While the median sales price overall for Hawaii was $717,200 in July 2022. 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. Based on Redfin calculations of home data from MLS and/or public records. 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 median days on the market is 59, which indicates a seller's market. This is decrease of 8 days, from last years number of days which was 62. Condo sales similarly fell 43.4% and prices lowered by 4%. While the median sales price overall for Hawaii was $717,200 in July 2022. For those who are interested in the hottest housing markets in Hawaii, here are some of the markets creating the biggest buzz. There will be less competition, and you may get a better deal. EWA Gentry is currently a mildly competitive market. Median days on the market in Sept 2022 was 45 day, an 19% drop from Sept 2022. All indications point towards a more balanced housing market as society moves into the new year. Although real estate has always been more expensive in Hawaii than most other states, the dip in demand makes it a good time to buy right now. Rental prices may be falling, however prices are often beyond the reach of many Hawaiians. HiCentral reports that properties available for sale in the $600,000 to $999,999 range grew 175% year-over-year and condos in the $400,000 to $2,000,000 price range grew 45% year over year. REDFIN and all REDFIN variants, TITLE FORWARD, WALK SCORE, and the R logos, are trademarks of Redfin Corporation, registered or pending in the USPTO. Will Hawaii home prices decline in 2022 and 2023? This was a decrease of 28.7% from last year, when 1,754 homes were sold in July. The housing market remains very competitive but slowing home value appreciation indicates that the frenzy from earlier in the year . The average months of supply is 5 months, up 3 year over year. 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. In 2021, the median single-family home resale price reached 2.5 times the national median price. Even though the pandemic took its toll on sales numbers, as the pandemic is slowly disappearing the demand for homes will continue to grow. 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. Gov. The steep rise in mortgage rates has shrunk affordability across the nation. 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. Waimalu is located 22 minutes away from Honolulu by car. When fact there may not be anything wrong with it, the market is just shifted and it's bad timing for the seller. 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. Factors such as overpricing the home, timing of the market, and not getting the traction they thought they might get on that particular home. 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 steep incline from the 652.15 rating the state received in Q2 of 2020. Whats next for the Hawaii housing market forecast for 2022? Nationwide, 25% of homebuyers searched to move to a different metro area between Dec '22 - Feb '23. Hawaii offers home buyers an island lifestyle, coupled with the hustle and bustle of city life if they so choose. CLICK ANY OF THE BUTTONS BELOW TO SHARE THIS ARTICLE WITH ANYONE YOU KNOW WHO MAY BE PCSING TO HAWAII AND NEED THIS INFORMATION. Key Market Stats for the Hawaii Housing Market: As of the latest compiled housing report with data through Sept 2022. However you want to get in touch with me, Ive got your back when moving to Hawaii! Rental demand is strong, while the Canada Mortgage and Housing Corp.'s 2022 spring housing market outlook suggests construction activity won't be enough to increase vacancy rates or reduce rents. The average months of supply is 5 months, up 3 year over year. The direction and pace at which housing supply changes indicate whether the options for buyers are increasing or decreasing. Hawaii real estate is offered in two different types: fee simple and leasehold. September 17, 2021. Maui is a market of few listings and big price increases. In a buyer's market the advantage (or leverage) is in the hands of the buyer. Each month, we compare locations in Hawaii based on a different criteria. Hawaii economic report screen capture courtesy of Hawaii.gov Research and Economic Analysis. Japanese and other foreign buyers are deeply interested too, however the 2020 Covid pandemic threats and travel restrictions have reduced interest from foreign buyers. 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. 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. According to keepingcurrentmatters.com, a top real estate news outlet, in 4 out of the last 6 recessions homes appreciated in value. 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. Let's list out some of the indicators then we'll go through them. Read on to find out our Hawaii housing market forecast for 2022. Following a record-breaking 2021, local brokers forecast trends in Hawaii's residential real estate market for the new year. Houses in the $700,000 to $1.1 million dollar suffered the largest drop in sales, down 55% year over year. By visiting our site, you agree to our privacy policy regarding cookies, tracking statistics, etc. That 2 weeks benchmark it's typically when we start to see a price reduction. While home sales have been falling over the last few months in Hawaii, prices have not dropped. As Of July 2022 this is what we are now seeing as the market begins to shift, not crash. Service providers are evolving with new digital software solutions that may make a big difference for you in 2022. 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. 