Pending sales have been falling for 18 months and are down 41% during 2022. The average months of supply is 5 months, up 3 year over year. All rights reserved. '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. Find out how much you can save with Clever today! 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. Do not sell or share my personal information. READ REDFIN'S, Do not sell or share my personal information. The median household income is higher than the national median so people can absorb higher payments better. 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. 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. Inventory was at an all-time low and demand was at an all-time high. The leverage was in the seller's hands which led to buyers overpaying for homes and having to bring a lot more cash to the table to close the deal. 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. 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. In April 2021, median sales prices for single-family homes were: $928,000 on O'ahu. Only 180 properties sold under $500,000 last month. The average price of a house in Hawaii rose 10.5% to $970,000. 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? Enter your zip code to see if Clever has a partner agent in your area. 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. 5% per month would put the market in correction mode. Report screenshot courtesy of REALTORS Association of Maui. You have been added to the ManageCasa mailing list. Even though the pandemic took its toll on sales numbers, as the pandemic is slowly disappearing the demand for homes will continue to grow. CLICK ANY OF THE BUTTONS BELOW TO SHARE THIS ARTICLE WITH ANYONE YOU KNOW WHO MAY BE PCSING TO HAWAII AND NEED THIS INFORMATION. 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. Our concierge team will be in touch shortly to help.Remember, this service is 100% free and theres never any obligation. Meaning you're actively shopping for a home here in Hawaii and ready to make offers. So they may have a higher rate in the beginning but did not have to come out of pocket with an extra $50,000. The average home price in the U.S. was $705,212 in January 2023 (including existing homes, new builds, single-family homes, condos and townhomes). Residential real estate (RRE) markets are impacted by the COVID-19 pandemic . The Hawaii Real Estate market has been BOOMING for the last couple of years. Redfin Hawaii homes sold above list price. Screenshot courtesy of Hawaii Realtors. Japanese and other foreign buyers are deeply interested too, however the 2020 Covid pandemic threats and travel restrictions have reduced interest from foreign buyers. In Sept 2022, there were 1,228 homes and condos sold in the state of Hawaii, a 31% decrease from Sept 2021, when there were 1,791 homes sold. If you're thinking of buying or selling in Hawaii, these Hawaii housing predictions and stats can help you make an informed decision. 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. Click the button below or go ahead and shoot us a text by tapping this number: (808) 388-8710. 23 homes sold in Sept 2022, down 11.5% from Sept 2021. 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. There are currently 4,837 residential homes for sale in the United States.. As of June 2022 and over the course of the last six months inventory was at 1.6 months. According to World Population Review, Hawaii is one of the most expensive states in the US to live. The downward trend is consistent with Octobers drop. PRINT THIS ARTICLE OUT IF YOU NEED IT FOR LATER. 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. What is the housing market like right now? If you don't love your Clever partner agent, you can request to meet with another, or shake hands and go a different direction. Price reduction was just briefly mentioned above. The Business Journals Select a City 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 The direction and pace at which home prices are changing are indicators of the strength of the housing market and. With the highest inflation we've seen in history and interest rates rising everyone is concerned with the next housing market crash. Houses on Kauai (+36.7%)and condos on Maui (+18.1%) still enjoy strong price growth. The great quality of life that these islands offer residents is a major drawcard, and the housing market adds to this drawcard. 2 Remember, median means half of all homes were listed for more than that and half were listed for less. As mortgage rates are at record highs in 20 years by 7.08%. Every real estate agent we spoke with agreed that 2022 is still likely to be a seller's market in the Bay Area. 364 homes sold in Honolulu in this time, and the median days on the market were 53, as of July 2022. EWA Gentry is currently a mildly competitive market. The housing affordability index for Honolulu is currently sitting at 74.80, which is an 8.09% increase, year-on-year. Thats all conjecture however as US GDP, employment and inflation remain strong. We already detailed when inventory means above but what is it that you should be looking out for? In the seller's market homes were barely staying actively listed for longer than a week before going under contract. Now that we are noticing the market shift, and not crash, let's talk about what we're shifting into. They also pointed out the housing regulations in the state are crippling and some of the most restrictive, thus curtailing availability of homes and rental units for residents. What is the best time to buy a house in Hawaii? Eligible buyers get cash back after closing. 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. Learn more about it in our guide to real estate investing. Hawaiis tourist visitor numbers have recovered to pre-pandemic levels according to Hawaii.edu. The issue however is that rent prices are beyond the reach of most. $983,500 on Maui. Next came Phoenix, Las Vegas, Sacramento, and Tampa. 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. They found home prices in Hawaii are are some of he highest in the US. Nationwide, 25% of homebuyers searched to move to a different metro area between Dec '22 - Feb '23. 