Now that 2023 is over and we are getting into 2024 it is time to look at what we can expect from the housing market in Hawai’i this year. 2023 had its ups and downs, with mortgage interest rates increasing and the wildfires that lowered buyer confidence. However, the housing market in Hawai’i has stayed strong and houses have continued to be bought and sold throughout the year. 2024 is set to be an interesting year with lots of opportunities whether you are thinking of buying or selling a luxury home in Hawai’i. In this blog, Marco In Kona will talk about everything you can expect for the housing market in Hawai’i in 2024.
Lower Mortgage Interest Rates
Since 2022, mortgage interest rates have been on the rise and it hit its peak in November of 2023. In 2024, you can already see them starting to decline and you can expect this to carry on throughout the year thanks to the anticipated rate cuts. It is important to note that mortgage interest rates are still much higher than they used to be and it is important to adjust your expectations if you are a buyer in this market.
Fewer Homes
One thing that will continue to put pressure on the market is the lack of houses available. Marco In Kona advises you to watch the level of inventory during 2024 especially if you are selling your luxury home in Hawai’i. This will guide you towards the best time to put your house on the market to get the best price. At the end of last year, there was an increase in houses available and they were quickly bought so it is important to stay on top of it this year.
Pricing Your Home
When selling your luxury home in Hawai’i one of the main concerns is making sure you can sell it for the best possible price. However, it is important to price your home correctly. In 2023, 27% of the homes that were sold had a price reduction and took 76 days longer to sell. Marco In Kona can help advise you on the best valuation for your home to make sure you not only get the best price but that you are also not waiting around to make the sale.
Now let’s look at individual areas in Hawai’i and their housing markets in 2023. Hopefully, this will provide you with some insight into what to expect for 2024.
Kaua’i
2023 saw an overall decrease in the amount of properties sold in Kauai from 2022. Property also spent much longer on the market before being sold. However, the median sold price remained much the same for homes and condominiums and land price increased by 28%. This is likely to continue to rise in 2024.
O’ahu
O’ahu also saw a decrease in the number of properties sold in 2023 and properties stayed on the market for an average of 65% longer than they did in 2022. There was a significant decrease in the amount of properties available on the market in 2022 which likely contributed to the drop in sales. The median sold price of homes stayed fairly consistent from 2022 to 2023 with only a small decrease for residential properties.
Maui
Maui saw a significant increase in the median sold price of residential, condominium and land properties. While the length of time residential and condominium properties remained on the market was longer, it was a much smaller increase compared to other areas on Hawai’i. The average decrease in sales in Maui was about 32%, but there was also a 21% decrease in the amount of properties on the market.
Hawai’i Island
Much like the other areas, Hawai’i Island also experienced a significant decrease in the amount of sales but there was also a 19% decrease in the amount of properties for sale so this would have had a large impact on the sales in 2023.
While 2023 was not the best year for the housing market in Hawai’i, 2024 is setting up to be much better for buyers and sellers. There will be lots of things that can be taken advantage of as a seller such as the lack of properties available and increasing house prices. Buyers will also benefit from the decreasing mortgage rates. If you are looking to sell your luxury home in Hawai’i in 2024 and want to make the most of the market, Marco In Kona can help. Visit our website or get in touch to find out more.