hawaii housing market forecast 2022 hawaii housing market forecast 2022

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 median days on the market was 73 days, up 10 year over year. The Hawaiian islands are a tourist mecca attracting over them 10 million tourists in a typical year. It is an area which is part of the city of Honolulu, the capital of the islands state. Well in this video we will go over the Oahu Market Crash in 2022 and what we are seeing hap. The population in Oahu is 953,207 as of 2022. 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). New listings of houses for declined by 34% year over year in November 2022 while days on market climbed 35%. The median home price in Waimalu is $446,800 which is lower than the state average, but still higher than the national average. Thats all conjecture however as US GDP, employment and inflation remain strong. In the image below you will see Data directly from the Honolulu MLS showing you inventory from the last 3 years and then as of June 2022 over the course of the last 6 months. Property investors and buyers from California, Arizona, UK, Australia, China, Germany, Russia, Japan, Canada, and other nations are the typical source for buyers according to sources. For questions regarding the content, please reach out to [email protected]. First, what does a housing market crash even mean? Your software is vital. The Hawaii state government produced a report that suggests 19% growth in population by 2025. Hilo offers residents a city lifestyle without the hustle and bustle, or the high city prices. 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. There was a 98.1% sale-to-list price, down 2.2 points year over year. On average, homes in Mililani Town sell after 49 days on the market compared to 36 days last year. What Is The Average Cost Of Homes In Honolulu Hawaii? The small town gives residents a relaxed way of life with surrounding natural beauty. Bottom line it really just depends on what you're looking for. 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. As of Sept 2022, the median price for a home in the state was $780,125, down3.3% from Sept 2021. Visitor spending is estimated to increase 7.8 percent in 2023. The direction and pace at which housing supply changes indicate whether the options for buyers are increasing or decreasing. All indications point towards a more balanced housing market as society moves into the new year. And you never know which tourist will decide to buy property on the Hawaiian islands. At the close of Q3 2021, the median interest rate was 2.8%. Download. Whereas many areas of the country have seen huge peaks and valleys, the trend line in Hawaii is steadily up. Similar to most housing markets in the US, Hawaii lacks housing supply which drives up prices. 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. Well take a look at this and more below. When fact there may not be anything wrong with it, the market is just shifted and it's bad timing for the seller. The Hawaii 2021 Year in Review and 2022 Market Outlook captures trends and expectations across many facets of the Hawaii commercial real estate market. She cites that California, Oregon and Washington is where buyers are coming from. The Kahului area beat the national average for median home price growth, topping 7.2% recently. Rents are forecast to . 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. $1.05 million on Kaua'i. O'ahu's median price was 14.7% higher than April 2020. Rents are forecasted to grow 7.1 percent and home prices 2.9 percent year-over-year. List with the best agents in your area for just 1.5%. CLICK ANY OF THE BUTTONS BELOW TO SHARE THIS ARTICLE WITH ANYONE YOU KNOW WHO MAY BE PCSING TO HAWAII AND NEED THIS INFORMATION. Please note this will be the last Market Pulse published externally. The median days on the market is 55, and its up 31% compared to last year. The Hawaiian economy is strong, unemployment is low and wages have risen over 4%. 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. 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. With the highest inflation we've seen in history and interest rates rising everyone is concerned with the next housing market crash. Pearl City has a median household income of $91,122, one of the biggest in the state. 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. While this would mark a fall in the current price growth of the market, it would still represent a strong growth by historical standards of the real estate market. 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. Save my name, email, and website in this browser for the next time I comment. Home prices in Hawaii were down 5.5% year-over-year in January. What's The Average Hawaii Real Estate Commission In 2021? Median home prices in Kahului are $642,500, and the median household income grew by 7.38% over the last year. By . Year over year change in prices of houses on the Island of Oahu rose in November. The Hawaii Kai-area three-bedroom property enjoys views of Diamond Head, the Pacific,. That makes for solid demand for rental units. Before investing, however, you need to do some research and plan out your finances and learn about the best neighborhoods to buy in. Price reduction was just briefly mentioned above. 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. Hawaii is my home! At the same time, the number of homes sold fell 47.9% and the number of homes for sale fell 8.6%. 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. Screenshot courtesy of Hawaii Realtors. Buyers finally have market power. Looking back at the last 3 years, sales peaked in June 2021 at 91 sales. 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. 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. 