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In 2013, Hawaii real estate market has been booming and that trend is set to continue through the end of 2013 and through 2014 and possibly beyond. Currently, there is a shortage of houses available for sale in the market and it is definitely a seller’s market as single-family houses, condos, and townhouses are receiving multiple offers after spending just a few days on the market. However, it is also a good time to buy as home prices have not yet hit their peak and interest rates are attractively low, enabling buyers to qualify for home purchases more readily.
As of September 2013, median home sales prices varied depending upon which island the home was purchased on. The big island, Hawaii, had the lowest median sales price at $295,000 according to the Hawaii Association of Realtors while Oahu was the highest at $675,000. The median sales price for the islands of Kauai and Maui were $515,000 and $531,000 respectively. Currently, homes on the market are typically receiving their asking price and sometimes even getting offers over asking price. Although sellers still do best when they price their homes at or slightly below market value, as more buyers will be interested in looking at an attractively priced property.
Hawaii has the highest cost of living of any state in the nation. It seems everyone wants to live in paradise, and why not? Hawaii is undeniably beautiful with tons of opportunity for recreational activities. Honolulu itself is the 5th most expensive city to buy a home in, with the average income necessary for home ownership there being $115,949 according to a 2013 Center for Housing Policy report. If trends continue, by 2015 a median value Honolulu home at a projected $815,000 will be equivalent in value to 5.3 homes in Las Vegas.
With mortgage rates right around 3.5% for a 30-year fixed-rate loan in 2013, it is easier for investors to enter the housing market and snap up rental properties than in years past. It should be noted however that banks generally require a larger down payment for a rental property as opposed to an owner-occupied residence. The currently low interest rates do cause there to be more competition when searching for that perfect residence or rental property as more buyers are able to qualify for home loans.
Sellers in Hawaii looking to upgrade their residence will find that since the market is rising across the board, they could wait for the market to increase more but then would be paying a higher price for their future home as well so they can choose to sell right away and it would still have the same effect as waiting. In fact, it might be easier to purchase a replacement home currently as there is less competition than projected in future months. Presently low home inventory makes it an excellent time to get that great price for your home if you are a seller and with low interest rates and the market not quite at its peak yet it is also an excellent time to consider buying Hawaiian real estate.
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223 Saratoga Unit 818, Honolulu — Trump Tower Waikiki
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Beautiful complete remodel; reconfigured open kitchen layout, granite, stainless steel appliances, custom cabinets, engineered woo…
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