Hawaii Market Conditions
Current Market Conditions in the State of Hawaii
Is this a good time to buy or sell a Hawaiian home? The answer always depends on current market conditions. Right now, the housing market in Hawaii is on a par with the rest of the country when it comes home price increases. The average home in the U.S. is expected to increase in price by 3.2 percent this year, while the average Hawaiian home is expected to increase in price by 3.1 percent. Keep in mind that the average Hawaiian home price is nearly three times the average price on the mainland. With stable prices and an increasing inventory, this makes it a good time to buy your Hawaiian dream home.
Market Conditions, Summer 2018
As of August 15, 2018, the average listing price for condos on Oahu is $648,188, while for homes the average listing price is $1,021,809. The median sale price from August, 2017, has risen by 6.4 percent, an average of $35,000. For 2018, the prices in some neighborhoods, including Hawaii Kai, Kailua, North Shore and Diamond Head, is down slightly, but in prices in other neighborhoods, including Ewa Beach, Pearl City, Waikiki and Kakaako are up. Whether up or down, neither average price has shifted a full percentage price, with the largest rise 0.49 percent in Waikiki and the biggest drop 0.29 percent, in both Diamond Head and North Shore.
On Maui, home sales increased 20 percent in July, 2018 over the previous year’s numbers. In that period, condo prices increased by almost 17 percent and single family homes by nearly 10 percent. Median prices were up as well, with condos at $513,163 compared to $440,000 in July, 2017, and single family dwellings at $769,000 as compared to 2017’s $701,000. Not only were prices higher, but 136 condos sold in July, 2018, versus 101 units in July, 2017, an increase of approximately 35 percent. This July saw 113 single family homes sold, compared to 92 homes sold in July, 2017. That’s an increase of 23 percent.
Factors Affecting the Market
Local and national factors are affecting the current real estate market. The Tax Cuts and Jobs Act, signed into law by President Donald J. Trump on December 22, 2017, changes the amount of deductible mortgage interest for new home purchases. Previously, the limit on deductibility was $1 million, but it has been reduced to $750,000. Fortunately, another change in the TCJA may not affect most homeowners, because while real estate in Hawaii is expensive, property taxes are relatively low. The TCJA caps the state and local property deduction at $10,000.
Across the country, unemployment is at historically low rates. In Hawaii, the unemployment is even lower than average, so that means demand for housing should remain high.
Contact Us
If you’re looking to buy or sell a home or find a rental property, you need a knowledgeable, experienced realtor. We know the current state of the market and make sure buyers, sellers and renters understand the process every step of the way. Contact Island Realty Group LLC at 808-689-7407 or IslandRealtyGroup@irghi.com.
