Oahu Hawaii Real Estate: Updates on the Honolulu Housing Market
The Hawaii real estate market has always been a topic of interest and conversation, especially in recent times. Many people wonder why Hawaii’s real estate prices seem so resistant to the usual market forces, such as fluctuations in mortgage rates. The answer, in large part, lies in the fundamental economic principle of supply and demand.
Supply and Demand Dynamics
One of the primary reasons why Hawaii’s real estate prices remain high is the persistent shortage of housing supply compared to the demand. In the past year, the market has witnessed a 1.6% decrease in prices, which may seem small, but it translates to an approximate $17,000 reduction in the median price. However, this slight dip hasn’t been enough to create a significant buying frenzy.
Limited New Listings
The root cause of the housing price resilience in Hawaii is the limited number of new listings coming onto the market. As of now, there is a 28.8% decrease in new listings compared to previous years. This means there simply isn’t enough housing inventory to accommodate all the interested buyers.
Supply Shortage and Its Consequences
Historically, a healthy real estate market maintains a balance between supply and demand, with about six months of inventory available. Presently, Hawaii’s market has only a 2.6-month supply of homes for sale, far below the historical average. This inventory shortage continues to drive prices up.
Opportunities in New Construction
While the overall market shows resistance to price drops, some opportunities exist for savvy buyers. New construction homes, like those by DR Horton’s Hoopili and the Kobayashi Group’s Kuilei, offer a unique advantage. These homes come with longer closing times, which can be advantageous for buyers who want to wait for the market to stabilize.
Locking in Prices for the Future
Buyers are presented with opportunities to lock in prices for up to three years, anticipating that interest rates will decrease again, and property values will rise. The current market conditions offer buyers a chance to make a strategic purchase while taking advantage of lower prices.
Red Tag Event – New Homes in Hawaii
July 24, 2023
Are you in the market for a new home in Ewa Beach, Hawaii? The Red Tag Event at Hoʻopili offers a fantastic opportunity to acquire a brand new home at prices below market resale homes. Some of the featured homes include:
- 91-1487 Wahinana Loop
- Plan 4 – Eha
- 1579 SqFt
- 3 bedrooms, 2 baths, 1 half-bath
- Under Contract!
- 91-1763 Kohanahana Loop
- Plan 6 – Eono
- 1851 SqFt
- 4 bedrooms, 2.5 baths, 2-car garage
- Under Contract!
- 91-1775 Kohanahana Loop
- Plan 2 – Elua
- 1279 SqFt
- 3 bedrooms, 2 baths, 1 half-bath
- Price: $919,215
These homes are offered by D.R. Horton Hawaii LLC and are part of the ʻIkena residential subdistrict of Hoʻopili.
June Hawaii Real Estate Market
July 24, 2023
According to recent resale figures released by the Honolulu Board of REALTORS®, the monthly median sales prices for both single-family homes and condos have seen a year-over-year decrease of 4.5%. In June, the median sales price for single-family homes was $1,050,000, while condos were priced at $510,000.
Single-family home sales experienced a significant drop of 30.5%, and condo sales declined by 24.9% compared to the same period last year. However, the market’s pace has remained relatively fast, with most properties entering into a contract within just over two weeks.
Pending sales have been impacted as well, with contract signings decreasing year-over-year and month-over-month due to the rise in average mortgage rates in June. For single-family homes, pending sales fell by 24.3% year-over-year and 10.5% month-over-month. Condo markets experienced a 17.2% decline from June 2022 and an 18.1% drop from the previous month.
While both markets saw double-digit sales growth from the first quarter of 2023 to the second, with a 28.4% increase for single-family homes and a 27.2% rise for condos, sales were approximately one-third lower compared to the same period last year.
Despite the market fluctuations, Hawaii’s real estate prices have steadied somewhat from the rapid rise observed in 2021 and the first half of 2022. The midyear median sales price for single-family homes stood at $1,050,000, down 5.5% from the 2022 median price of $1,111,211. For condos, the year-to-date median sales price was $500,000, just 2.9% below the June 2022 year-to-date median.
While the market continues to offer opportunities for buyers, it’s essential to consider the pros and cons carefully, especially with Hawaii’s high cost of living, limited job opportunities in some fields, potential isolation due to the island’s location, and the distance from the mainland United States.
Cool Before the Hot Summer Market
May 7, 2023
The Oahu Real Estate Market saw a significant slowdown compared to the same month last year. Single-family homes and condominiums experienced a 43% and 37.5% decrease in sales, respectively. However, median prices have held relatively steady due to consistently low inventory.
The median single-family home prices in Oahu decreased by nearly 10% year-over-year, landing just under a million dollars last month. The cooling of the market has been observed, but there are signs of increased activity as the Military season, characterized by personnel coming to and leaving the island, approaches.
