Potential economic upsides in 2022 The housing market likely won't crash. Oahu Sales Activity Down from January 2022 The number of newly listed homes was 1,083 and down 30.8% year over year. 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. 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. Looking for a Hawaii property management company? Affordability Challenges Remain Home prices, rents, and mortgage rates are all expected to be on the rise in 2022. The demand for real estate in the state is dipping, causing sales prices to fall and leaving properties on the market for longer than normal. 6,700 unemployment insurance claims were made so far in 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. 2 Remember, median means half of all homes were listed for more than that and half were listed for less. Much like the rest of the US, the housing market in Hawaii has been volatile since the start of the pandemic. The downward trend is consistent with Octobers drop. 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. Start simplifying every aspect of your property management experience today using a platform designed to be user friendly with automated features to give you optimize your workload. There were 22 homes sold in August this year, up from 21 last year. of $677,700. price indicates that the housing market is competitive and bidding wars are becoming more common. 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. Timing the market for buying or selling is a big gamble. All rights reserved. The market will remain competitive as long as inventory remains low. The housing sales stats chart above released by Hawaii Realtors show a marked difference between Honolulu/Oahu and the rest of the islands. 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. 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. Homes that sold above list price likely received multiple offers. There are currently 4,837 residential homes for sale in the United States.. The Hawaii Kai-area three-bedroom property enjoys views of Diamond Head, the Pacific,. Shoot me a text, give me a call or send me an email. The spring and summer months are Hawaii's most active time of the year for home sales. The median home price in EWA Gentry is up 22.7% from Sept of 2021, while the number of homes sold was down 36.8% compared to the same period last year. 5 WORST Things About Living In Waikiki Hawaii! Kenneth Research recently added a report on Flexographic Ink market which is studied for the forecast period 2022-2031. Topics include an overview of the local economy and an analysis of the office, industrial, retail, investment and hotel markets. The price of condos has also continued to rise, with no signs of the Hawaii housing market slowing down. Hilo, Honolulu, Kihei, Kailua. However, on the plus side, the state has one of the lowest poverty rates. In 2021, the median single-family home resale price reached 2.5 times the national median price. Except for the Island of Hawaii, house prices rose year over year by varying amounts and was up 17% statewide. 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. The feds just announced yet another .75% increase to the Federal Funds rate which means higher cost of borrowing in many areas. By . While the median sales price overall for Hawaii was $717,200 in July 2022. With the highest inflation we've seen in history and interest rates rising everyone is concerned with the next housing market crash. There was a 98.1% sale-to-list price, down 2.2 points year over year. For December 2022, foreclosure starts were up. 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! Looking for a property management company in Hawaii? However, the forecast for housing permits in December 2022, at 3,701, was well above the actual reported number of 2,188. However, this represents a large deceleration from 2021's expected record house price growth of 17.3 percent. Thats the Spring buying season, and thats when typically most homes are sold. Some have expressed concern with the high interest rates and are playing the waiting game hoping they come back down. 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. Waimalu is located 22 minutes away from Honolulu by car. Hawaii Real Estate [2022 UPDATE] Will The Housing Market Crash? Hawaii is one of the most attractive places to live in the US, and also one of the most expensive. 23 homes sold in Sept 2022, down 11.5% from Sept 2021. Screenshot courtesy of Redfin.com. '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. Hawaii falls in the top 10 highest median household income brackets in the US, at $83,173. Looking back over the past 3 years, sales peaked at 56 april 2021. 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. The islands are also home to over 1.4 million year-round residents. The population size in Hawaii is 1.4million. East Honolulu is a competitive area in terms of demand. The Hawaiian economy is strong, unemployment is low and wages have risen over 4%. The cost of living in Hilo is 28% lower than the overall cost of living in Hawaii. As of June 2022 and over the course of the last six months inventory was at 1.6 months. Engineering Firms Ranked by 2022 Hawaii Engineering Billings Feb 13, 2023, 2:12 pm HST Local real estate veteran joins Carvill Sotheby's International Realty Feb 11, 2023, 6:03 pm HST. Following a record-breaking 2021, local brokers forecast trends in Hawaii's residential real estate market for the new year. This is also below the national average, and Wailuku has a median monthly rent of $1,069. 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. 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. Hawaii offers home buyers an island lifestyle, coupled with the hustle and bustle of city life if they so choose. The average months of supply is 5 months, up 3 year over year. Tourism spending dropped 2% YoY in May, although spending by Canadians rose. According to World Population Review, Hawaii is one of the most expensive states in the US to live. Will Hawaiis builders come to the rescue? 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. 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. 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. Most people find the spring season the best time to buy a house. 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 Oahu housing market is continuing its strong pace even as interest rates rise. Hawaiis market continues to be one of the most expensive in the United States. Hawaii Living How to Live Like A Local In Hawaii. The median days on the market is 55, and its up 31% compared to last year. At the close of Q3 2021, the median interest rate was 2.8%. $983,500 on Maui. It is an area which is part of the city of Honolulu, the capital of the islands state. Redfin reports the median house price in Hawaii reach $696,000 in February which is up 10.4% from 12 months go. So, residents can experience the buzz of Honolulu, without the high home prices. 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. 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. As of Sept 2022, the median price for a home in the state was $780,125, down3.3% from Sept 2021. In April 2021, median sales prices for single-family homes were: $928,000 on O'ahu. Save my name, email, and website in this browser for the next time I comment. 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. 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. 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. 