Our team of over 20 real estate analysts from across the country research local markets and data to compile our "Best" and "Worst" rankings. A slight increase that is not statistically significant to be considered a trend. 1 But most experts report on the median, which saw an annual increase of 8.1% to $400,000. In January 2023, there were 4,837 homes for sale in Hawaii, down 8.6% year over year. In fact, we're just noticing a shift in the market and we'll talk about more indicators of a market shift. Find out how much you can save with Clever today! 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. In January 2023, 23.7% of homes in Hawaii sold below list price, down 18.3 points year. They can also indicate whether homes are lingering on the market or being sold faster than sellers are listing them. A seller's market is what we just experienced and the real estate industry by nearly the last two years. 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. Do not sell or share my personal information. The population in Oahu is 953,207 as of 2022. In order to have a better grasp on the conditions of the market you should first understand a little bit of real estate terminology. 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. REDFIN and all REDFIN variants, TITLE FORWARD, WALK SCORE, and the R logos, are trademarks of Redfin Corporation, registered or pending in the USPTO. Because of that now everybody correlates a recession with a real estate market crash. Redfin Hawaii homes sold above list price. First, what does a housing market crash even mean? When fact there may not be anything wrong with it, the market is just shifted and it's bad timing for the seller. Hawaii is made up of 8 major islands, with Oahu being the largest. Oahu Sales Activity Down from January 2022 On average, Clever sellers save $7,000 on commission!Our agent matching service is 100% free with zero obligation. By visiting our site, you agree to our privacy policy regarding cookies, tracking statistics, etc. Well take a look at this and more below. Each month, we compare locations in Hawaii based on different criteria. Because home prices have risen so much since the start of the pandemic, some may fear the housing market will. San Francisco was the most searched for destination among homebuyers looking to leave, followed by New York, Los Angeles, Washington and Chicago. Check out these property management firms in Hawaii. Updated January 2023: By searching, you agree to the Terms of Use, andPrivacy Policy. 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. Depending on your needs, criteria, lifestyle, goals and priorities, there are homes in Honolulu Hawaii that are less than $900,000. However, the Hawaii housing market is poised to continue being robust even with the current real estate market turmoil. 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. , a top real estate news outlet, in 4 out of the last 6 recessions homes appreciated in value. This is not necessarily indicative of a slowing market trend but rather a natural occurrence when you have a statistically small number of transaction in the area. The great quality of life that these islands offer residents is a major drawcard, and the housing market adds to this drawcard. 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% . Similar to most housing markets in the US, Hawaii lacks housing supply which drives up prices. East Honolulu is a competitive area in terms of demand. 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. 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. Eligible buyers get cash back with Clever! 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. Screenshot courtesy of Redfin.com. 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 sale price was down 3.2% in February 2023 Y-O-Y, but the number of homes sold dropped 45.7%. Topics include an overview of the local economy and an analysis of the office, industrial, retail, investment and hotel markets. price indicates that the housing market is competitive and bidding wars are becoming more common. However, the signs point towards a recovery from sales even with mortgage rates on the rise. For those who are interested in the hottest housing markets in Hawaii, here are some of the markets creating the biggest buzz. While the median sales price overall for Hawaii was $717,200 in July 2022. The number of homes pending sale also fell . ET 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. Will Hawaii home prices decline in 2022 and 2023? The Aloha State is known for its iconic beaches, lush rainforests, and delicious local foods like sweet shaved ice, poke, and Spam musubi. It adds that by 2025, Hawaii Countys population will grow 29%, Maui Countys by 25%, and Kauai County will rise by 19%. There were 22 homes sold in August this year, up from 21 last year. A high or growing percentage of homes selling above listprice indicates that the housing market is competitive and bidding wars are becoming more common. Gord is ManageCasa's content researcher and writer capturing the imagination of investors, landlords, and property management pros. Would you like to see homes for sale in Honolulu, HI? Much like the rest of the US, the housing market in Hawaii has been volatile since the start of the pandemic. Closed sales fell by 40% and pending sales are down 32.6%. Everything you need in just one simple to use application. 