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. Redfin also says home inventory has dropped 22.3% from 12 months ago and that 39.8% of homes old above list price, which is 14.6% from last February. The Residential Real estate market-Global is expected a growth rate of more 9% during the forecast period (2022 -2027). If international sales slows, wed wonder about where demand would come from in the years ahead. The spring and summer months are Hawaii's most active time of the year for home sales. 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. Explore the features of a truly modern software for property management. One thing you should never do as a home buyer is try to time the market. The United States as a whole felt the boom of the sellers market and Hawaii was no different in that aspect. Given construction constrictions on Maui and rising costs and financing costs, supply is definitely in doubt. price indicates that the housing market is competitive and bidding wars are becoming more common. This volatility has led to new trends and changes in the real estate market. A low or shrinking percentage of homes selling above list price suggests that the market is becoming less competitive.. Hawaiis mortgage rates are currently higher than the national average. 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. In real estate, Hawaii's office and housing markets have moved in opposite directions. The Hawaiian islands are a tourist mecca attracting over them 10 million tourists in a typical year. Year over year change in prices of houses on the Island of Oahu rose in November. A low or shrinking percentage of homes selling above list price suggests that the market is becoming less competitive. The Aloha State is known for its iconic beaches, lush rainforests, and delicious local foods like sweet shaved ice, poke, and Spam musubi. With Talks of a recession (by definition of) in July of 2022 as well as inflation combined with higher interest rates then what we saw with the historical lows this has affected buyer qualification and others being skeptical about purchasing at the right time. The book value of Alexandria Real Estate Equities Inc.'s Puget Sound area development pipeline tops $800 million, and includes a 10-story lab research building in Seattle's South Lake Union area. Hawaii falls in the top 10 highest median household income brackets in the US, at $83,173. While the median sales price overall for Hawaii was $717,200 in July 2022. Real Estate markets are highly local, and even within the same state, there will be areas that are projected to be hit hard by the market shift, and others will fare better. Screenshot courtesy of Redfin.com. 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. Listing prices are down and homes are sitting on the market which can allow buyers to negotiate a great deal. There were 1,251 home sales in Hawaii in July 2022. 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. 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. 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. So You can see how drastically inventory went down which then created more competition when we were in the seller's market. 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 adds that by 2025, Hawaii County's population will grow 29%, Maui County's by 25%, and Kauai County will rise by 19%. Hawaii remains one of the worlds most rare and attractive housing markets. Mortgage interest rates in Hawaii are now above the national average. In November 2022, most homes spent 56 days on the real estate market18 days less than typical pre-2020 levels. The Hawaii housing market is amid a major shift. SAN JOSE, Calif., March 01, 2023 (GLOBE NEWSWIRE) -- California Water Service Group (NYSE: CWT) ( "Company" or "CWT") today announced net income attributable to CWT of $96 The first thing that comes to mind for a lot of people is what happened in 2008. Some even come in under the listed price. You'll lose every time. 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. Another factor comes from lending rates affected by Hawaiis unique real estate laws. 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. This was a decrease of 28.7% from last year, when 1,754 homes were sold in July. After Octobers house price increase of 5% statewide, Novembers prices declined. put additional pressure on budgets which ultimately impact how much house someone can afford. 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. Looking for a property management company in Hawaii? Oahu real estate, home sales and prices, November 2022. 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. I now have spent more of my life here on the island of Oahu than anywhere else. When people look at housing market predictions for 2022, they often hope to find news about bubbles bursting, home prices plummeting, and inventory falling in favor of the buyer. The housing price graphs below reflect the Hawaii house prices over the last few years, supplied by Hawaii Realtors and RedFin. In simplest terms these really reference to old school economics when were talking about supply and demand. Dont forget to share this article with your friends and family. Waimalu has the Pearlridge Center, one of the biggest indoor malls in Hawaii and historical sites located nearby for tourists. In Sept 2022, 24 homes were sold with a median price of $800,500. Just a shift into a more normal Hawaii real estate market. Wailuku is one of the most affordable places to lives in Hawaii, with a median home price of $463,500. Should I buy a house in Hawaii now or wait for house prices to drop? In August 2022, Mililani Town home prices were down 2.9% compared to last year, selling for a median price of $685K. The median days on the market is 55, and its up 31% compared to last year. 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? There are currently 4,837 residential homes for sale in the United States. Buying A House In Hawaii 7 Things You NEED To Know FIRST! As of August 2022, mortgage rates for a 30-year fixed loan in Hawaii were 5.77%, and for a 15-year fixed loan were 4.78%. 