Hawaii
Housing Market
The landscape of Hawaii's housing market evolves with shifting home prices and demand. Houzeo's housing market report tracks these changes in supply and demand across Hawaii. Our report offers real-time insights to help you make informed decisions.
Overview
Supply
Demand
Buy or Sell
Market Insights
MigrationHawaii Housing Market Overview
As of January 2025, home prices in Hawaii had grown 5.9% YoY. This steady increase indicates the strength of the housing market. The median home price in Hawaii is $778,600, poised to reach even higher in the summer. Moreover, the number of homes sold has increased by 4% YoY.
The median days on market can also indicate the market's competitiveness. Homes in Hawaii now spend 92 days on the market before going under contract. Previous years' trends suggest that this number may drop slightly, but it usually stays between 70 and 80 days in summer. These metrics collectively indicate changes in the Hawaii housing market's pace and affordability.
What Does It Mean for Home Buyers and Sellers?
The median days on market can also indicate the market's competitiveness. Homes in Hawaii now spend 92 days on the market before going under contract. Previous years' trends suggest that this number may drop slightly, but it usually stays between 70 and 80 days in summer. These metrics collectively indicate changes in the Hawaii housing market's pace and affordability.
What Does It Mean for Home Buyers and Sellers?
- If You're a Buyer: With a high median of 92 days on the market and slow growth in home sales, you have the upper hand and more negotiation power. However, the median home price in Hawaii ($778,600) is significantly higher than the national average of $418,478. This makes housing in Hawaii relatively expensive. That said, the low competition and ample inventory make it a good time to plan your home purchase.
- If You're a Seller: You can take advantage of rising home prices and high demand in Hawaii, with a promising 5.9% price increase. The best time to sell your home is between April and June, when you'll see the highest returns. Hawaii's desirable climate and natural beauty consistently attract buyers, making it a prime location for investment and living.
Hawaii Housing Supply
House prices in Hawaii are higher due to the strict zoning regulations that restrict development. Additionally, many outside investors are attracted to the island's geography and buy properties, contributing to a significant disparity between supply and demand.
Hawaii homes for sale increased by 25% to 7K in January 2025, with 1,478 new listings, an 11% year-over-year increase. New construction is slated to add to the housing inventory. However, high mortgage rates may shrink home sales. The 7-month supply period is also in favor of buyers.
What Does It Mean for Home Buyers and Sellers?
Hawaii homes for sale increased by 25% to 7K in January 2025, with 1,478 new listings, an 11% year-over-year increase. New construction is slated to add to the housing inventory. However, high mortgage rates may shrink home sales. The 7-month supply period is also in favor of buyers.
What Does It Mean for Home Buyers and Sellers?
- If You're a Buyer: Hawaii's market is currently balanced with a 25% increase in inventory and 7 months of supply. However, with costly homes, you'll need to budget for a 10% down payment ($77K) and closing costs between 4% and 5%. Current mortgage rates above 6.95% make home buying even more expensive. On the plus side, the low competition and adequate supply allow you to negotiate better prices and seller concessions.
- If You're a Seller: The housing market in Hawaii is currently balanced, with supply and demand in equilibrium. Home prices are skyrocketing, and you'll need to pay a commission of 3% to 4% on the sale, which could exceed $30K. Additionally, closing costs of 5% to 6% and other fees will add to your expenses. To sell your home quickly before more supply hits the Hawaii real estate market, focus on staging and marketing your home.
Hawaii Housing Demand
The percentage of homes selling above the list price is a key indicator of housing demand. When more homes sell above the list price, it shows strong buyer competition and high demand. A decline suggests more supply. Tracking this trend helps you gauge market competitiveness.
In January 2025, 15% of homes in Hawaii sold above the list price, while 21% sold below the list price. The number of homes selling above the list price will drop more in the coming months. This combined with a 97% sale-to-list price, suggests that competition among buyers will dip, and they can negotiate better.
What Does It Mean for Home Buyers and Sellers?
In January 2025, 15% of homes in Hawaii sold above the list price, while 21% sold below the list price. The number of homes selling above the list price will drop more in the coming months. This combined with a 97% sale-to-list price, suggests that competition among buyers will dip, and they can negotiate better.
What Does It Mean for Home Buyers and Sellers?
- If You're a Buyer: The current Hawaii housing market leans in your favor. The percentage of homes with price drops (21%) is rising by 4 points YoY. While high mortgage rates could make things challenging for you, the 97% sale-to-price ratio suggests you have room to negotiate. You can also ask for seller concessions.
- If You're a Seller: Selling now could be a smart move, given the increase in home prices. However, with an average supply of 7 months and a higher absorption rate, the market is less competitive, and you may not receive multiple offers. Demand will rise if you wait until summer, but ensure your home meets investors' preferences to maximize the opportunity.
Is It a Buyer's or Seller's Market in Hawaii?
Strong
Buyer
Buyer
Balanced
Seller
Strong
Seller
Buyer’s Market
Seller’s Market
Balanced: Neither buyers nor sellers dominate the market. Supply meets demand, prices stay stable, and both parties negotiate on an equal footing.
Is It a Buyer's or Seller's Market in Hawaii?
As of January 2025, home buyers have an advantage due to increased months of supply and average days on the market. Though property prices in Hawaii are extravagant, the absorption rate is 7 months, and it takes an average of 92 days to go under contract. Competition is also low for buyers, but mortgage rates are on the higher side. The current mortgage rate is close to hitting 7%, which may reduce buying power in the state-wide real estate market.
