Navigating Oahu’s Real Estate Market in 2024 A Step by Step Guide to Making Informed Buying Decisions on Hawaii’s Island Pearl
Step-by-Step Guide to Buying Property on Oahu in the New Year
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Table of Contents:
Quick Facts:
• Hawaii’s real estate market has experienced significant growth in the past year, with prices rising by over 20%.
• The average sales price per square foot on Oahu is around $760.
• The median sales price for a single-family home on Oahu in December 2023 was $850,000.
• Oahu’s demand for new construction increased by 15% in the fourth quarter of 2022, compared to the same period in 2021.
• Interest rates have been relatively low, averaging around 4.3% in December 2023.
• The largest Oahu property group to hit $100 million in sales value was the 193k home marketed by the Wynn Group.
• Oahu has seen significant growth in rentals, with the average rent per square foot for a single-family home increasing by 10% in the past year.
• A significant portion of Oahu’s new construction projects are selling quickly, with many homes selling in less than 30 days.
• Hawaii actively encourages investors to invest in Oahu’s real estate market, offering attractive incentives such as 10-year property tax-free leases.
• Oahu’s proximity to other major cities attracts buyers looking for a diverse market experience, making demand from cities such as Honolulu and Hilo increasingly high.
Step-by-Step Guide to Buying Property on Oahu in the New Year:
Step 1: Setting Your Budget:
| Required Information | Estimated Value |
| — | — |
| Gross Income (annual) | $ |
| Debts | $ |
| Savings | $ |
| Mortgage Allowance | $ |
Step 2: Researching Neighborhoods:
| Required Information | Required Resources |
| — | — |
| Neighborhood | Online Research: Oahu Neighborhoods |
| Affordability | CBBT Property Report |
Step 3: Getting Pre-Approved for Mortgage:
| Institution | Required Information | Estimated Mortgage Rate |
| — | — | — |
| Bank | Down Payment (5-20%) | 4-6% |
| Credit Union | Savings (1-75%) | 3-5% |
| Online Lender | Income (gross)$ | 4-5% |
Step 4: Inspecting the Property:
| Inspecting the Property | Required Resources |
| — | — |
| Home Inspection | National Association of Home Inspectors |
| Homeowner Association (HOA) Documents | Oahu HOA Documents |
Step 5: Talking to a Real Estate Agent:
| Recommended Agent | Local Market Expertise |
| — | — |
| Real Estate Agent | Oahu Market Analysis |
| Realtor Magazine Interviews | Agent Interviews |
Step 6: Financial Planning:
| Resources | Budgeting Tools |
| — | — |
| Credit Counseling | NAMI Financial Tools |
Step 7: Applying for Financing:
| Institution | Application Requirements |
| — | — |
| Bank | Credit Report |
| Online Lender | Income (gross)$ |
Step 8: Final Inspections:
| Final Inspection Sources | Contact Information |
Step 9: Closing the Deal:
| Closing Requirements | Contact Information |
| — | — |
| Title Insurance | |
| Escrow Account Set Up | |
Step-Specification: Closing the Deal:
| Final Procedures | Contact Information |
| — | — |
| Tenant Signing | |
| Environmental Closing | |
Step 10:
Oahu Home Buying Resources
Frequently Asked Questions:
-
Q: What’s the first step in buying a property on Oahu?
A: The first step is to get pre-approved for a mortgage. This will give you an idea of how much you can afford and will also make your offer more attractive to sellers. -
Q: How do I get pre-approved for a mortgage?
A: You can get pre-approved for a mortgage by contacting a lender or a mortgage broker and providing them with financial information such as your income, credit score, and debt. They will then provide you with a pre-approval letter stating the amount you are qualified to borrow. -
Q: What’s the next step after getting pre-approved?
A: The next step is to identify your needs and wants in a property. Make a list of the features you must have, such as location, number of bedrooms and bathrooms, and amenities. -
Q: How do I find properties that fit my needs and budget?
A: You can find properties that fit your needs and budget by working with a reputable real estate agent or by searching online for properties on websites such as Zillow, Redfin, or Realtor.com. -
Q: What’s the process of making an offer on a property?
A: When you find a property you’re interested in, your real estate agent will help you make an offer by submitting a written offer that includes the price you’re willing to pay, any contingencies, and your proposed closing date. -
Q: What are contingencies?
A: Contingencies are conditions that must be met before the sale is final. Common contingencies include a home inspection, financing, and sale of a current home. -
Q: How long does it take to close on a property?
A: The length of time it takes to close on a property can vary, but it typically takes 30-60 days from the time your offer is accepted to the time you close on the property. -
Q: What’s the final step in the buying process?
A: The final step is to close on the property, which involves signing the final documents and transferring the ownership of the property to you. -
Q: Are there any additional costs associated with buying a property on Oahu?
A: Yes, in addition to the purchase price, you’ll need to factor in additional costs such as closing costs, escrow fees, and appraisal fees. -
Q: Do I need to work with a real estate agent to buy a property on Oahu?
A: While it’s not required to work with a real estate agent, it’s highly recommended. A reputable agent can guide you through the process, provide valuable insights, and help you negotiate the best deal. -
Q: What’s the best time to buy a property on Oahu?
A: The best time to buy a property on Oahu is when you’re ready and able to do so. The Oahu real estate market can be competitive, so it’s a good idea to be prepared and act quickly when you find a property you like.
Resources & Links:
https://www.hawaiilife.com/oahu/buying-selling-guide/buying-a-home-on-oahu/
https://www.zillow.com/oahu-hi/
https://www.realtor.com/realestateandhomes-search/Hawaii_HI/filter=new_listings_all_time/
https://www.honolulurealestate.com/
https://www.islandproperties.com/
For Buyers & Sellers:
As we embark on a new year, those considering buying or selling property on Oahu may be navigating an ever-changing real estate landscape.
New Listings & Properties for Sale in Step-by-Step Guide to Buying Property on Oahu in the New Year
Steps to Buying a House for the First Time
Buying A House In Hawaii – 7 Things You NEED To Know …
(Oʻahu) Real question: how do you find a house to buy?
I live in Hawaii. Is it worth buying property here?
Photos of Step-by-Step Guide to Buying Property on Oahu in the New Year
