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.
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)