6 out of every 10 homes on Oahu sold for more than the list price and 5 out of every 10 condos sold for more than the list price. Our expectation of 7.6 percent growth in 2022 is still considerably higher than the average pace of 5.4 from 2012 to 2019. Only 180 properties sold under $500,000 last month. Homes are selling 11 days slower than the annual average. Our team of over 20 real estate analysts from across the country research local markets and data to compile our "Best" and "Worst" rankings. 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. ET New listings of houses for declined by 34% year over year in November 2022 while days on market climbed 35%. over year. Please note this will be the last Market Pulse published externally. 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. The stats actually show builders have grown their construction permits in the 3rd quarter of 2021 but are not keeping up with demand. 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. 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. 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 . The Hawaii state government produced a report that suggests 19% growth in population by 2025. Sales and price trends in November mirrored those of October and September. So they may have a higher rate in the beginning but did not have to come out of pocket with an extra $50,000. report on sfgate.com. 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. 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. For sure, supply of single family houses, and even multifamily units is lacking. READ REDFIN'S, Do not sell or share my personal information. On average, homes spent a median number of 54 days on the market in Hawaii in July 2022. With Clever, you'll only pay 1.5% or $3K in listing fees. With rising interest rates almost a certainty from the FED, home prices will likely decline further in the months ahead. Waimalu is number 1 on the list of Best Suburb for Young Professionals in Hawaii. Kailua is considered a competitive real estate market right now. Going the other way there are plenty of homes that are worth more than $900,000. However, it appears homeowners are withdrawing properties from the Hawaii market and are perhaps unwilling to sell for what buyers are willing to pay. Find out how much you can save with Clever today! Our property management software platform is a full-featured, all inclusive, property management application with a thorough, complete way to help manage rental property including the capacity to manage maintenance tasks, accept payments, conduct bookkeeping and accounting, screen tenants backgrounds, organize workflows, manage leases, conduct repairs, and store leases and documents securely. 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. Explore the features of a truly modern software for property management. Hawaii has some significant advantages over the rest of the country. Screenshot courtesy of Redfin.com, Redfin Hawaii Home Sales History Chart. All Rights Reserved - Privacy Policy | Terms & Conditions| Consent to Contact Customer | TREC Consumer Protection Notice | Information About Brokerage Services, 0.05% home value increase month over month. We already detailed when inventory means above but what is it that you should be looking out for? There were 25 homes sold in Sept 2022, the same number as Sept 2021. Although not necessarily tied to mortgage rates, an increas in rates in business loans, credit cards, etc. They. Over the last 2 years however, the housing market has been fluctuating along with rising and falling interest rates. Sales are not slowing down and demand keep growing in Pearl City. It's the very foundation of your business helping you coordinate services, collect payments and manage your expenses. 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. 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. Japanese and other foreign buyers are deeply interested too, however the 2020 Covid pandemic threats and travel restrictions have reduced interest from foreign buyers. Eligible buyers get cash back after closing. 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. $480,000 on Hawai'i Island. Because of that now everybody correlates a recession with a real estate market crash. The median sale price was down 3.2% in February 2023 Y-O-Y, but the number of homes sold dropped 45.7%. Hawaiis real GDP growth is expected to increase 1.4% in both 2020 and 2021. Contrast Hawaiian apartment prices to general US rental prices for apartments or houses. 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% . , The direction and pace at which housing supply changes indicate whether the options for buyers are increasing or decreasing. They can also indicate whether homes are lingering on the market or being sold faster than sellers are listing them. Just a shift into a more normal Hawaii real estate market. Rents are forecast to . Theycan also indicate whether homes are lingering on the market or being sold faster than sellers are listing them. Going forward, MBA forecasts the following steady rate increase through the end of 2022: 2021 Q3: 2.8% Q4: 3.1% While the median sales price overall for Hawaii was $717,200 in July 2022. Months of supply of houses are up 100% YoY. 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. 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. Bottom line it really just depends on what you're looking for. Hawaiis economy is very dependent on US overall economic activity, tourism and upon Japans economy. So far, in 2022, 6,700 people have filed for jobless benefits. 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. They found home prices in Hawaii are are some of he highest in the US. 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. Looking back at the last 3 years, sales peaked in June 2021 at 91 sales. Meaning you're actively shopping for a home here in Hawaii and ready to make offers. Through extensive research on housing markets, rental markets and trends, property management business strategy, and evolving PropTech solutions, Gord helps property managers choose the best software platform to manage rentals intelligently with an eye to profit and asset improvement. Let's list out some of the indicators then we'll go through them. The United States as a whole felt the boom of the sellers market and Hawaii was no different in that aspect. Join Clevers network. 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. The housing market remains very competitive but slowing home value appreciation indicates that the frenzy from earlier in the year . Find out how much you can save with Clever today! The direction and pace at which home prices are changing are indicators of the strength of the housing market and. 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. This is decrease of 8 days, from last years number of days which was 62. While this may be the typical home value, the median sales price in Honolulu in July 2022 was $577,000. In Sept 2022, 31 homes were sold, which is 46.6% down from Sept of 2021. Let's Talk about the difference between a seller's market and a buyer's market. Key Market Stats for the Hawaii Housing Market: As of the latest compiled housing report with data through Sept 2022. The Aloha State is known for its iconic beaches, lush rainforests, and delicious local foods like sweet shaved ice, poke, and Spam musubi. Well take a look at this and more below. There are currently 4,837 residential homes for sale in the United States. Do not sell or share my personal information. February 17, 2022, 2:20 AM PST Heading into 2022, there was a wide consensus among real estate firms that the annual rate of home price growth which peaked at 20% in August 2021 would. There were only 16.9% of homes that had price drops, up from 9.0% of homes in January last year.