Like most of the country, the Big Island’s real estate industry took a hit during and after the housing market crash of 2008.
Buyer confidence plummeted, real estate transactions slowed, and many felt unable to realize their dream of living on the Big Island, while those who had made the leap prior to 2008 wondered if they’d made a mistake.
Thankfully, Big Island real estate statistics for June 2014 show promising, continued growth from last year in the same quarter.Chart via Old Republic Title and Escrow of Hawaii.
The number of sales of single family homes increased 2.2%, and median home prices rose by a healthy 4.46%.
This means I can say with confidence that buying on the Big Island is a solid choice and investment in 2014.
Let’s have a closer look at these Big Island real estate statistics, and I’ll explain what they mean for you, as potential home buyers and sellers.
Median Sales PriceChart via Old Republic Title and Escrow of Hawaii.
The final purchase price of Big Island homes for sale rose in almost every area between 2013 and 2014. Upmarket and oceanfront properties are selling well, and homes across the board spend less time languishing on the market.
Buyers might be thinking: if home prices rose in 2014, doesn’t that make it more of a seller’s market? How does this benefit me now, as a buyer?
To put it simply, right now Big Island real estate is hitting something of a sweet spot.
Median home prices have not yet risen to pre-recession numbers. Interest rates are still comparatively low. You can still get much more bang for your buck in 2014 than you could in the 1990s and early 2000s, during the Big Island’s real estate explosion.
And, of course, if you’re looking to sell your Big Island home, you can take comfort in a growing market and increasing demand. Most sellers are finding that, when they list their homes, they are getting plenty of interest and no longer have to accept low-ball offers.
Right now, everybody is winning.
Number of Sales
What about all that red in the first graph? Why does it look like sales have gone down in many places?Graph via Old Republic Title and Escrow of Hawaii.
Rest assured. First, the sample size for some areas of the Big Island is quite small—just a few dozen homes. Overall sales of single family homes are up 2.2%; that’s the number we pay attention to.
Plus, in many places where single family home sales are down—like South Kohala and North Kona—condominium sales are up, simply reflecting new buyer priorities, not a down market.
And a little bit of red might mean that fewer homeowners are looking to sell in the first place, deciding to instead wait for the market to shift even more in their favor, or to just relax and enjoy their Hawaii life for as long as they can!
When Should I Move to the Big Island?
I recommend capitalizing on this market “sweet spot” and realizing your dream of living on the Big Island as soon as possible!
From 2014 onward, the price of Big Island real estate is expected to rise, along with interest rates as the economy improves.
What are you waiting for?!