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. The median price is 22% from Sept of 2021 and 23% from January 2022. Currently under contract is completely remodeled single-family home in Honolulu priced at $2.295 million. The market will remain competitive as long as inventory remains low. The Hawaiian economy is strong, unemployment is low and wages have risen over 4%. 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. $983,500 on Maui. Every real estate agent we spoke with agreed that 2022 is still likely to be a seller's market in the Bay Area. Except for the Island of Hawaii, house prices rose year over year by varying amounts and was up 17% statewide. On average, homes in Mililani Town sell after 49 days on the market compared to 36 days last year. The growth of purchases in the Aloha state in the last few years is astonishing yet housing supply will inevitably curtail sales and grow prices in 2021. Hawaii Real Estate [2022 UPDATE] Will The Housing Market Crash? 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. Price reduction was just briefly mentioned above. Closed sales fell by 40% and pending sales are down 32.6%. With rising interest rates almost a certainty from the FED, home prices will likely decline further in the months ahead. 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. Visitor spending is estimated to increase 7.8 percent in 2023. Sales fell 48% year over year yet prices are up 9.5%. While inventory levels are lower than usual here, the city continues to bustle and the real estate market thrives. By . The Hawaii housing market has seen moderate appreciation for years. For sure, supply of single family houses, and even multifamily units is lacking. Another factor comes from lending rates affected by Hawaiis unique real estate laws. Hawaii remains one of the worlds most rare and attractive housing markets. The pandemic has taken a toll on all economies, however Hawaii should bounce back as shut in Americans, Japanese, Canadians, and Europeans come of out of lockdown isolation. This answer will vary depending on the intended use for a house. And we could very well be wrong. One thing you should never do as a home buyer is try to time the market. 5% per month would put the market in correction mode. READ REDFIN'S FAIR HOUSING POLICY. As of the latest compiled housing report with data through Sept 2022. Will Hawaiis builders come to the rescue? Meanwhile, house prices are high. 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. Kailua is considered a competitive real estate market right now. 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. Days on Market is something that you should really pay attention to in the here and now. With the highest inflation we've seen in history and interest rates rising everyone is concerned with the next housing market crash. All rights reserved. The Hawaii housing market is amid a major shift. Hawaii real estate market forecast for sellers. Redfin Hawaii Home Prices. A seller's market is what we just experienced and the real estate industry by nearly the last two years. 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. What Is The Average Cost Of Homes In Honolulu Hawaii? Shifting into a buyer's market when you see a home that has been on the market for 10-14 days is usually when you will see a price reduction of some sort on that particular home. The great quality of life that these islands offer residents is a major drawcard, and the housing market adds to this drawcard. With the highest inflation we've seen in history and interest rates rising everyone is concerned with the next housing market crash. Hawaiis economy is very dependent on US overall economic activity, tourism and upon Japans economy. Yes, Hawaii is a great state to invest in real estate, especially in cities like Honolulu where there's always a demand for housing and vacation rentals. Sales volume has dropped a bit year over year. Interest in property here has been strong the past 12 years, with price appreciation in some areas of more than double over that time. The median price of a home in the United States is currently $677,700. 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. 5 WORST Things About Living In Waikiki Hawaii! *Resources: World Population Review, Redfin, Bank rate, Zillow, Bureau of Labor Statistics, KHON, Ycharts, FRED, ManageCasa, Hawaii Business, Upnest, Realtor.com, List with clever, 2022 New Silver Lending LLC | NMLS Company ID: 2154545 | All right reserved, Down Payment For A Rental Property - Overview of Requirements, 8 Best Real Estate Investing Podcasts In 2023. To be included in this dataset, a Redfin.com user 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. Check out these property management firms in Hawaii. Listing prices are down and homes are sitting on the market which can allow buyers to negotiate a great deal. Because home prices have risen so much since the start of the pandemic, some may fear the housing market will. 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. They can also indicate whether homes are lingering on the market or being sold faster than sellers are listing them. The first thing that comes to mind for a lot of people is what happened in 2008. The median household income is higher than the national median so people can absorb higher payments better. They. The small town gives residents a relaxed way of life with surrounding natural beauty. In January 2023, home prices in Hawaii were down 5.5% compared to last year, selling for a median priceof $677,700. Even as interest rates are projected to go up, the demand for homes will still be . Hawaii Housing Market Forecast: Demand to 2025 The Hawaii state government produced a report that suggests 19% growth in population by 2025. Screenshot courtesy of Redfin.com. Listings (homes for sale in the market) expire all the time and that's not always due to a shifting market. Updated January 2023: By searching, you agree to the Terms of Use, andPrivacy Policy. The prices are not consistent with the governments plan for lower inflation. A low or shrinking percentage of homes selling above list price suggests that the market is becoming less competitive. In the seller's market homes were barely staying actively listed for longer than a week before going under contract. When we say inventory we're talking about homes available for sale on the market. 