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. A steep incline from the 652.15 rating the state received in Q2 of 2020. There are residency requirements to qualify for government-backed Fannie Mae or Freddie Mac loan programs. It adds that by 2025, Hawaii Countys population will grow 29%, Maui Countys by 25%, and Kauai County will rise by 19%. In marked contrast to the beginning of 2022, is the current list of cities with price rises, a change of -51% for Kailua vs February 2022, yet Hilo has reduced only 2% since then. 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. Which means that, even though less homes were being sold in the state, they were being sold quicker than last year. Gov. 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. 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. The housing affordability index for Honolulu is currently sitting at 74.80, which is an 8.09% increase, year-on-year. Another factor comes from lending rates affected by Hawaiis unique real estate laws. As Of July 2022 this is what we are now seeing as the market begins to shift, not crash. 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 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. Homes stayed on the market for an average 18 days, up almost twice that of 12 months ago. In the condo market, new listings have fallen sharply by 22% during 2022, and are down 44% vs November of 2021. 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. The number of homes pending sale also fell . If it makes sense for you to buy, go ahead and buy a home. Hilo, Honolulu, Kihei, Kailua. Wailuku is one of the most affordable places to lives in Hawaii, with a median home price of $463,500. Hawaii still falls short of the top spot, which is taken by Maryland, with a median household income of $94,384. It adds that by 2025, Hawaii County's population will grow 29%, Maui County's by 25%, and Kauai County will rise by 19%. Our expectation of 7.6 percent growth in 2022 is still considerably higher than the average pace of 5.4 from 2012 to 2019. 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. 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 . 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. Eligible buyers get cash back with Clever! The median sale price was down 3.2% in February 2023 Y-O-Y, but the number of homes sold dropped 45.7%. 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. This chart below shows a strong trend were homeowners are receiving less than asked for. Historically speaking a recession does not equal a housing crisis and we're not predicting another round of 2008. More Homes Come on the Market More housing inventory will hit the market, so home prices will continue to rise but at a slower pace. The second largest island is Hawaii, with a population of 186,738 and the third largest is Maui, with 166,738 people. 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 area is expected to perform even better than the national average next year, with a forecasted growth of 4.3%. Following a record-breaking 2021, local brokers forecast trends in Hawaii's residential real estate market for the new year. Visitor arrivals are projected to increase to 10.1 million in 2024, 10.4 million in 2025, and 10.5 million in 2026. 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. There are currently 4,837 residential homes for sale in the United States. There are currently 4,837 residential homes for sale in the United States.. Click the button below or go ahead and shoot us a text by tapping this number: (808) 388-8710. Of all the major U.S. metros, Miami was the most searched for destination among homebuyers looking to relocate between Dec '22 - Feb '23. We had a full-blown recession along with a real estate housing crisis. 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. Homes are selling 11 days slower than the annual average. GDP was predicted to grow strongly through 2022. Waimalu is just a few minutes away from Waikiki beach. You can see that as of May 2020 inventory was at 4.1 months of supply. 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. What is the best time to buy a house in Hawaii? While the demand in some areas is expected to ease down, there will be new demand from new buyers and investors alike. Hawaii is one of the most attractive places to live in the US, and also one of the most expensive. Sales are not slowing down and demand keep growing in Pearl City. They. The market is fueled by wealthy out-of-state buyers causing demand for second homes to outpace any other part of the US. Compared to Sept 2021, the median days on the market have gone up by 43.9%. For sure, supply of single family houses, and even multifamily units is lacking. 2 Remember, median means half of all homes were listed for more than that and half were listed for less. See this forecast chart on economic indicators forward to 2021. Hawaii Housing Market Forecast: Demand to 2025 The Hawaii state government produced a report that suggests 19% growth in population by 2025. 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. With the rise of the pandemic in March 2020, home prices in Honolulu began their upward trajectory. However, this represents a large deceleration from 2021's expected record house price growth of 17.3 percent. Given construction constrictions on Maui and rising costs and financing costs, supply is definitely in doubt. In January 2023, home prices in Hawaii were down 5.5% compared to last year, selling for a median price. Affordability is becoming an issue. Screenshot courtesy of Redfin.com, Redfin Hawaii Home Sales History Chart. As of early November 2022, the 30-year fixed rate mortgage is above 7% on average. Hawaiis economy is very dependent on US overall economic activity, tourism and upon Japans economy. 