Only one state can boast year-round sunshine and world-famous beaches, the longest life expectancy of all 50 states, and the US’s only capital city to boast a true royal palace — Hawaii.
Have you been dreaming of owning a home on one of the islands of this lush tropical oasis? Or maybe new opportunities are taking you elsewhere, and it’s time to sell? Because real estate investment is one of the most substantial purchases you’ll make in your lifetime, it’s always wise to do your homework before closing the deal. Tracy Allen, a trusted Honolulu real estate expert, has compiled the latest Hawaii real estate market data along with timely advice about how to buy or sell in this current market. Read on!
What’s happening in the market right now?
It’s important to keep these historic events in view as we look at the short-term market data, but we will also take a step backward and evaluate the growth trajectory of real estate over a longer period of time, comparing where we are now to the historic Hawaii real estate market.
According to the late statistics from Hawaii Realtors, condo sales are down by 26.7% across the state since this time last year. In addition, condo prices have increased by 7.1%. Single-family home sales are down by 25.1% over the last year, and prices have decreased by 16.3%.
Now, with these short-term statistics in mind, let’s step back and take a look at the last decade of real estate in Hawaii. 2022’s and early 2023’s “diminished” sales are only lesser when compared to 2021. Next to every other statistic, 2022 was the second-highest in sales. By drawing a line that runs through the sales number or dollar value of home sales over the past 10 years, you’ll see a steady, upward trajectory with occasional fluctuations.
Home values remain high
The available inventory of houses for sale began to decrease in 2022, as substantially more condos and single-family homes were sold in 2021 than any other year prior. 2021 saw the sale of 9,786 single-family homes and 11,304 condos state-wide, both of which dropped in 2022. Those high rates of sale during the pandemic were not sustainable, as there simply aren’t enough houses or condos available on the market.
The impact of interest rates
Favorable indicators for landlords
Also, tourism is well on its way to recovery. Americans from the mainland are the most frequent guests in the Aloha State. US tourism increased significantly last year, and tourist rentals are thriving as a result.
Hawaii’s median home prices in 2023
Is now a good time to invest in Hawaii real estate?
Due to new construction restrictions, and by virtue of the fact that Hawaii is an island, the asset of buildable land is very limited, and appreciation of real estate is inevitable. Whether you plan to use the property for your own residence, a vacation home, or a rental property, there are many ways the home can add value to your investment portfolio.
According to the economists at UHERO, Hawaii has tremendous strengths to draw from in order to weather the changes the US economy has experienced in the last year. Growth in job opportunities and tourism, coupled with the undeniable desirability of living in this world-famous island paradise, are all great news for investors.
Learn more and invest with confidence
*Header photo courtesy of Shutterstock