Is Now a Good Time to Buy an Investment Property in Hawaii? - Hawaii Real Estate Market & Trends | Hawaii Life (2024)

FAQs

Is Honolulu a good place to invest in real estate? ›

The short answer to this question is yes! As a Hawaii realtor, I have seen the increasing interest in Hawaii real estate as a safe investment. Hawaii offers so much to both residents and visitors, and owning a piece of Hawaii is not only a wise financial decision but also an investment in lifestyle.

Hawaii Real Estate Market Statistics

The Hawaii sale-to-list price dropped 3.3 points year-over-year to 97.9%. 17.2% of home prices dropped in March 2023- compared to just over 10% in March 2022.

Is it a good time to buy a house in Hawaii? Although real estate has always been more expensive in Hawaii than most other states, the dip in demand makes it a good time to buy right now. Listing prices are down and homes are sitting on the market which can allow buyers to negotiate a great deal.

While the Hawai'i real estate market does have its ups and downs, historically it has always had steady appreciation, and the downs are not as drastic as the U.S. Mainland. Since 1972, the long-term average annual appreciation has hovered around 6 percent for a single-family home and 5.4 percent for a condominium.

But the main point is that Hawaii has more housing regulation than any other state in the nation, and that's limited the supply of housing, which is why we have the highest median home prices in the nation.

We have among the highest income taxes and tourism taxes. Now, Hawaii also has a tax called the general excise tax, which is kind of like a sales tax, except it's on all goods and services at every step in the production process.

Market Statistics

Big Island median sale price movement is mixed in June 2023, with the home price up 8% to $515,000 and the condo price down -2% to $600,000 from last year.

If you want to go to Hawaii …

It can be very expensive. Hidden costs like resort fees and exorbitant parking prices can easily break the budget. But there are ways to save on the cost of a vacation to Hawaii. Traveling before or after the peak summer season can save considerably.

The cost of Hawaii vacations has jumped tremendously. We just experienced this ourselves on last week's visit to the Big Island. The price of the same accommodations rose about 300% over pre-Covid.

What month is best to sell a house in Hawaii? ›

If you're after the best sales price, the best month to sell in Hawaii is August when houses sell for 10.83% more than average. If your priority is speed, May is the best time to sell because homes tend to sell 8 days faster.

Big Island Market Report

Similar to what happened on other islands, the median prices of single-family homes and condos on the Big Island of Hawaii went down compared to last year. The number of closed sales for single-family homes and condos were 162 and 62, respectively, which is almost 30% less than last year.

Big Island is Hawaii's Most Affordable Island for Homes and Condos - Hawaii Real Estate Market & Trends | Hawaii Life.

It's been stated that the average HOA fee in Hawaii statewide in 2021 was $762 a month. That's compared to the overall U.S. average of $286. A study showed that the current association fees can be almost as high as mortgages.

In particular, prices have increased dramatically in the wake of lower borrowing costs, higher demand, and a lack of available inventory. It is worth noting, however, that real estate in Oahu has appreciated at a slightly slower rate than the rest of the country in the last year—18.8% and 19.6%, respectively.

Property taxes: Buying a house in Hawaii may be expensive, but property taxes here are actually quite affordable. Relative to tax rates in other states, Hawaii's property tax rate is very low. According to the Tax Foundation, you can expect to pay an average of 0.31 percent of your property's value each year.

The climate in Hawaii leads to higher HOA fees because of the natural wear and tear on buildings and the increased cost of insurance. The humidity and salty air can lead to things needing to be repainted more frequently, and insurance premiums are generally higher in Hawaii than on the mainland.

On average, rents on listings have reached the $450 mark, reflecting a 5.15% increase in returns based on the current median price in WAIKIKI. WAIKIKI, 6169 ranks 1st in WA in terms of median property value increase and capital gains, based on year-to-date figures.