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. that would mean there was no inventory. What Is The Average Cost Of Homes In Honolulu Hawaii? This answer will vary depending on the intended use for a house. Please note this will be the last Market Pulse published externally. Hawaii falls in the top 10 highest median household income brackets in the US, at $83,173. Homes that sold above list price likely received multiple offers. Whereas a large portion of the nation is experiencing a slowdown in sales, Kailua is holding steady. Were here when you need us! 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. now that we are shifting into the buyer's market, here are some of your key indicators that are going to give you leverage when writing your offer. Screenshot courtesy of Redfin.com. , Homes that sold above list price likely received multiple offers. One thing you should never do as a home buyer is try to time the market. 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. However you want to get in touch with me, Ive got your back when moving to Hawaii! And we could very well be wrong. 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. The Honolulu real estate market on the South Shore of Oahu, in particular, was reeling from the height of the pandemic. At the close of Q3 2021, the median interest rate was 2.8%. 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 . What's The Average Hawaii Real Estate Commission In 2021? 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. Currently, it is a buyers market in Hawaii. Currently under contract is completely remodeled single-family home in Honolulu priced at $2.295 million. Average listing commission: 2.54%. However, buyer behavior may change instead. On Wednesday, Zillow researchers released a revised forecast, predicting that U.S. home prices would rise 14.9% between March 2022 and March 2023. 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. Hawaii will welcome an estimated 9.8 million visitors in 2023, an increase of 6.0 percent from the 2022 level. The median home prices in Hawaii increased a whopping 22% between 2020 and 2021. The median price is 22% from Sept of 2021 and 23% from January 2022. Homes are selling 11 days slower than the annual average. Limited supply translates to big rent increases. Service providers are evolving with new digital software solutions that may make a big difference for you in 2022. Hawaiis real GDP growth is expected to increase 1.4% in both 2020 and 2021. Hawaii has some significant advantages over the rest of the country. New listings declined during the month by 26.2% for single-family homes and 18.6% for condos, YoY. This comes after major mortgage rate hikes and pandemic-related effects hit the real estate market. Bottom line it really just depends on what you're looking 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. The median sales price in East Honolulu is $1,424,000 in Sept of 2022 which is 28.5% higher than in Sept 2021. To be included in this dataset, a Redfin.com user Though Hawaii is known for its eight major volcanic islands, the archipelago actually spans a total of 137 islands in all. 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. Hawaii Real Estate Market in 2022: Forecasts + Trends. Definitely, review, rate and recommend our property management software. Median home prices in Kahului are $642,500, and the median household income grew by 7.38% over the last year. The median price of a home in the United States is currently $677,700. Condos on the Hawaii Island have also fallen 11.4% in price while sales have plummeted 59% over the past 12 months. 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. She cites that California, Oregon and Washington is where buyers are coming from. 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. 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. With Clever, you'll only pay 1.5% or $3K in listing fees. The Residential Real estate market-Global is expected a growth rate of more 9% during the forecast period (2022 -2027). However, the average yearly household income of $83,173 in Hawaii is also above the national average, which to some degree, balances out the high prices. 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. Housing inventory is declining across the state, and mortgage applications have dropped by 40% over the course of 2022. Bond-tapering and Fed rate hikes started on March 16, 2022. Honolulu continues to be one of the countrys hottest housing markets. However, the forecast for housing permits in December 2022, at 3,701, was well above the actual reported number of 2,188. Some even come in under the listed price. Inflation-adjusted income in the state should rise only 1% during 2023, and then rise to 2% for the coming years. Buyers finally have market power. The issue however is that rent prices are beyond the reach of most. The population size in Hawaii is 1.4million. 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. What is the best time to buy a house in Hawaii? 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. 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. , The direction and pace at which housing supply changes indicate whether the options for buyers are increasing or decreasing. TREC:Info About Brokerage Services,Consumer Protection Notice. After Octobers house price increase of 5% statewide, Novembers prices declined. Your software is vital. In Hawaiis real estate market we are not currently predicting a full-on housing crisis. The housing price graphs below reflect the Hawaii house prices over the last few years, supplied by Hawaii Realtors and RedFin. 