However, a 25% growth in housing inventory provides plenty of options to Hawaii home buyers. These trends vary significantly across the Hawaii real estate market. Pearl City has a highly competitive market with an exorbitant 145% price growth and shorter days on the market, at 54 days. So, check your local real estate trends before you decide to invest.
Hawaii Housing Market Insights
Real estate in Hawaii is expensive due to limited land and high demand from both residents and tourists. Wealthy investors often drive up prices by purchasing properties as investments. Compared to the national market, Hawaii's housing market is less competitive. The median home price in Hawaii ($788K) is growing at around 5%, and inventory is stable with 7K homes available. A sharp price increase and lower inventory may signal a seller's market, while buyers may benefit if prices hold steady or drop with rising inventory.
Overall, Hawaii's housing market trends indicate a state-wide balanced housing market. However, you must check for local trends in your area. Housing markets like EWA Beach show low competition, with a 24% drop in home prices and a 95% sale-to-list price ratio. If you're buying a house in Hawaii for an investment, now is a good time to go ahead and invest in luxurious homes.
Overall, Hawaii's housing market trends indicate a state-wide balanced housing market. However, you must check for local trends in your area. Housing markets like EWA Beach show low competition, with a 24% drop in home prices and a 95% sale-to-list price ratio. If you're buying a house in Hawaii for an investment, now is a good time to go ahead and invest in luxurious homes.
Nationwide Migration Trends
In 2024, Hawaii residents moved out of the state to relocate to states like California, Colorado, and Florida. Over 58,078 people relocated from Hawaii for better job opportunities and a low cost of living. Even though the tourism industry operates on a large scale, the jobs in this industry are not well-paying ones. There is also a conspicuous inbound trend, with Hawaii gaining almost 58,539 new residents in 2023-24. The new residents primarily came from California and Arizona. People chose Hawaii primarily for its year-round warm weather, outdoor activities like surfing and hiking, and stunning natural scenery.
Most people looking to move to EWA Beach are from Los Angeles and Seattle. The state's current cost of living index is 189, the housing costs index is even higher at 310, and the utility cost index is at 198. You should consider these factors before investing in real estate in Hawaii.
Most people looking to move to EWA Beach are from Los Angeles and Seattle. The state's current cost of living index is 189, the housing costs index is even higher at 310, and the utility cost index is at 198. You should consider these factors before investing in real estate in Hawaii.
Frequently Asked Questions
How have average home prices in Hawaii changed over the past year?
Home sale prices in Hawaii have continued to rise over the past years, driven by high demand and heavy investment in tourism. Prices have increased at an annual growth rate of 5%, with multiple regions seeing triple-digit percentage growth. You can use our free home value estimator to know your home's value.
What is the cost of living in Hawaii?
Hawaii's cost-of-living index is 189, among the highest in the US. The average cost of housing in Hawaii is sky-high. A typical home costs about $800,000, 191% more expensive than the national average of $418K. The per-month rental costs in Hawaii are 49% more than the national average. You can use our free cost of living calculator in Hawaii to learn more.
What's the average home price in Hawaii?
The average house price in Hawaii depends on the house type, size, and local market conditions. It typically ranges from $583K for condos to $964K for single-family homes. If you plan on buying a home, you can find cheap houses for sale in Hawaii that fit your budget.
What is the Hawaii housing market forecast for 2025?
According to housing market predictions for Hawaii, the real estate market is expected to yield high profits for home sellers. Growing investments in luxury properties and tourism will drive house prices upward.
Is this a good time to buy a house in Hawaii?
Housing inventory is tight, and home prices in Hawaii are rising. Check real estate trends for prices, inventory in your city, and mortgage rates. Typically, sellers can benefit from high demand and rising prices. However, when mortgage rates are stable and there is plenty of housing inventory, it's the best time to buy a house in Hawaii.
When is the best time to sell a house in Hawaii?
The beginning of March is ideally a good time to start preparing for a home sale in Hawaii. During this season, housing demand is at its peak, and inventory is tight. Check local trends to know the best time to sell a house in Hawaii.
Is it a buyer's market or seller's market right now in Hawaii?
Hawaii's housing market is balanced right now, with increased prices and more months of supply. Hawaii real estate prices grew by 5% amid low competition. Mortgage rates are high for buyers, but supply is enough. The current mortgage rate is nearly 7%, which may reduce buying power. However, a 5% increase in housing inventory provides many options to Hawaii home buyers.
What is the best place to live in Hawaii?
Honolulu, Maui, and Kailua are among the best places to live in Hawaii. These places offer a range of housing options, including single-family homes and condos. Hawaii not only attracts people with its vibrant culture and wonderful islands for hiking, surfing, and snorkeling, it also has growing sectors like tourism, agriculture, and military defense. People also choose to move here to improve their emotional health and quality of life.
How can I list my home for sale in Hawaii?
You can list your home for sale with a Flat Fee MLS Hawaii listing service. High-tech MLS listing sites like Houzeo automatically assign the right MLS paperwork based on your location. 🚀
What's the rate of the average mortgage in Hawaii?
The average mortgage rate for buyers in the Hawaii housing market fluctuates between 6.9% and 7%. It depends on the market and your credit score. Always check current rates with lenders before you apply for a mortgage.
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