Hawaii is one of the rare places on earth known for its natural beauty and its exquisite housing markets alike. People from all over the world visit Hawaii to spend their holidays, and some even have properties in the state. The Honolulu real estate market has been justifiably stable until COVID-19 hit it. Just like every other sector, the Honolulu real estate market was not left untouched by the pandemic.
With the pandemic affecting everyone’s income and lifestyle, the country’s economy, business, and foreign policies, the Honolulu real estate market saw drastic changes. The property prices shot up while people were either sacked or offered compromised salaries. Such a situation made home ownership almost impossible for several people. The average home value was triple the nation’s, and the staggering unemployment rate worsened matters. Tourism has always been Hawaii’s backbone, and its decline during the pandemic also played a major role in the crisis. The Honolulu real estate market has not completely recovered from the sudden jolt but shows steady recuperation already in 2022. Today we will inspect the Honolulu real estate market trends as of 2022 and give a glimpse of what the future holds.
An Analysis and Prediction of the Honolulu Real Estate Market
A Brief Survey of Honolulu Real Estate Market in 2022
The average home value of Hawaii real estate is $873,237 at this moment, while the average sales price is somewhere around $1,000,000. The unemployment rate has also shrunk to 5.4%, but there are still some more miles to cover. The country’s household income is around $86,000.
Now that we are done with the average numbers, let us quickly proceed to the Honolulu real estate market trends and forecasts to understand the present dynamics of the Hawaiian real estate market.
Honolulu Real Estate Market Trends and Forecast for 2022
- Home Values Will Increase
One blatant Honolulu real estate market forecast is the increase in price value. The average home value has increased to 18.8% in the last 12 months due to rising demand, lower borrowing costs, and inadequate inventory levels. The Honolulu real estate market forecasts warn of the increment in home values upto 12.4% in the next year.
This, however, does not mean you will not find a house for sale in Hawaii within your budget; if you know where to look or have the right people guiding you, you are sure to find something within your reach in the state.
- Increase in Rental Rates
When the home value rises, the increase in rental rates can’t be far behind. It is safe to assume that the rental rates will also increase in the Honolulu real estate market. Over the last year, the rental rates have increased steadily, and there is no chance of drastic restoration of the prices soon.
In such situations, it can be difficult to rent a house in the Honolulu real estate market on your own. You can, however, seek help from experts on the market to get a house at the right price. Professional companies like Graham Properties know the market like the back of their hand and will be able to get you a fair price in the present situation. The need for property agents has increased more than ever. It is impossible to keep track of this volatile Honolulu real estate market industry for novices. Therefore, unless you are well-versed in the field, it is best to get professional help if you wish to bag the best property.
- Increase in Interest Rates
A state’s overall interest rate policies can also affect the housing market. The Fed has plans to increase interest rates to deal with inflation, which can affect your budget if you plan to buy a house in the Honolulu real estate market this year. The pricing of houses will also go high to cover the expenses.
- Buyer Will Look For Places Beyond the Main City
Since the Honolulu real estate market has increased its prices, lesser people will be able to buy properties within the city. Price hikes will drive people to migrate to the suburbs in the hope of a decent property within their budget.
The nature of work has also changed, and working from home is here to stay encouraging people to readily trade expensive houses in the city with cheaper ones far away. Since now you do not have to commute to work every day, it only makes sense to buy a cheaper property.
The Honolulu real estate market has definitely become more expensive and shows no sign of a considerable dip in the coming months. However, this does not necessarily have to be bad news. You can always find a suitable property within your budget in the city if you are attentive enough. Since the prices have gone high, a lot of people would back out from buying, giving other potential buyers a better chance. Keep searching for properties along with keeping a tab on the market. We admit that the Honolulu real estate market is huge and complex. So if all this seems too overwhelming, you can always hire a property agent to make the journey smooth and simple.