You May Be Busier Than Ever As Hawaii’s 2021 Real Estate Market Heats Up
Despite the onset of the COVID-19 pandemic last year, the Hawaii real estate industry has remained strong. In 2021, markets across the state are forecasted to continue that momentum. With high demand, limited inventory, and rapidly rising home sale prices, real estate agents all across Hawaii should gear up for another booming year.
2021 Hawaii Real Estate Outlook: Heating Up
In November 2020, the average home in Hawaii was priced at $667,005, a 3.0% increase year-over-year. There’s little sign of prices stalling, though, as Zillow predicts this figure will rise another 9.3% within the next year. Rising prices echo the gradual healing of the economy statewide, signaling that this year could be profitable for agents and sellers alike, while low-interest rates maintain some degree of affordability for buyers.
Despite rising home prices, buyers offered above asking price in nearly half of all transactions in November 2020. In the same month, median days on market also fell to 11, a record low. Between lasting low-interest rates bolstering demand and a consistently low supply, Hawaii is a seller’s market as 2021 unfolds.
After the economic tribulations of 2020 and in the midst of a national big city exodus, rent prices increased only 0.6% state-wide and even decreased 4.8% in the Honolulu metro area. Meanwhile, only 0.5% of Hawaii homeowners fell delinquent on their mortgage, and equity slipped into the negative on only 2.0% of homes statewide. So, while new renters and buyers flock to Hawaii, current homeowners continue to thrive as well.
2020 Hawaii Real Estate Market Data
|Zillow Home Value Index||$667,005|
|1-Year Change on Home Values||+3.0%|
|1-Year Change on Rent Prices||+0.6%|
|Homes With Negative Equity||2.0%|
|Delinquent on Mortgages||0.5%|
|Buyer’s or Seller’s Market||Seller’s|
Market Insights for Hawaii
While Hawaii’s economy was particularly hard hit by COVID-19, the resilient housing market is a bright spot in the new year. Unique initiatives designed to attract those still working-from-home as well as a gradual return to air travel could further help mitigate some of the economic damage. Federal assistance may also bolster economic growth and compound success in real estate.
Despite the traditionally hot spring and summer buying seasons far behind us, closed sales also increased a whopping 17.8% year-over-year in November 2020. This momentum illustrates a departure from the typical seasonality of home buying and is a good sign for the coming winter months. Buyers are still eager to commit, even in historically slower months.
With a strong 2021 forecast, Hawaii real estate agents will need to be at the top of their game. From buyers battling rising prices to sellers fielding multiple offers, there has never been a better time to serve your fellow Hawaiians. This year, agents can expect to benefit from and help contribute to a booming local and national economy as the Hawaii real estate market heats up.
Take On 2021 With the Best Hawaii Real Estate Courses From The CE Shop
Enroll in our Pre-Licensing program now to get your career started and begin connecting your fellow Hawaiians with the home of their dreams. Or keep going strong with one of our comprehensive, 100% online Continuing Education packages. Want to stay up to date on everything Hawaii? Join the Western Real Estate Facebook Group!