycan also indicate whether homes are lingering on the market or being sold faster than sellers are listing them. Located just north of Honolulu international airport, this city of roughly 47,000 people is bustling with activity. Redfin Hawaii Home Prices. Because of the pandemic, 2022 stats are not available as yet. The Hawaii Kai-area three-bedroom property enjoys views of Diamond Head, the Pacific,. 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. 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. Waimalu is number 1 on the list of Best Suburb for Young Professionals in Hawaii. Wages were rising and that should support higher apartment rental prices in 2021. Hawaii has become a buyers market as the demand for real estate is declining, therefore sellers arent selling their houses as fast. 364 homes sold in Honolulu in this time, and the median days on the market were 53, as of July 2022. but we can do our best to guide our clients into making the best decision possible with the current conditions. Screenshot courtesy of Redfin.com, Redfin Hawaii Home Sales History Chart. Hawaii remains one of the worlds most rare and attractive housing markets. As mentioned previously, the Hawaii Real Estate market is one of the most expensive in the nation. The Oahu housing market is continuing its strong pace even as interest rates rise. Would you like to see homes for sale in Honolulu, HI? If you are a home buyer, you may want to consider buying in the winter. Additionally, many of the homes in Hawaii are 2nd homes and vacation homes, many of which are purchased with cash. 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. Screenshot courtesy of Redfin.com. However, it appears homeowners are withdrawing properties from the Hawaii market and are perhaps unwilling to sell for what buyers are willing to pay. 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. 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. Median days on the market in Sept 2022 was 45 day, an 19% drop from Sept 2022. The Hawaii real estate market is noticing an uptick in inventory while demand is slowing down. Wondering if the Hawaii Housing Market Crash has already started? There are other factors but these are some of the main ones. The Honolulu real estate market on the South Shore of Oahu, in particular, was reeling from the height of the pandemic. Find out how much you can save with Clever today! The average price of a house in Hawaii rose 10.5% to $970,000. Get your free online home valuation in only 2 minutes! By visiting our site, you agree to our privacy policy regarding cookies, tracking statistics, etc. Sellers are reducing prices as homes stay on the market longer. The median home prices in Hawaii increased a whopping 22% between 2020 and 2021. September 17, 2021. Hawaiis mortgage rates are currently higher than the national average. 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. 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! that would mean there was no inventory. Now that we have covered the difference between a seller's market in a buyer's market and what that means to you as a home buyer let's talk about some indicators of the market shifting and things that you can start to look out for as you begin searching for homes in Hawaii. must have viewed at least 10 homes in a three month period. That 2 weeks benchmark it's typically when we start to see a price reduction. The spring and summer months are Hawaii's most active time of the year for home sales. Relatively speaking, this is a significant drop in sales which is a reflection of the impact of the pandemic and rising interest rates. However, these trends are unlikely - at least in the coming year. $983,500 on Maui. Most people find the spring season the best time to buy a house. The latest migration analysis is based on a sample of about two According to World Population Review, Hawaii is one of the most expensive states in the US to live. 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. The cost of living in Hilo is 28% lower than the overall cost of living in Hawaii. In many areas, we have seen a month-over-month decline in house prices in the latter part of 2022. , The direction and pace at which housing supply changes indicate whether the options for buyers are increasing or decreasing. They forecast that housing demand by county is 25,847 units for Honolulu, 19,610 for Hawaii, 13,949 for Maui, and 5,287 for Kauai during the 2015-2025 period. Hilo, Honolulu, Kihei, Kailua. Hawaii Housing Finance and Development Corp. For Immediate Release: January 16, 2020 HONOLULUA consortium of state and county housing agencies released the "2019 Hawaii Housing Planning Study." Included in the study are data on housing supply, demand, and estimates of housing units needed by levels of affordability.