|Closing Conducted by:||Attorneys, Title Companies, Escrow Companies|
|Conveyance:||Warranty Deed/Sale Deed|
|Primary Foreclosure Method:||Judicial & Non-Judicial|
|Process Period:||3 - 4 months|
|Notice of Sale:||Trustee|
|Income Tax:||1.4% - 8.25%|
|Corporate Tax:||4.4 - 6.4%|
|Median Property Tax:||0.26%|
|Property Taxes by County:||http://www.tax-rates.org/hawaii/property-tax#Counties|
|Transfer Fee:||Transfer tax 0.1%-1.0% ; Based on value 0.15%-1.25%|
Median Home Value: $777,762
1-Year Appreciation Rate: +16.6%
Total Sales: 865 (+7.99% year over year)
Pending Sales: 4,435 (-37.8% year over year)
Median Sales Price: $929,500 (+28.54% year over year)
Homes Sold Above List Price: 43.5% (+21.9% year over year)
Homes With Price Drops: 6.3% (+0.6% year over year)
Average Days On Market: 58 (-41 year over year)
Median Rent Price: $2,146 (+11.4% year over year)
Price-To-Rent Ratio: 30.20
Unemployment Rate: 6.6% (latest estimate by the Bureau Of Labor Statistics)
Population: 1,415,872 (latest estimate by the U.S. Census Bureau)
Median Household Income: $81,275 (latest estimate by the U.S. Census Bureau)
Total Foreclosure Filings In Q3: 135 (+58.1% year over year)
Real estate in Hawaii has become a commodity, which begs the question: How much is the average home in Hawaii? The median home value in Hawaii has undergone some significant changes in a relatively short period. As recently as January 2012, when the Hawaii real estate market bottomed out during the last recession, real estate on the island state boasted a median home value of about $402,000. Today, median home values in the Aloha State have reached $777,762. For those keeping track, today’s prices are approximately 93.4% higher than they were at their lowest point of The Great Recession. As of now, median home values in the Hawaii real estate market have become the beneficiary of nine consecutive years of appreciation.
The most significant increases have taken place in the wake of the pandemic. Since March of last year (when COVID-19 was officially declared a global emergency), the median home value in the Hawaii housing market has increased 18.2%. The increase directly results from a convergence of several indicators: lower interest rates, increasing competition, a lack of inventory, and more savings in people's bank accounts.
However, it should be noted that the percentage of homes with price drops has increased year over year, albeit modestly. With a mere 6.3% of listings exercising price drops in September, the overwhelming majority are still selling above listing prices. However, the modest year-over-year increase could suggest the market is starting to temper. Prices have increased a lot, and this could be a sign that increases are slowing down.
Tax Lien or Deed: Redemption Deed State
Interest Rate: 12% after Deed Sale
Redemption Period: Varies by County (6 Months - 1 Year)
Prohibitively expensive housing will make long-term investments more attractive: Median home values in the Hawaii real estate market suggest profit margins are thin at the moment. However, the same high prices preventing many from buying also force many to rent, which bodes incredibly well for landlords. As long as prices remain high and inventory remains low, there’s an excellent chance rental properties will be the best exit strategies for investors to pursue.
Prices will continue to rise: Not unlike everywhere else in the country, real estate in Hawaii has seen its prices increase almost exponentially for nine consecutive years. The jump in home prices is primarily attributed to a lack of inventory. Until the issue is addressed, prices will most likely continue to rise, albeit at a slightly slower pace.