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. 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. Let's Talk about the difference between a seller's market and a buyer's market. 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. As mortgage rates are at record highs in 20 years by 7.08%. With the rise of the pandemic in March 2020, home prices in Honolulu began their upward trajectory. Do not sell or share my personal information. Eligible buyers get cash back after closing. Want to save money when you buy or sell your home? 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? Would you like to see homes for sale in Honolulu, HI? If the agent selling the home reduces the price that could be due to one or many factors. If it makes sense for you to buy, go ahead and buy a home. Due to its unique location and limited space where homes can be built, Hawaii remais as one of the worlds most attractive and rare housing markets. Affordability is becoming an issue. Just a shift into a more normal Hawaii real estate market. Potential economic upsides in 2022 The housing market likely won't crash. Between home prices hitting record highs and . Pearl City is is one of the more affordable places to buy a home in the the islands of Hawaii. However, this represents a large deceleration from 2021's expected record house price growth of 17.3 percent. The cost of living in Hilo is 28% lower than the overall cost of living in Hawaii. What will 2022 bring to each? Waimalu is just a few minutes away from Waikiki beach. Were here when you need us! This comes in the wake of the changing real estate market which saw home prices rise drastically over the 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. According to research conducted by major real estate bodies, including Mashvisor and some analysts, the housing market will continue to grow in 2023. In 2022, foreclosures were down 34% compared to 2019, according to the Year-End 2022 U.S. Foreclosure Market Report published by ATTOM Data. While this may be the typical home value, the median sales price in Honolulu in July 2022 was $577,000. 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. 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. It has been forecasted that mortgage rates will rise to 4 percent by the end of 2022 Windward Oahu has the Most Potential for Increase in Real Estate Value In the past year we saw the increase in home prices throughout Oahu, but especially Honolulu, Hawaii Kai, Aiea, Ewa Beach, Makakilo and even Kailua and Kaneohe. As the market continues to shift back to a normal Hawaii real estate market we love helping our home buyers find their perfect place. 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. The Hawaii real estate market is noticing an uptick in inventory while demand is slowing down. 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. must have viewed at least 10 homes in a three month period. Home ownership rates should see a light increase in 2022 to 65.8 percent. As mentioned previously, the Hawaii Real Estate market is one of the most expensive in the nation. Step By Step: How To Buy A House In Hawaii From Top Local Real Estate Agents. 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. Year over year change in prices of houses on the Island of Oahu rose in November. 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. Some have expressed concern with the high interest rates and are playing the waiting game hoping they come back down. And that's just not true. You have been added to the ManageCasa mailing list. 1 But most experts report on the median, which saw an annual increase of 8.1% to $400,000. 2 Remember, median means half of all homes were listed for more than that and half were listed for less. The number of newly listed homes was 1,083 and down 30.8% year over year. The forecast gives prospective buyers little to cheer as the new year looms . 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. 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. 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! Maui is a market of few listings and big price increases. The average cost of homes in Honolulu Hawaii is just under $900,000. 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. Please note this will be the last Market Pulse published externally. 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. Save my name, email, and website in this browser for the next time I comment. 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. However, buyer behavior may change instead. Ensure theyre using a modern cloud based property management solution. The decline looks steep but will this retreat to pre-pandemic levels by summer 2023? Screenshot courtesy of Hawaii Realtors. The average home price in the U.S. was $705,212 in January 2023 (including existing homes, new builds, single-family homes, condos and townhomes). Eligible buyers get cash back with Clever!