Given construction constrictions on Maui and rising costs and financing costs, supply is definitely in doubt. Home ownership rates should see a light increase in 2022 to 65.8 percent. Meanwhile, house prices are high. 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. That 2 weeks benchmark it's typically when we start to see a price reduction. There were only 16.9% of homes that had price drops, up from 9.0% of homes in January last year. To make the buying process as easy as possible, work with a top real estate agent to help you find the perfect deal. The median home list price in Honolulu is $849,000, which is a 23.5% increase when compared to the same period last year. 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. Buyers who buy leasehold properties may not qualify for 30 year mortgage rates. With the rise of the pandemic in March 2020, home prices in Honolulu began their upward trajectory. According to research conducted by major real estate bodies, including Mashvisor and some analysts, the housing market will continue to grow in 2023. Let's list out some of the indicators then we'll go through them. A steep incline from the 652.15 rating the state received in Q2 of 2020. This dataset excludes all rentals data. The population in Oahu is 953,207 as of 2022. 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. In January 2023, home prices in Hawaii were down 5.5% compared to last year, selling for a median price. 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. The housing affordability index rating for Hawaii is 849.52. That's down 2.9 percentage points from last month . This comes in the wake of the changing real estate market which saw home prices rise drastically over the last year. East Honolulu is a competitive area in terms of demand. This is also below the national average, and Wailuku has a median monthly rent of $1,069. There are other factors but these are some of the main ones. 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. By . The number of homes pending sale also fell . We are going to look at the top 5 markets with the fastest growing sales prices, an indicator of demand and desirability of Real Estate in the market. Hawaii Housing Market Forecast: Demand to 2025 The Hawaii state government produced a report that suggests 19% growth in population by 2025. The issue however is that rent prices are beyond the reach of most. By visiting our site, you agree to our privacy policy regarding cookies, tracking statistics, etc. Learn more about it in our guide to real estate investing. Going the other way there are plenty of homes that are worth more than $900,000. 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. 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. The United States as a whole felt the boom of the sellers market and Hawaii was no different in that aspect. Kailua is considered a competitive real estate market right now. As mortgage rates are at record highs in 20 years by 7.08%. In 2021, the median single-family home resale price reached 2.5 times the national median price. Buyers finally have market power. READ REDFIN'S, Do not sell or share my personal information. The average price of a house in Hawaii rose 10.5% to $970,000. Whereas a large portion of the nation is experiencing a slowdown in sales, Kailua is holding steady. 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 median home price in Hilo is $318,000, which is less than half of the state median home price. In Sept of 2022, there were 38 homes sold in East Honolulu, a 42.3 % drop in sales from the same period in 2021. Hawaiis piping hot real estate market is not expected to cool any time soon as a result of rising mortgage rates, according to real estate experts. 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. Investment is likely to grow. can also indicate whether homes are lingering on the market or being sold faster than sellers are listing them. Thats the Spring buying season, and thats when typically most homes are sold. It's when we see more expired listings than usual. Ensure theyre using a modern cloud based property management solution. SEARCH HOMES IN FOR SALE IN HONOLULU HAWAII. 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. Compared to Sept 2021, the median days on the market have gone up by 43.9%. The feds just announced yet another .75% increase to the Federal Funds rate which means higher cost of borrowing in many areas. Sales and price trends in November mirrored those of October and September. Price reduction was just briefly mentioned above. Some have expressed concern with the high interest rates and are playing the waiting game hoping they come back down. '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 price of condos has also continued to rise, with no signs of the Hawaii housing market slowing down. The median home price in Waimalu is $446,800 which is lower than the state average, but still higher than the national average. Redfin Hawaii homes sold above list price. As the market continues to shift back to a normal Hawaii real estate market we love helping our home buyers find their perfect place. Shoot me a text, give me a call or send me an email. *Resources for all data in this article can be found below. 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. 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. 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. Because of that now everybody correlates a recession with a real estate market crash. 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. In April 2021, median sales prices for single-family homes were: $928,000 on O'ahu. Maui is a market of few listings and big price increases. Join Clevers network. What is the best time to buy a house in Hawaii? Theycan also indicate whether homes are lingering on the market or being sold faster than sellers are listing them. 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? The median days on the market has increased from 57 in Sept 2022 to 64 in Sept 2022. 