Hawaii Real Estate Market Trends & Analysis

Thanks, in large part, to incredible demand, overwhelming international investments, strong employment numbers, and increasing wages, the economy supporting the Hawaii real estate market is nothing less than encouraging. Nonetheless, The Aloha State’s lack of available inventory and increasing levels of demand have created a very competitive marketplace.

Prices have increased almost exponentially, making it difficult for both buyers and sellers to actively participate in the market. Despite Hawaii’s latest round of appreciation, however, prices appear to have reached a tipping point. It is simply too expensive for most people to even consider buying real estate in Hawaii, which suggests price increases are poised to temper, and perhaps even regress towards the national mean.

That said, the Hawaiian housing market isn’t without opportunity. In addition to expected price easements, the state was just one of a few which saw foreclosure activity increase over the last year. Impending access to “cheaper” homes could tip the scales in favor of buyers and investors sooner rather than later.

Hawaii Real Estate Fees & Regulations

Real Estate

Closing Conducted by: Attorneys, Title Companies, Escrow Companies
Conveyance: Warranty Deed/Sale Deed

Foreclosure Procedure

Primary Foreclosure Method: Judicial & Non-Judicial
Process Period: 3 - 4 months
Notice of Sale: Trustee
Redemption Period: None

Taxes

Income Tax: 1.4% - 8.25%
Corporate Tax: 4.4 - 6.4%
Sales Tax: 4.00%
Estate Tax: 10%-15.7%
Inheritance Tax: No
Median Property Tax: 0.26%
Property Taxes by County: http://www.tax-rates.org/hawaii/property-tax#Counties

Average Transactional Costs

Closing Cost: $2,808
Transfer Fee: Transfer tax 0.1%-1.0% ; Based on value 0.15%-1.25%
Origination Fee: $2,009.00

Overview

  • Median Home Value: $616,600
  • 1-Year Appreciation Rate: 0.0%
  • Median Home Value (1-Year Forecast): -0.7%
  • Median Rent Price: $2,350
  • Price-To-Rent Ratio: 21.86
  • Average Days On Market: 89
  • Percent With Negative Equity: 4.7%
  • Unemployment Rate: 2.8% (latest estimate by the Bureau Of Labor Statistics)
  • Population: 1,420,491 (latest estimate by the U.S. Census Bureau)
  • Median Household Income: $74,923 (latest estimate by the U.S. Census Bureau)
  • Percentage Of Vacant Homes: 13.65%
  • Foreclosure Rate: 1 in every 2,895

Hawaii Foreclosure Trends & Statistics

Tax Lien Investing

  • Tax Lien or Deed: Redemption Deed State
  • Interest Rate: 12% after Deed Sale
  • Redemption Period: Varies by County (6 Months - 1 Year)