The Oahu real estate market varies from neighborhood to neighborhood, with Kakaako being a prime example. It offers a unique blend of urban living and island vibes, making it a sought-after location for many. The proximity to downtown Honolulu and Waikiki, coupled with its thriving art scene, dining options, and access to outdoor spaces, make Kakaako a desirable neighborhood for residents of all backgrounds.
Pros and Cons: Military Families Living in Hawaii
April 17, 2023
For military families considering a move to Hawaii, it’s essential to weigh the pros and cons of living in this unique and beautiful state.
Pros:
- Beautiful Natural Surroundings: Hawaii offers stunning beaches, lush rainforests, and majestic mountains, providing incredible natural beauty and outdoor opportunities.
- Unique Cultural Experiences: The state boasts a rich and diverse culture, blending Native Hawaiian traditions with influences from Asia, Europe, and the Americas. It’s a place to explore hula dancing, traditional Hawaiian foods, and various cultural events.
- Access to Amenities: With several military bases in the islands, military families have access to housing, schools, fitness facilities, and community centers.
- Favorable Weather: Hawaii enjoys a warm and mild climate year-round, perfect for outdoor activities and events.
Cons:
- High Cost of Living: Hawaii ranks among the states with the highest cost of living in the US, making it challenging for military families to make ends meet.
- Limited Job Opportunities: Depending on your field, finding employment opportunities in Hawaii can be difficult, especially for military spouses seeking additional income.
- Isolation: Living on an island can sometimes feel isolating, especially if you’re far from friends and family on the mainland. Building a sense of community outside the military base can be challenging.
- Distance from Mainland: Hawaii is quite far from the mainland US, resulting in expensive and time-consuming travel, making it challenging to visit family and friends or attend important events.
Overall, living in Hawaii as a military family offers unique experiences and challenges. Careful consideration of the pros and cons is essential to make an informed decision.
Buying Property in Hawaii
April 17, 2023
Thinking of buying real estate in Hawaii? Here are some important things to know:
- Research: Hawaii comprises multiple islands, each with unique real estate markets. Research and determine which island or neighborhood suits your needs.
- Competitive Market: Hawaii’s real estate market can be competitive, with properties moving quickly. Work with a local real estate agent who knows the market.
- Financing: Financing can be more challenging in Hawaii due to stricter lender requirements and potentially higher interest rates. Consult with a lender experienced in Hawaii real estate.
- Inspection: Due to Hawaii’s tropical climate, inspections are crucial to uncover issues like mold, termites, and structural damage.
- Maintenance Costs: Be prepared for higher maintenance costs in Hawaii due to the humid climate and salty air.
Despite challenges, buying real estate in Hawaii can be a rewarding investment given its natural beauty, unique culture, and lifestyle.
What’s It Like Living in Kakaako
April 17, 2023
Living in Kakaako, Hawaii, offers a unique blend of urban living and island vibes. Here’s what you can expect:
- Prime Location: Situated between downtown Honolulu and Waikiki, Kakaako provides easy access to city amenities and entertainment.
- Art Scene: Kakaako boasts art galleries, studios, and street murals, making it an artistic hub. First Friday events feature live music, food trucks, and art displays.
- Dining Options: The neighborhood offers a variety of dining options, from farm-to-table restaurants to food halls.
- Outdoor Spaces: Enjoy the nearby ocean with waterfront parks and beaches like Ala Moana Beach Park and Kakaako Waterfront Park.
- Housing: Kakaako features modern high-rise condos and apartments, albeit with higher costs. The amenities and convenience often justify the investment.
Living in Kakaako offers a unique urban-island lifestyle, making it a desirable neighborhood for many.
A Market Where Everyone Wins?
April 7, 2023
The Hawaii real estate market is experiencing some intriguing shifts. Here’s a look at the recent developments:
- Buyers’ Market: Buyers are taking advantage of the current market conditions, with only 35% of single-family homes and 36% of condos selling at or above asking price.
- Price Adjustments: Prices have seen some decline, with a 12.3% drop for single-family homes and a 3.4% decrease for condos compared to the previous year.
- Inventory Increase: Housing inventory has increased compared to the same time last year, giving buyers more options.
The market presents opportunities for buyers, making it a favorable time to explore the Hawaii real estate market.
Opportunity Awaits as the Market Shifts
March 6, 2023
The Hawaii Real Estate Market is experiencing a shift, offering opportunities for both buyers and sellers. Key market dynamics include:
- Buyer’s Market: Properties are staying on the market longer, and fewer sales are happening at or above asking price. Only 32% of single-family homes and 36% of condos received full asking price or more.
- Price Adjustments: Median prices have seen a decrease, with a 12.3% drop for single-family homes and a 3.4% decline for condos compared to the previous year.
- Inventory Increase: Housing inventory has increased month-over-month, although it remains lower compared to the previous year.
- Buyer Opportunities: Buyers are in a strong position to negotiate favorable deals, and some are taking advantage of mortgage rate decreases.
The market is evolving, creating opportunities for those looking to buy or sell real estate in Hawaii.