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. Visitor arrivals are projected to increase to 10.1 million in 2024, 10.4 million in 2025, and 10.5 million in 2026. Please bookmark this page and well update when new data is released. 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 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. 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. All rights reserved. Rental prices may be falling, however prices are often beyond the reach of many Hawaiians. However, home sales are expected to fall 6.8% compared to 2022's level. You have been added to the ManageCasa mailing list. Price reduction was just briefly mentioned above. Another factor comes from lending rates affected by Hawaiis unique real estate laws. Compared to Sept 2021, the median days on the market have gone up by 43.9%. Much like the rest of the nation, Hawaii's real estate market numbers reflect the impact of the pandemic and recent mortgage rate hikes. As we have seen interest rates go up we have seen a decrease in the amount of buyers shopping for homes in Hawaii. The median sales price in Hawaii in 2021 topped $828,125 and in 2022 it cumulatively topped just over $1million across the 4 main islands. So they may have a higher rate in the beginning but did not have to come out of pocket with an extra $50,000. Based on Redfin calculations of home data from MLS and/or public records. The condo median price decreased by four percent from last year to $492,500. It's the software that scales, simplifies and delivers services (accounting, online rent payment, reports) and more. This number means that homes in Oahu are nearly three times . As of August 2022, Hawaii's 30-year fixed mortgage rate was 5.77%, while the 15-year fixed rate was 4.78%.Hawaii's cost of living and real estate value is greater than the national average. The median home prices in Hawaii increased a whopping 22% between 2020 and 2021. Every real estate agent we spoke with agreed that 2022 is still likely to be a seller's market in the Bay Area. over year. Investment is likely to grow. Eligible buyers get cash back after closing. 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. The first thing that comes to mind for a lot of people is what happened in 2008. And that's just not true. However, on the plus side, the state has one of the lowest poverty rates. Hawaii Realtors Monthly report on Hawaii, Kauai, Maui and Oahu home sales and prices. 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? See the listing to sales ratio below. Clevers Concierge Team can help you compare local agents and negotiate better rates. As a buyer working with our team when we see a price reduction we attempt to see why the price reduction was made and any other motivating factors for the seller. $983,500 on Maui. The Hawaii state government produced a report that suggests 19% growth in population by 2025. In an interview on sfgate.com, Hawaii RealtorJulie Peters, an agent with Island Boutique Realty said she sold 5 properties unseen. A Slowdown In Housing Is Inevitable The pace of house price growth will slow because it cannot outpace income growth by such a wide margin for too long. And so far this year, private building authorizations throughout all islands grew $764.8 million or 32.9% vs same period last year. There are many indicators that point to a home price decline towards the end of 2022 and well into 2023. It's when we see more expired listings than usual. It's the very foundation of your business helping you coordinate services, collect payments and manage your expenses. The median days on the market was 73 days, up 10 year over year. 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. Affordability Challenges Remain Home prices, rents, and mortgage rates are all expected to be on the rise in 2022. Listing prices are down and homes are sitting on the market which can allow buyers to negotiate a great deal. 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. Clevers Concierge Team can help you compare local agents and find the best expert for your search. As the saying goesmarry the house, date the rate.. The Kahului area beat the national average for median home price growth, topping 7.2% recently. Sales fell 48% year over year yet prices are up 9.5%. Here are the latest Hawaii public housing starts numbers from the FED: With house and apartment construction numbers flagging so badly, we might forecast home prices and rent prices to rocket in 2021. For questions regarding the content, please reach out to press@zillow.com. The Best Low Commission Real Estate Brokers, Top Real Estate Agents in Hawaii (June 2021 Rankings), How to Sell a House By Owner in Hawaii (2021 Update), 5 Best Hawaii Flat-Fee MLS Companies in 2021, We Buy Houses for Cash Companies in Hawaii (2021 Rankings). Whereas many areas of the country have seen huge peaks and valleys, the trend line in Hawaii is steadily up. Looking for a property management company in Hawaii? 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. 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. Those buyers will not get that money back until the home appreciates giving them the money back in equity. In 2021, the median single-family home resale price reached 2.5 times the national median price. The area is expected to perform even better than the national average next year, with a forecasted growth of 4.3%. The Islands still have the allure, however housing supply, regulations, price appreciation and high mortgage rates are collectively slowing the housing market. 