Hawaii Real Estate – Market Conditions on the Four Islands

Hawaii is a unique state.  It’s comprised of four different islands and its economy is quite different from any of those in the rest of the country.  That makes the Hawaii real estate market different, too.  The best way to know what’s happening in the Hawaiian market is to look at each of the individual islands, as well as approaching the state as a whole.

Oahu.  The island of Oahu is undergoing normal market adjustments in light of the overall global economic picture.  The number of home sales has dropped, as have median prices for properties.  Average condominium prices have dropped below the $300,000 mark on average, with single family homes falling just under $600,000.  Although sales and prices have slowed, the overall market in Oahu has demonstrated a great deal of stability.

Maui.  Maui was a very hot market for many years.  Today, things appear to be settling down and the market is correcting for homes that may have been overpriced.  The average home value in Maui, however, is actually up from 2007 levels by a whopping twenty percent, according to one realtor association.

Kauai.  This island has also seen a slight dip in home sales, but is still posting consistent growth numbers with respect to its real estate market.  One interesting feature of Kauai is the strictly enforced developmental regulations.  This prevents, for example, the construction of larger condominiums.  These restrictions often serve to buttress Kauai from some of the more dramatic ups and down found elsewhere in the Hawaii real estate market.

Big Island.  The Big Island is seeing prices scale back from the all-time highs of recent years.  That drop shouldn’t be seen as a sign of panic in the Hawaii real estate market, though.  Compared to most of the country, Big Island properties are maintaining value.  The real estate market on the Big Island is currently in what might be considered a “bargain low”.  The long-term economic prospects for the area are solid and this may be a good time for investors to pick up temporarily devalued real estate at a bargain rate.

Overall.  Although each island has its own story to tell, we can spot some trends in the Hawaii real estate market.  As is the case with the rest of the country, property value are (on balance) declining somewhat.  Relative to other areas, however, the Hawaiian market is showing high levels of stability and there’s no reason to project any “meltdown” in the marketplace.  The Hawaii real estate market currently appears relatively friendly to buyers and investors as the market undergoes corrections, although there is some chance that growth may not pick up as quickly as some might hope.