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. 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. 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. 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 . However, these trends are unlikely - at least in the coming year. report on sfgate.com. With the rise of the pandemic in March 2020, home prices in Honolulu began their upward trajectory. Check out these property management firms in Hawaii. However, it appears homeowners are withdrawing properties from the Hawaii market and are perhaps unwilling to sell for what buyers are willing to pay. And so far this year, private building authorizations throughout all islands grew $764.8 million or 32.9% vs same period last year. Location Data Jan 2023 Growth % YoY Hawaii $677,700 -5.5% The islands are also home to over 1.4 million year-round residents. Recent survey data shows that . As mentioned previously, the Hawaii Real Estate market is one of the most expensive in the nation. Tourism spending dropped 2% YoY in May, although spending by Canadians rose. Is it still a place you might like to call home or perhaps a good city to buy a rental property? The market will remain competitive as long as inventory remains low. Screenshot courtesy of HiCentral. Condo sales similarly fell 43.4% and prices lowered by 4%. According to research conducted by major real estate bodies, including Mashvisor and some analysts, the housing market will continue to grow in 2023. 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. whether homes are becoming more or less affordable. ET Honolulu County and Maui County take the top spots of the richest areas in Hawaii. READ REDFIN'S FAIR HOUSING POLICY. First, what does a housing market crash even mean? The housing sales stats chart above released by Hawaii Realtors show a marked difference between Honolulu/Oahu and the rest of the islands. Real estate trends in Hawaii | Sellers | Buyers | Investors | The best and worst of Hawaii | Hawaii resources. 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. On average, homes in Mililani Town sell after 49 days on the market compared to 36 days last year. Whereas many areas of the country have seen huge peaks and valleys, the trend line in Hawaii is steadily up. They said Hawaiis labor market is better than the US average, and inflation will ease below 4% in 2023, and further down to 2.5% by 2024. Hawaii economic report screen capture courtesy of Hawaii.gov Research and Economic Analysis. 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. See this forecast chart on economic indicators forward to 2021. The Mortgage Bankers Association recently published their Mortgage Market Forecast for 2022, and the general consensus is that the cost of buying a home is expected to increase. The Hawaii 2021 Year in Review and 2022 Market Outlook captures trends and expectations across many facets of the Hawaii commercial real estate market. There were 25 homes sold in Sept 2022, the same number as Sept 2021. Except for the Island of Hawaii, house prices rose year over year by varying amounts and was up 17% statewide. Gov. With fee-simple, property buyers have complete ownership of the property, which includes the land and any improvements to the land in perpetuity. Bottom line it really just depends on what you're looking for. These are the counties that ranked the worst in the state. over year. Ready to buy a home in Hawaii? 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. This dataset excludes all rentals data. million Redfin.com users who searched for homes across more than 100 metro areas. Before investing, however, you need to do some research and plan out your finances and learn about the best neighborhoods to buy in. Hawaiis economy is very dependent on US overall economic activity, tourism and upon Japans economy. Hawaii has become a buyers market as the demand for real estate is declining, therefore sellers arent selling their houses as fast. Wages were rising and that should support higher apartment rental prices in 2021. 3 Find expert agents to help you buy your home. In order to have a better grasp on the conditions of the market you should first understand a little bit of real estate terminology. 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) Waimalu is located 22 minutes away from Honolulu by car. And you never know which tourist will decide to buy property on the Hawaiian islands. Thats the Spring buying season, and thats when typically most homes are sold. 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. In the condo market, new listings have fallen sharply by 22% during 2022, and are down 44% vs November of 2021. It adds that by 2025, Hawaii Countys population will grow 29%, Maui Countys by 25%, and Kauai County will rise by 19%. Save my name, email, and website in this browser for the next time I comment. This answer will vary depending on the intended use for a house. What's The Average Hawaii Real Estate Commission In 2021? Timing the market for buying or selling is a big gamble. The median price of a home in the United States is currently $677,700.. However, the forecast for housing permits in December 2022, at 3,701, was well above the actual reported number of 2,188. The feds just announced yet another .75% increase to the Federal Funds rate which means higher cost of borrowing in many areas. Hawaii real estate market forecast for sellers. By . Kahului ranks amongst the top places in Hawaii for house appreciation growth, making it one of the hottest housing markets in the state. *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. 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? 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 median price is 22% from Sept of 2021 and 23% from January 2022. In January 2023, home prices in Hawaii were down 5.5% compared to last year, selling for a median priceof $677,700. If youre buying multifamily property, these rules could pose a problem. Honolulu is the focus of most real estate investment interest.