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 number of homes and condos which sold over asking price dropped between 68 and 73%. The forecast gives prospective buyers little to cheer as the new year looms . Hawaii is a competitive, low-inventory housing market. Hawaii Living How to Live Like A Local In Hawaii. You can see that as of May 2020 inventory was at 4.1 months of supply. 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. The steep rise in mortgage rates has shrunk affordability across the nation. Kenneth Research recently added a report on Flexographic Ink market which is studied for the forecast period 2022-2031. If you're thinking of buying or selling in Hawaii, these Hawaii housing predictions and stats can help you make an informed decision. Months of supply of houses are up 100% YoY. The decline looks steep but will this retreat to pre-pandemic levels by summer 2023? GDP was predicted to grow strongly through 2022. 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. Gov. 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). Leasehold ownership on the other hand means the buyer does not own the land; instead, they have a right to use the land for a predetermined amount of time. By . 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. If it makes sense for you to buy, go ahead and buy a home. Let's Talk about the difference between a seller's market and a buyer's market. of $677,700. Are there enough homes for sale to meet buyer demand? $480,000 on Hawai'i Island. Kahului ranks amongst the top places in Hawaii for house appreciation growth, making it one of the hottest housing markets in the state. Hawaii still falls short of the top spot, which is taken by Maryland, with a median household income of $94,384. Explore the features of a truly modern software for property management. Real estate trends in Hawaii | Sellers | Buyers | Investors | The best and worst of Hawaii | Hawaii resources. Looking back at the last 3 years, sales peaked in June 2021 at 91 sales. READ REDFIN'S FAIR HOUSING POLICY. The University ofHawaiiEconomic Research Organization(UHERO) most recent report forecasts rising interest rates, weakening pandemic era savings and a U.S. downturn will pause growth in the state. David Ige pointed this out in his State of the State speech in January, calling construction "a bright spot" and promising $1.1 billion in state capital improvement projects in 2022, another. Hilo offers residents a city lifestyle without the hustle and bustle, or the high city prices. However, this represents a large deceleration from 2021's expected record house price growth of 17.3 percent. Screenshot courtesy of Redfin.com. See this forecast chart on economic indicators forward to 2021. These types of sales are not impacted as much by rising mortgage rates. Single family sales report for November 2022. Definitely a sellers market. 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. There are currently 4,837 residential homes for sale in the United States. We offer this because we're confident you're going to love working with a Clever Partner Agent. Shoot me a text, give me a call or send me an email. Join Clevers network. As mortgage rates are at record highs in 20 years by 7.08%. The median price of a home in the United States is currently $677,700. Building permits reflect future construction trends and volume, and Hawaiis year over year growth was at a brisk 62% over the last few years. It is an area which is part of the city of Honolulu, the capital of the islands state. The housing market remains very competitive but slowing home value appreciation indicates that the frenzy from earlier in the year . Despite the limited inventory, turnaround is slow and the high markup certainly wont help this market heat up. Hawaii is one of the most attractive places to live in the US, and also one of the most expensive. Waimalu is number 1 on the list of Best Suburb for Young Professionals in Hawaii. Our team talks to so many people thinking about moving to Hawaii just like you and we absolutely love it! Does that mean you'll be buying a house for $900,000 or no house at all? 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. 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. In January 2023, home prices in Hawaii were down 5.5% compared to last year, selling for a median price. The trade association for the real estate finance industry forecasts mortgage originations for purchases to grow 9 percent in 2022, to a record of $1.73 trillion. Whether youre a single-working class individual or a family looking for that special spot to call home, if you have more questions about buying a house in Hawaii or the Hawaii real estate market in general dont hesitate to reach out. They found home prices in Hawaii are are some of he highest in the US. 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. The median household income is higher than the national median so people can absorb higher payments better. However, it appears homeowners are withdrawing properties from the Hawaii market and are perhaps unwilling to sell for what buyers are willing to pay. At the same time, the number of homes sold fell 47.9% and the number of homes for sale fell 8.6%. Pending sales have been falling for 18 months and are down 41% during 2022. Over the past 3 years, prices peaked in December 2021 at $892,500. Timing the market for buying or selling is a big gamble. 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. 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 Business Journals Select a City Will Hawaiis builders come to the rescue?