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. That makes for solid demand for rental units. Clever's analysis of state market trends is based on local data from Zillow, realtor.com, Redfin, Bankrate, the U.S. Census, and Clever surveys. When the lease is up, the land reverts to the lesser. However, the Hawaii housing market is poised to continue being robust even with the current real estate market turmoil. These types of sales are not impacted as much by rising mortgage rates. The first thing that comes to mind for a lot of people is what happened in 2008. 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. Please note this will be the last Market Pulse published externally. 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. Find out how much you can save with Clever today! With rising interest rates almost a certainty from the FED, home prices will likely decline further in the months ahead. Housing Market Update: Home Prices Fall Annually For First Time in a Decade As Mortgage Rates Pass 7%, The Typical U.S. Home Changes Hands Every 12 Years, Down From 2020 Peak, Market Recovery Hampered by High Housing Costs, Low Supply in January, Housing Market Predictions 2023: A Post-Pandemic Sales Slump Will Push Home Prices Down For the First Time in a Decade, Redfin Predicts a More Balanced Housing Market in 2022, Housing-Market Mayhem: U.S. Home Sales Likely to Hit Record High of $2.5 Trillion In 2021, REDFIN IS COMMITTED TO AND ABIDES BY THE FAIR HOUSING ACT AND EQUAL OPPORTUNITY ACT. Hawaii Key Takeaways Typical Home Values: $826,348 1-year Value Change: +9.2% (Data through January 31, 2023) Market Overview -- 1-year Market Forecast 0.995 Median sale to list ratio (December 31, 2022) 25.1% Percent of sales over list price (December 31, 2022) 51.6% Percent of sales under list price (December 31, 2022) Talk of housing market crashes are rife across the country, based on continued rising interest rates and therefore mortgage rates. It adds that by 2025, Hawaii County's population will grow 29%, Maui County's by 25%, and Kauai County will rise by 19%. GDP was predicted to grow strongly through 2022. Hawaii offers home buyers an island lifestyle, coupled with the hustle and bustle of city life if they so choose. Copyright: 2023 Redfin. Japanese and other foreign buyers are deeply interested too, however the 2020 Covid pandemic threats and travel restrictions have reduced interest from foreign buyers. As in California, many owners are waiting for the housing market to return next late spring, supposing that inflation is beaten and mortgage rates will drop and prices will be down. Though Hawaii is known for its eight major volcanic islands, the archipelago actually spans a total of 137 islands in all. Hawaiis tourist visitor numbers have recovered to pre-pandemic levels according to Hawaii.edu. Fortunately, the Hawaii economy is poised to be more resilient than other states due to its higher income earnings and purchases from out of state buyers who are well heeled. 3 Find expert agents to help you buy your home. As of early November 2022, the 30-year fixed rate mortgage is above 7% on average. 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 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. If you see a home that has been sitting on the market typically the first question that comes to my mind is, what's wrong with it? $983,500 on Maui. Because of the pandemic, 2022 stats are not available as yet. 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. In the condo market, new listings have fallen sharply by 22% during 2022, and are down 44% vs November of 2021. More supply is coming eventually: The total number of homes under construction, including both single-family . HONOLULU (HawaiiNewsNow) - The Honolulu Board of Realtors says the median price of a single-family home on Oahu fell slightly to $1,105,000 for April. 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. A high or growing percentage of homes selling above list. New listings declined during the month by 26.2% for single-family homes and 18.6% for condos, YoY. There were 1,251 home sales in Hawaii in July 2022. Hawaii has become a buyers market as the demand for real estate is declining, therefore sellers arent selling their houses as fast. There are residency requirements to qualify for government-backed Fannie Mae or Freddie Mac loan programs. Recent survey data shows that . $480,000 on Hawai'i Island. The Oahu housing market is continuing its strong pace even as interest rates rise. Contrast Hawaiian apartment prices to general US rental prices for apartments or houses. In Hawaiis real estate market we are not currently predicting a full-on housing crisis. 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. In simplest terms these really reference to old school economics when were talking about supply and demand. Over the past 3 years, prices peaked in December 2021 at $892,500. Hawaii real estate is offered in two different types: fee simple and leasehold. 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. Wailuku is one of the most affordable places to lives in Hawaii, with a median home price of $463,500. Another factor comes from lending rates affected by Hawaiis unique real estate laws. Hawaii real estate market forecast for sellers. We appreciate you reading these updates each week! Condominium sales report for November 2022. Is it still a place you might like to call home or perhaps a good city to buy a rental property? 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. Inventory was at an all-time low and demand was at an all-time high. Relatively speaking, this is a significant drop in sales which is a reflection of the impact of the pandemic and rising interest rates. Redfin Hawaii Home Prices. Hawaii Real Estate Market in 2022: Forecasts + Trends. 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 Wednesday, Zillow researchers released a revised forecast, predicting that U.S. home prices would rise 14.9% between March 2022 and March 2023. 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. 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. The median price of a home in the United States is currently $677,700.. In 2022, foreclosures were down 34% compared to 2019, according to the Year-End 2022 U.S. Foreclosure Market Report published by ATTOM Data.