The Hawaii Real Estate Market
The median home price for the entire state of Hawaii, according to Zillow, was $550,800 as of September, 2015. This was a 5.4% increase over the prior twelve months. Zillow expects prices to rise 2.9% in the next year.
The median home price statistics include both condos and single family homes. The median price of a single family home in Hawaii was $660,000. Home prices for the state as a whole have recovered from the significant decline due to the Great Recession. The price for single family homes hit $632,000 in the summer of 2007 before falling to around $530,000 in 2012.
The price of a condo in Hawaii exceeded the high of $383,000 set in the summer of 2007. The state median price for a condo hit its 2007 high again in February 2015. The median sale price of condos in Hawaii in September, 2015 was $395,000.
Hawaii’s housing market is considered healthy. The market is actually very hot on Oahu, where two thirds of the population lives on an island where more than half the land is locked up in agricultural zoning, military or state and federal parks. However, the rest of the islands have recovered most of the value they lost since the 2007 housing crash. Only 5.8% of homes in Hawaii have negative equity, compared to 14.4% nationally, as of mid-2015. This doesn’t have as much of an impact on Hawaii real estate as the rest of the nation, since nearly four in ten Hawaiians are renters.
The housing market has good turnover. The average time on the market is around 73 days, as of August 2015. Homes costing less than $500,000 are routinely bid up because of the relative lack of affordable housing. Condos also sell well and at a faster pace than single family homes, since they can be sold by residents to investors or retirees.