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. Here is my complete housing market forecast for 2022 including data on population changes . In light of this, people have been flocking to the beautiful islands of Hawaii for a long time. Will Hawaiis builders come to the rescue? Our team talks to so many people thinking about moving to Hawaii just like you and we absolutely love it! Hawaii Real Estate [2022 UPDATE] Will The Housing Market Crash? Condo sales similarly fell 43.4% and prices lowered by 4%. In Sept of 2022, there were 38 homes sold in East Honolulu, a 42.3 % drop in sales from the same period in 2021. 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. There are other factors but these are some of the main ones. Get your free online home valuation in only 2 minutes! Potential economic upsides in 2022 The housing market likely won't crash. 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. Hawaii Real Estate Market in 2022: Forecasts + Trends. READ REDFIN'S, Do not sell or share my personal information. See the listing to sales ratio below. The great quality of life that these islands offer residents is a major drawcard, and the housing market adds to this drawcard. Kailua is considered a competitive real estate market right now. The spring and summer months are Hawaii's most active time of the year for home sales. In 2022, foreclosures were down 34% compared to 2019, according to the Year-End 2022 U.S. Foreclosure Market Report published by ATTOM Data. Studios, 3 bedrooms, and 4 bedroom homes saw a steep drop however. The direction and pace at which home prices are changing are indicators of the strength of the housing market and. In fact, we're just noticing a shift in the market and we'll talk about more indicators of a market shift. Determining how much money you need to buy a house has always been daunting for first-time homebuyers, but 2022 feels like a new level of frustration. Days on market up substantially at 43% YoY. There are many indicators that point to a home price decline towards the end of 2022 and well into 2023. REDFIN and all REDFIN variants, TITLE FORWARD, WALK SCORE, and the R logos, are trademarks of Redfin Corporation, registered or pending in the USPTO. Homes that sold above list price likely received multiple offers. The Hawaii Real Estate market has been BOOMING for the last couple of years. The average months of supply is 5 months, up 3 year over year. 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. For those who are interested in the hottest housing markets in Hawaii, here are some of the markets creating the biggest buzz. 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. 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. Although not necessarily tied to mortgage rates, an increas in rates in business loans, credit cards, etc. 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. 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. We already detailed when inventory means above but what is it that you should be looking out for? The United States as a whole felt the boom of the sellers market and Hawaii was no different in that aspect. The median price of a home in Sept 2022 was $1,525,000, which is definitely on the upper region of home prices compared to the national median price. In many areas, we have seen a month-over-month decline in house prices in the latter part of 2022. There were 22 homes sold in August this year, up from 21 last year. Whereas a large portion of the nation is experiencing a slowdown in sales, Kailua is holding steady. With fee-simple, property buyers have complete ownership of the property, which includes the land and any improvements to the land in perpetuity. Hawaii real estate market forecast for sellers. Will Hawaii home prices decline in 2022 and 2023? Median Sale Price All Home Types Median Sale Price Screenshot courtesy of Redfin.com. 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. Relatively speaking, this is a significant drop in sales which is a reflection of the impact of the pandemic and rising interest rates. Hawaii has some significant advantages over the rest of the country. Currently under contract is completely remodeled single-family home in Honolulu priced at $2.295 million. 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. Ready to buy a home in Hawaii? Mortgage interest rates in Hawaii are now above the national average. 23 homes sold in Sept 2022, down 11.5% from Sept 2021. The condo median price decreased by four percent from last year to $492,500. Based on Redfin calculations of home data from MLS and/or public records. 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. Additionally, many of the homes in Hawaii are 2nd homes and vacation homes, many of which are purchased with cash. A low or shrinking percentage of homes selling above list price suggests that the market is becoming less competitive.. And we could very well be wrong. almost as if you were walking through the grocery store looking for toilet paper and there was no toilet paper. Please bookmark this page and well update when new data is released. 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. And Hawaiis peace and serenity, beaches, parks, golf courses, hiking, Honolulu urban life, and culture are irresistible to buyers and tourists around the world. Clevers Concierge Team can help you compare local agents and negotiate better rates. 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. The feds just announced yet another .75% increase to the Federal Funds rate which means higher cost of borrowing in many areas. *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.